Illinois Lawmakers Enact $1.5 Billion Annual Funding for Chicago Transit Overhaul

Illinois lawmakers have passed a landmark legislative package designed to fundamentally strengthen Chicago's public transit system, securing an annual allocation of $1.5 billion and introducing sweeping reforms. The initiative aims to move beyond temporary fixes, focusing on long-term sustainability and improved service quality for the Chicago Transit Authority (CTA), Metra, and Pace. Policy analyst Alex Armlovich highlighted the significance of the move, stating in a recent post, "> Chicago just joined NYC among transit systems strengthened, not just rescued."

The newly approved funding mechanism is projected to provide approximately $1.5 billion annually, addressing persistent budget shortfalls and enabling strategic investments across the region's transit agencies. This substantial commitment, primarily fueled by redirected motor fuel sales tax revenue, interest from the Road Fund, and an increased Regional Transportation Authority sales tax in the Chicago area, is intended to ensure the sustainability and growth of public transportation. The bill, Senate Bill 2111, was passed by both the House and Senate in late October 2025.

A critical component of the legislation involves fundamental governance reform, leading to the creation of the Northern Illinois Transit Authority. This new body, a stronger version of the existing RTA, will have enhanced control over fares and coordinate scheduling between the three service agencies. "Fragmented governance, uneven investment and post-COVID ridership losses have left transit struggling," explained bill sponsor Rep. Eva-Dina Delgado, D-Chicago.

The package also introduces a new focus on service quality and efficiency, aiming to improve reliability and rider satisfaction. Notably, fare integration across different transit modes is a key initiative, directly inspired by legislators' observations during a visit to Germany. Additionally, the legislation includes provisions to end parking mandates near transit hubs, promoting transit-oriented development and reducing reliance on private vehicles, as mentioned in Armlovich's analysis.

These wide-ranging changes, which also include a new capital program for tollway projects and a task force to address public safety issues on transit, are expected to transform Chicago's transit system. Sen. Ram Villivalam, D-Chicago, emphasized that the goal is to make the system "safe, reliable, accessible, and integrated," ensuring performance and funding for a "next level" system. The reforms are slated to take effect by June 1, 2026.