New details emerge on what $1.5 billion in investment could mean for your commute

Chicago's transit system is facing a fiscal cliff in 2026 that will mean drastic service cuts across CTA, Metra, and Pace. The RTA is advocating for additional funding to ensure our transit system can not only survive, but thrive. We need your help. Send a letter to your legislators at SaveTransitNow.org.

In March, the RTA, CTA, Metra, and Pace detailed what 40% service cuts would look like if the Illinois legislature does not identify a funding solution for the transit system by the end of this May. The consequences are many, and they are dire: one in five city workers could lose access to transit for their daily commute. All weekend Pace bus service would end. Metra headways could double. Nearly 3,000 transit jobs would be lost, and a devastating blow would be dealt to the region’s economy.

But the RTA has also explored what the system may look like if the legislature does act to fully fund transit. In January, the agency unveiled Transforming Transit, a rider-focused vision for a system with an additional $1.5 billion annual investment in operations. New details of how this investment would be used to respond to riders’ needs were explored during RTA’s March Board of Directors meeting, with presentations from CTA, Metra, and Pace.

What would $1.5 billion mean for your commute?

CTA

An increase in operations funding could bring a slew of improvements to CTA service, including 6-minute or better headways from 5 a.m. to 10 p.m. every day on all rail lines; 10-minute overnight headways on rail lines; 8-minute headways all day, every day on 47 bus routes; and 15-minute headways all day, every day on another 87 bus routes.

Additional capital funding—which is separate from operations and not directly impacted by the current operations funding crisis—could unlock even more service improvements for the CTA. Conversely, not investing in operations and cutting service will mean not leveraging the full potential of the nearly $3 billion in capital investments made over the last four years. Planned capital improvements that could dramatically impact ridership and operations include completing the 42 remaining stations in the CTA’s All Stations Accessibility Plan; building at least six new rail infill stations across the CTA; and completing a rebuild of the Forest Park branch of the Blue Line to eliminate slow zones.

Metra

New, dedicated operations funding would allow Metra to reimagine suburban rail service and continue to work toward a regional rail model, serving riders all day and on weekends in both directions of travel, rather than a traditional model that focused the majority of service during the morning and evening rush. An additional $1.5 billion invested in the system would allow Metra to implement up to a 50% increase in service, equating to a train coming every 30 minutes seven days a week on several lines.

Additional long-term investment in infrastructure upgrades would allow Metra to achieve what they are calling Regional Rail 2.0, unlocking:

Frequent all-stop service throughout the day on the inner portion of rail lines paired with all-day express service from downtown Chicago to outer-ring suburbs.
Building connections between Union Station and other downtown Chicago terminals to allow through-running of trains (for example, enabling a Rock Island Line train to run into downtown then continue as a Milwaukee District-North train)
Improved express service to O’Hare Airport

Pace

Pace is currently developing a network revitalization plan called ReVision, but it can only be put into action with $1.5 billion in annual operations investment. With extensive community input, Pace has arrived at two concepts to refine and ultimately implement ReVision. Both concepts would rethink suburban bus service offering. The Ridership alternative could increase job access by 86%. The Coverage alternative focuses on expanding Pace’s footprint that will bring 60 minutes or more frequent service on most routes bringing transit within ½ mile to 56% of residents.

Potential improvements featured in these scenarios include operating service on most routes seven days a week. Today, only 42% of Pace routes run all week long. Service could run from 5am to 10pm, rather than today’s service that largely runs from 6am to 7pm. Hours and frequency of service would be consistent throughout the week.

Additionally, both concepts continue to advance the Pace Pulse network, delivering arterial bus rapid transit (BRT) in key corridors throughout the region. As Pace finishes the public input process and moves forward one of the two alternatives in the Planning process, the additional funding will allow the agency to begin implementation of this network restructuring, bringing more transit to all six counties.

Additional capital funding could unlock even more service improvements for Pace. Infrastructure improvements that could dramatically impact ridership and operations include Pulse network expansion to 95^th Street, Cermak Road, Harlem Avenue, Golf Road, Touhy Avenue, North Avenue, Western Avenue, and a south extension on Halsted Street; passenger facilities supporting I-290/I-88 and I-294 Express Bus service; and additional Transit Signal Priority (TSP) corridors.

