RTA proposes reforms to prioritize capital projects, maximizing impact of funding

February 5, 2025

RTA is proposing a historic restructuring of the region’s transit governance to maximize the impact of new operating funding and ensure all riders experience an improved, reliable, efficient, integrated transit network. This is the third in a series of blogs exploring the RTA’s proposed governance reforms. These reforms include empowering the RTA to prioritize capital projects, maximizing the impact of state and federal funding.

On January 15, RTA released Transforming Transit, the agency’s vision for a world-class regional transit system with $1.5 billion in annual operating funding supported by a stronger RTA. While the impending regional operating budget gap is $770 million starting in 2026, independent agencies, including the Chicago Metropolitan Agency for Planning (the region’s designated planning agency for transportation) and advocates agree that $1.5 billion annually is needed from state and local sources to achieve the system riders deserve. With this additional sustainable funding, RTA is proposing centralizing fare policy, service standard setting, and capital project prioritization processes to improve regional rider experience while efficiently delivering on shared priorities.

Capital project prioritization: Maximizing the impact of state and federal funding

One of the tenets of a stronger RTA is for the agency to lead the capital project prioritization process for all transit projects in the region. Currently, CTA, Metra, and Pace each select and program infrastructure projects independently based on funding levels set by the RTA. The RTA evaluates the combined portfolio of projects as part of the budget process and votes annually on the 5-year capital program, but in accordance with the RTA Act, the RTA’s evaluations do not affect the distribution of funds. While the RTA can analyze projects and make recommendations to the Service Boards, the only mechanism to enforce change per the RTA Act is for the RTA Board to reject the entire capital program at the end of the year or vote down quarterly amendments. The regional vision and the project’s impact on key economic, climate, accessibility, and equity goals are inserted late in the process.

An empowered RTA as envisioned in Transforming Transit could develop the capital program throughout the year and take a regional approach to project selection, leading into the final capital program being brought to the RTA Board for adoption at the end of the year. The RTA would develop a transparent prioritization process for upfront evaluation of all regionally significant capital projects proposed within the region. The RTA would establish an associated process for public input and commit to publishing project scores on the RTA website.

CTA, Metra and Pace would report quarterly to the RTA Board on delivery of their capital programs, and the Board would vote to certify that the project delivery efforts are in substantial compliance or could vote to withhold future funding based on project delivery issues. The Board would consider challenges that affect delivery such as design issues, permitting problems, or funding delays with the goal of ensuring that the selected projects are being delivered to the region in the most efficient way possible.

Increasingly, competitive federal or state discretionary grant funding opportunities favor a regional vision and coordination. RTA’s regional transit strategic plan Transit is the Answer also set a goal for advancing transit friendly streets and bus rapid transit (BRT). We need a strong regional voice to ensure we’re partnering with cities, counties, the state, and roadway agencies to prioritize moving people—not just cars—in roadway projects.

A strong regional agency setting the vision and taking the lead on key federal and state grant applications will ensure that benefits are maximized—be that climate action through greenhouse gas reductions, investment dollars coming to the region, or being good stewards of our existing infrastructure. To fully leverage a transformational investment in transit service, a strengthened RTA would evaluate all major capital projects and distribute funding based on level of need and scoring of key metrics. This would enable a transparent regional approach to selecting and advancing priorities. These key metrics—like impact on accessibility, state of good repair, equity, and climate—would determine project selection and inclusion in the five-year capital program. A strengthened RTA would lead the early phases of planning, such as alternative analysis for projects that cross operators and geographic boundaries, which are often the most significant to the whole region and currently lack the coordination and advocacy required to win scarce federal grant dollars.

Proposed responsibilities include:

• RTA monitors the state of good repair of transit assets systemwide as a combined portfolio and tracks regional investment needs to inform the development of the five-year capital program
• RTA determines which state of good repair needs should be prioritized based on limited funding available
• RTA determines what projects to apply for the region and seek federal or state competitive grants rather than having multiple applications from the same region competing against each other
• RTA allocates capital funding to CTA, Metra, and Pace based on state of good repair need, prioritization of state of good repair need projects and prioritization of expansion/extension projects
• RTA leads early phases of planning for regionally significant transit projects on rail and roadway network
• RTA conducts an independent study of joint development opportunities at transit stations to potentially advance real estate projects in partnership with CTA, Metra, and Pace and partner with the private sector or other units of government

Join the Transit is the Answer Coalition

While Transforming Transit envisions service improvements with sustainable investment, Illinois policy makers must reach a transit funding solution by spring 2025 to avoid service cuts of up to 40%. The RTA is working with policy makers at all levels of government to develop sustainable funding solutions and improve the system for all riders. Join the Transit is the Answer Coalition to help bring about the legislative changes needed to support transit at this pivotal moment.

This is the third in a series of blogs exploring the RTA’s proposed governance reforms. Subscribe to the Regional Transit Update newsletter to learn more.