Illinois Legislature Approves $1.5B Plan to Overhaul Transit Governance

Illinois lawmakers have accepted a $1.5-billion plan to rescue the state’s transit companies from a looming finances disaster and overhaul how they’re ruled. 

Handed as Senate Invoice 2111 within the early hours of Oct. 31, the measure would change the Regional Transportation Authority with a brand new Northern Illinois Transit Authority overseeing CTA, Metra and Tempo and now awaits Gov. JB Pritzker’s signature. The measure’s predominant provisions are to take impact June 1, 2026.

The plan redirects income streams to cowl working gaps projected to achieve $230 million in 2026 and $834 million in 2027, whereas avoiding the statewide tax will increase debated earlier this yr. 

In keeping with the laws, about $860 million will come from gross sales tax collected on gasoline purchases, with one other $200 million from curiosity earned on the state Highway Fund. 

Chicago-area residents will even see a regional gross sales tax improve and better tolls, each tied to an expanded Illinois Tollway capital program that features hall modernization and bridge alternative work alongside I-294 and I-90.

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Downstate companies will obtain $129 million yearly—under the $200 million sought by rural operators—however the legislation marks the primary time Illinois has separated secure working funds from capital appropriations for transit techniques. 

Republicans criticized utilizing Highway Fund curiosity and motor-fuel tax receipts that historically help freeway tasks, warning of doable pressure on road-maintenance accounts. 

Rep. Ryan Spain (R-Peoria) stated throughout Home flooring debate that the measure “creates a perverse incentive … to not diminish the stability of the Highway Fund, not get tasks out the door … however proceed to construct up huge balances,” in keeping with reporting by Capitol Information Illinois.

Governance Shift Creates New Regional Authority

Governance modifications are intensive. SB 2111 renames and rewrites the RTA statute because the Northern Illinois Transit Authority (NITA) Act, consolidating regional planning features and authorizing common fare fee and coordinated scheduling throughout companies. 

The brand new 20-member NITA board will embrace equal illustration appointed by the Chicago mayor, the Cook dinner County Board president, the governor and the collective group of collar-county leaders. The act additionally establishes an Workplace of Transit Security and Expertise and a devoted legislation enforcement process power to supervise security and customer support enhancements.

“The Northern Illinois Transit Authority Act ensures that our area’s transit companies have the sources and accountability wanted to ship secure, dependable, and equitable service,” stated Sen. Ram Villivalam (D-Chicago), the invoice’s sponsor. Rep. Eva-Dina Delgado (D-Chicago), who led Home negotiations, known as it “a practical path to fiscal stability with out chopping service.”

Gov. Pritzker praised the package as a step towards “a world-class transportation system” and signaled he’ll signal it. 

CTA Appearing President Nora Leerhsen stated the measure means “no layoffs or service cuts” and can permit service additions and know-how investments. The RTA described the passage as a “landmark moment” that gives secure funding and long-term governance reform.

The Home accepted the measure 72-33 round 2:15 a.m., adopted by a 36-21 Senate vote about two hours later, capping greater than a yr of hearings and finances negotiations. Income transfers to NITA will start in fiscal 2026, with structural consolidation and board appointments accomplished by June 1, 2026. The Illinois Dept. of Transportation and the state Comptroller confirmed that guidelines for income assortment, auditing and distribution will probably be issued forward of the board appointment deadline.

Steady Income Stream

The legislation’s steady-funding provisions are anticipated to maintain regional capital applications on schedule and will speed up deferred upkeep and accessibility work as soon as working deficits are eradicated, in keeping with CTA, Metra and state paperwork reviewed by ENR. 

CTA and Metra every checklist multibillion-dollar backlogs, together with sign modernization, station upgrades, bridge rehabilitations and zero-emission bus fleet transitions. NITA will inherit the present five-year capital plans and has authority to revise mission prioritization as soon as it’s seated.

Toll changes enacted throughout the similar package deal will assist finance a brand new Illinois Tollway capital program—projected at roughly $2.5 billion by means of 2030—for interchanges, categorical lane conversions and bridge renewals. 

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Toll will increase of about 15% for passenger automobiles and 25% for vans are anticipated to generate practically $180 million yearly, in keeping with the state finances workplace. These proceeds will stay throughout the Tollway’s capital account however are tied legislatively to the transit-stabilization compromise that allowed SB 2111 to move.

Whereas companies and unions largely supported the measure, suburban and downstate lawmakers raised issues that the brand new NITA board might centralize an excessive amount of management in Chicago and that utilizing Highway Fund curiosity might constrain future freeway spending. 

Sen. Donald DeWitte (R-St. Charles) stated, “We’re robbing Peter to pay Paul.” Villivalam countered that the Highway Fund curiosity “has not been programmed for any building mission and can proceed to accrue past what’s wanted for upkeep.”

The laws’s key implications are continuity of contracting and procurement schedules, a predictable working base for companies managing ongoing building and a governance construction that integrates transit funding planning throughout a number of jurisdictions.