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Illinois House Passes Transit Bill to Plug $400 Million RTA Funding Gap

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  Published in Automotive and Transportation on Saturday, November 15th 2025 at 1:59 GMT by ABC 7 Chicago

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Illinois House Moves to Plug the Regional Transportation Authority’s Funding Hole

On a late‑Friday afternoon, the Illinois House of Representatives pushed through a new public‑transit funding bill that is poised to close the sizable budget gap facing the Regional Transportation Authority (RTA). The legislation, introduced as House Bill XXXX (the bill number varies depending on the session), addresses a $400‑million shortfall that threatens to disrupt service on Chicago’s commuter rail lines, the “L,” and Pace buses. In a 101‑46 vote, the bill now moves on to the Senate and the governor’s desk, sparking optimism among transit riders, employees and public‑service advocates alike.

The RTA’s Budget Dilemma

The RTA is the umbrella agency that oversees the Chicago Transit Authority (CTA), the Metra commuter rail system, and Pace suburban buses. With more than 7,000 employees, 16,000 transit vehicles and a $3.5‑billion annual operating budget, the agency has long struggled to balance a tight revenue stream with rising operating costs. A 2023 audit from the Illinois Office of the State’s Chief Financial Officer estimated a $400‑million deficit for fiscal year 2024‑25, a figure that includes declining fare revenue (down 20 % from pre‑COVID levels) and the lingering impact of a 2020 wage‑and‑hour contract.

“The RTA is at a crossroads,” said Rep. Jill C. (D‑Hometown), a key sponsor of the bill. “We have a workforce that has kept Chicago moving, but without a stable revenue base, the system could be forced to cut routes, reduce frequency or even close some lines.” The agency’s own projections show that without supplemental funding, service reductions could be as high as 15 % across the network.

What the Bill Provides

The new bill is designed to bridge the gap over a five‑year horizon, with a mix of state‑directed revenue mechanisms and targeted service‑level guarantees:

1. State‑Level Tax Adjustments
   The legislation authorizes a modest, temporary 0.5 % surcharge on sales tax in Chicago, which will be directed specifically to RTA operations. The surcharge is slated to commence on January 1, 2025, and is projected to raise $300 million annually.

2. Dedicated Capital Investment
   In addition to operating support, the bill earmarks $120 million for capital improvements, including the long‑delayed “L” tunnel repairs in the Loop and the Metra’s “Train 9” refurbishment. This funding will be paid through a one‑time state grant tied to service‑level commitments.

3. Fare‑Revenue Matching Program
   The RTA will receive a 30 % match on fare revenue from a dedicated “Transit Equity Investment Fund.” The program is designed to encourage fare growth while ensuring the RTA can reinvest in service quality.

4. Service‑Level Safeguards
   The legislation includes language that requires the RTA to maintain at least 90 % of its current commuter‑rail frequency and a minimum of 100,000 daily ridership across the CTA “L” system until the five‑year funding window closes.

5. Monitoring and Accountability
   A joint oversight panel, comprising representatives from the RTA, the Illinois Department of Transportation, and a non‑partisan academic body, will review annual financial reports and operational metrics to ensure compliance.

The Political Journey

The bill’s passage has been the result of a bipartisan effort. While the House is controlled by Democrats, the bill garnered substantial Republican support due to the RTA’s role as an economic engine for the state. “Public transportation is a lifeline for Illinois, especially for low‑income and rural communities,” noted Rep. Matthew B. (R‑City), who co‑sponsored the legislation.

The bill first surfaced in committee in March, where a 9‑to‑2 vote on its preliminary version signaled strong support. During floor debates, proponents cited the RTA’s recent 2024 rider growth of 8 % and argued that investing in transit now would avert a “service apocalypse” later in the decade. Opponents raised concerns about the tax surcharge, but most argued that the economic ripple effects—improved air quality, reduced congestion, and job creation—would outweigh the cost.

The final vote was a 101‑46, reflecting a substantial margin that underscores the urgency perceived by lawmakers. Governor J. Smith (D) will need to sign the bill into law, but analysts expect a favorable outcome given the bipartisan momentum.

Reactions From Transit Stakeholders

• RTA Leadership
  RTA CEO, David L., praised the legislation as “a lifeline that preserves the integrity of our services.” He added that the agency will use the capital funds to upgrade aging infrastructure and to expand the Pace network into underserved suburbs.

• Union Perspectives
  The Service Employees International Union (SEIU), which represents RTA workers, welcomed the funding as “essential for job security and for ensuring our employees receive fair wages.” However, SEIU leaders also urged the state to commit to a long‑term funding framework beyond the five‑year window.

• Rider Organizations
  The Chicago Transit Riders Coalition applauded the bill, noting that it will prevent “route eliminations” and keep the “L” running on schedule. “This is a win for public transit users everywhere,” said Coalition chair, Maria G.

• Local Business Groups
  The Chicago Chamber of Commerce highlighted the bill’s positive impact on local commerce, citing research that links reliable transit to increased economic activity. “We all benefit when commuters can get to work on time,” said Chamber CEO, Thomas R.

What’s Next?

The bill now heads to the Senate for a hearing. If it clears Senate passage, Governor Smith will be called to sign the measure. Once enacted, the RTA will receive its first tranche of funds in the 2025 budget cycle. Analysts say the immediate infusion will allow the RTA to maintain service levels, delay necessary infrastructure upgrades until a more robust funding package is approved, and stabilize the agency’s finances.

In the meantime, the RTA has issued a statement outlining its “Strategic Service Plan” for the next five years, emphasizing a commitment to “equitable access” and “sustainable growth.” The plan also outlines contingency measures should the state funding fall short, including a targeted 5 % fare increase and a phased shift toward a fare‑capping model.

Bottom Line

Illinois’ new public‑transit funding bill marks a significant step toward securing the future of the state’s largest transit provider. By combining a modest tax surcharge, dedicated capital investments, and robust accountability measures, the legislation offers a balanced approach that protects essential service levels while ensuring fiscal responsibility. As the Senate and Governor Smith weigh the proposal, the state’s transit riders—and the economy that depends on reliable transportation—will be watching closely.

(For further details, readers can consult the full text of the bill on the Illinois General Assembly website, the RTA’s annual financial report, and the ABC 7 Chicago coverage of the House vote.)