Illinois lawmakers approved a $1.5 billion transit funding package designed to stabilize Chicago-area agencies and support downstate systems. The measure now awaits the governor’s signature.
The legislation redirects $860 million each year from motor fuel sales tax revenues to transit operations. It also dedicates nearly $200 million annually from interest earned on the state’s road fund. Lawmakers authorized a 0.25 percent sales tax increase in the Chicago region and toll adjustments expected to generate up to $1 billion for the Illinois Tollway.
The package creates the Northern Illinois Transit Authority to oversee the Chicago Transit Authority (CTA), Metra, and Pace. The new 20-member board will coordinate operations, improve regional planning, and ensure efficient use of funds. Lawmakers said the measure aims to prevent major service cuts and layoffs once federal pandemic relief expires.
Funding allocations also include $129 million for downstate transit systems to maintain essential service and plan long-term capital improvements. The bill takes effect June 1, 2026.
Transit officials said the legislation offers financial certainty for at least a decade, helping agencies maintain reliability while addressing lower post-pandemic ridership levels. The Regional Transportation Authority will also begin implementing fare and service coordination measures to improve efficiency across the region.