Systemwide impacts

The RTA is advocating for $1.5 billion in additional annual operations funding coupled with governance reforms that further empower the agency to streamline operations and the rider experience. With this funding and reform, the RTA could centralize fare purchasing and customer service with one app, launch a regional transit ambassador pilot program to improve customer service and safety, and hold the Service Boards accountable to clear service standards.

With this additional funding, the region will see significant gains in GDP, jobs, and income returned into our economy. For example, an average resident of the South Side of Chicago could enjoy access to 76% more jobs should this funding come to fruition and enable expansion of the transit system.

Transit is at a crossroads. How did we get here?

For years, the RTA has been sounding the alarm on the transit system’s impending fiscal cliff, which will hit in 2026 when emergency COVID relief dollars are fully expended. At that point, Chicago’s regional transit system will face a projected $771 million annual budget gap.

The RTA system is not alone in facing many of its current challenges. Large transit systems across the U.S. are facing proportionally similar funding gaps as they draw down remaining federal COVID relief funds, many facing shorter timelines than our region.

But the fiscal cliff was exacerbated by the pandemic, not caused by it. Chicago’s transit system has battled against chronic underfunding for decades—Illinois ranks last among peer states in funding public transit, covering only 17% of operating revenue in Chicago compared to 28% in New York, 44% in Boston, and 50% in Philadelphia. In fact, state support for our region’s transit operations has been cut over the last 10 years by more than $400 million.

And mandated programs like ADA Paratransit service and free and reduced fare programs are consistently, drastically underfunded. The state’s reimbursement for ADA paratransit service this year is $10 million, covering only 4% of the total cost of the program. The reimbursement for free and reduced fares is $20.9 million, covering only 14% of the total cost. This limited reimbursement forces agencies to use general operating revenue to cover the bulk of the cost of these mandatory programs. This shrinks the pool of funds that can be used to support frequent and accessible bus and train service across the region, as legislators and riders are consistently calling for.

Finally, high levels of inflation have also increased the cost to operate transit service, particularly labor expenses supporting frontline transit operators. The region’s operating budget has risen as each of the operating agencies have hired additional operators to expand service and keep up with rising demand. But expense growth still has fallen below the rate of the consumer price index. Even in a time of unprecedented inflation, the system has remained highly efficient.

RTA’s efficiency plan

With this chronic underfunding in mind, it’s clear why the Chicago transit system is already one of the most efficient in the nation, consistently ranking at or near the top of the list in key metrics like operating cost per passenger mile. The Chicago Metropolitan Agency for Planning’s (CMAP) Plan of Action for Regional Transit (PART) report, developed in 2023 at the request of the Illinois legislature, makes the point that Chicago’s system is more cost efficient than most peers.

That said, while seeking new funding for expansion, the RTA continues to strive for efficiency within the current system and has committed to savings and implementation of new revenue that will shave more than $100 million off the $771 million budget gap.

The agency’s efficiency plan includes a 10% systemwide fare increase, which would bring the region in line with many peers and would bring in $50 million in additional annual revenue. The negative impact of fare increases on people experiencing low incomes can be mitigated if the state provides funding for permanent expansion of the Access program across CTA, Metra, and Pace.

The remainder of the items in the plan are expense savings identified by the Service Boards, with the largest efficiencies focused in the areas of service delivery ($10 million saved), labor optimization including headcount and position type changes ($20.1 million saved), and real estate ($16.8 million saved). For example, an identified service delivery change is to better match train lengths to customer demand, and an identified real estate change is to acquire property rather than continuing to rent.

This work to identify and implement efficiencies is ongoing and will be part of the upcoming process to develop the region’s transit budget for 2026 and future years. Pursuing opportunities to reduce costs and increase efficiencies is core to the system’s short- and long-term financial planning.

Join the Transit is the Answer Coalition

Transforming Transit is the RTA’s vision for a world-class regional transit system with $1.5 billion in annual operating funding supported by a stronger RTA. To achieve this system, Illinois policy makers must reach a transit funding solution by this May to avoid service cuts of up to 40 percent. 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.