he Pennsylvania Department of Transportation approved the Southeastern Pennsylvania Transportation Authority’s request to use up to $394 million in future state capital funds for operations. The decision will allow SEPTA to restore service and avoid planned cuts for the next two years.
The funds come from SEPTA’s fiscal year 2025–26 capital assistance allocation that has not yet been obligated. Officials confirmed that no money already committed to projects will be redirected. SEPTA must provide progress reports every 120 days on steps taken to increase efficiency.
The approval follows a court order requiring SEPTA to reverse service reductions introduced in August to address a $213 million budget deficit. Full service is scheduled to return by September 14, alongside a 21.5% fare increase.
SEPTA carries about 800,000 riders each weekday. Planned cuts could have cost the Philadelphia region billions in long-term earnings and tens of thousands of jobs, according to regional analysis. The temporary measure secures service through 2026, including during the U.S. Semiquincentennial and FIFA World Cup, but does not resolve the agency’s long-term funding needs.