SPRINGFIELD – State lawmakers approved new funding for public transportation agencies without large statewide tax increases previously proposed.
Instead, the measure would be fueled by revenue sources that currently feed the state’s Road Fund and an increased sales tax targeted to the Chicago area.
The bill frustrated some lawmakers outside the Chicago area because of provisions that reroute money from the broader funding source of infrastructure projects.
The House voted 72-33 to pass Senate bill 2111 around 2:15 a.m. on Friday with only Democrats supporting the plan.
“That system has been running on borrowed time,” bill sponsor Rep. Eva-Dina Delgado, D-Chicago, said. “Fragmented governance, uneven investment and post-COVID ridership losses have left transit struggling with unreliable service, delayed trains, canceled routs and a looming fiscal cliff that’s threatening to derail it all without action.”
The Regional Transportation Authority, Chicago Transit Agency, Metra commuter rail and Pace Suburban Bus collectively face a $230 million funding shortfall in 2026 as pandemic relief money runs out. The funding deficit is projected to grow to $834 million in 2027 and $937 million in 2028. Without action in Springfield to plug that gap, the transit agencies have said they could be forced to cut services by 40%.
Republicans pleaded with the Democratic sponsors to pull the bill given the funding shortfall for the Chicago Transit Authority wouldn’t hit until the middle of 2026. But after more than a year of negotiations, Democratic leaders were ready to put the issue to rest.
The Senate followed with a 36-21 vote in favor of the bill around 4 a.m., concluding more than a year of negotiations.
“We are changing our public transit system for the first time in five decades to be safe, to be reliable, to be accessible, to be integrated; making sure that we got the performance and we got the funding that's needed to make a system of the next level,” Sen. Ram Villivalam, D-Chicago, said.
The plan goes to the governor’s desk without any of the controversial statewide taxes on package deliveries, streaming or event tickets that were part of previous bills. The House two days earlier had introduced a measure that taxed entertainment and billionaires’ investments — ideas Gov. JB Pritzker quickly shot down.
Read more: House transit bill ‘not going forward,’ Pritzker says as he opposes new revenue forms
The bill got back on track on Thursday following a day of negotiations between stakeholders, lawmakers and the governor’s office.
How it’s funded
The bulk of the funding, $860 million, would come through redirecting sales tax revenue charged on motor fuel purchases to public transportation operations. Another estimated $200 million would come from interest growing in the Road Fund — a state fund that is typically used for road construction projects but can also be used for transportation-related purposes under the state constitution.
The plan calls for raising the existing Regional Transportation Authority sales tax by 0.25 percentage points, to 1% in Lake, McHenry, Kane, DuPage and Will counties and 1.25% in Cook County. That tax hike will generate $478 million.
Drivers of passenger vehicles on northern Illinois’ toll roads will also have to pay 45 cents more per toll as part of a plan to create a new capital program for tollway projects. It will also increase by inflation each year. That will raise up to $1 billion annually, Marc Poulos, executive director of Local 150, told the House Executive Committee Thursday evening.
A coalition of labor unions that had generally opposed using Road Fund money for public transportation supported the latest bill.
“It is, you know, just vitally important that we keep 15,000 people in transit working,” Illinois AFL-CIO President Tim Drea, who led the labor coalition, told Capitol News Illinois. “Overall, it was a good bill that that we needed.”
The bill also calls for 25% of the systems’ revenue to come from fares. Historically, half of the funding was generated by the riders, but that requirement became unsustainable after the pandemic.
“The 50% fair box recovery ratio is way out of whack if you compare to other agencies, similarly situated agencies across the country,” Delgado said.
The bill and its associated tax and toll increases would not take effect until June 1.
Republicans feel slighted
Funding for downstate public transportation agencies, which face their own funding challenges as a sales tax-based formula becomes less lucrative, are set to receive $129 million annually – below the $200 million they had hoped for.
The move to direct most of the funding to the Chicago area left Republicans frustrated.
“I'm actually not thrilled that we are continuing on this transit bill, although I am happy that my constituents aren't going to be stuck with ridiculous taxes,” Rep. Regan Deering, R-Decatur, said. “But I just can't continue to vote for a piece of legislation that's screws them anyway.”
Downstate lawmakers also worried the bill tapping into Road Fund money removed a critical funding source for road construction projects.
“This transit funding bill creates a perverse incentive ... to not diminish the balance of the Road Fund, not get projects out of the door ... but continue to build up big balances in the Road Fund,” Rep. Ryan Spain, R-Peoria, said.
Sen. Don DeWitte, R-St. Charles, the Senate Republican’s transit leader, spoke in support of using interest from the road fund to pay for public transportation.
New transit board part of reforms
The reforms in the proposal are similar to what the Senate passed in May.
The bill would create the Northern Illinois Transit Authority, which would be a stronger version of the RTA and would have the ability to establish a universal fare system and coordinate scheduling between the three service agencies.
The board would be comprised of 20 members: five appointed by the mayor of Chicago, five by the Cook County Board president, five by the governor and five collectively by Lake, McHenry, DuPage, Kane and Will counties. That makeup has drawn criticism from some suburban leaders who fear it will limit their ability to affect public transportation decisions.
It would also create a law enforcement task force that will target hot spots for public safety issues on the transit systems. Other roles will be tasked with deescalating conflicts or seeking to address homelessness and mental illness – issues that can sometimes escalate into public safety issues.
The bill also blocks transit agencies from transferring operating dollars to capital expenses — a controversial move Metra recently proposed in its 2026 budget that raised red flags for several state lawmakers and RTA leaders.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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