2026 regional transit budget available for public comment, lays out future with new sustainable funding

The RTA has released the Proposed 2026 Regional Transit Operating Budget and Five-Year Capital Program for download and public comment. The budget comes on the heels of landmark transit legislation passed on October 31 that will provide an estimated $1.2 billion in additional annual funding, once fully implemented beginning in late 2026, for operations and establish a new regional entity to streamline the rider experience.

The proposed 2026 regional budget details $4.352 billion in operating expenses for northeastern Illinois’ transit system, and a 2026-2030 Regional Capital Program of $9.246 billion focused on returning the system to a state of good repair, making all stations accessible, transitioning to zero-emissions, and providing limited expansions and upgrades.

How to comment

Download the budget and submit a public comment on the RTA’s budget webpage. The budget is open for public comment now through December 5, 2025. Public comments may also be submitted by emailing communications@rtachicago.org. The RTA will also hold a virtual public hearing on the budget from 4–6 p.m. on Thursday, December 4. Register for the public hearing here. The RTA Board of Directors will vote on the budget at its meeting at 9 a.m. on Thursday, December 18.

A new era for Chicago’s regional transit system

For the first time in years, the RTA enters a budget year not preparing for a looming crisis, but instead optimistic for the opportunities ahead. Senate Bill 2111 marks a historic investment that will protect the essential service of today and lay the foundation for the transit of tomorrow. This milestone fulfills the central goal of Transit is the Answer, the region’s 2023 strategic plan, which called for sustainable operating funding to protect and improve transit service.

The region will not begin to see new funding streams materialize until late in calendar year 2026 due to statutory implementation timelines and revenue remittance cycles, but 2026 will be a year of investment, stability, and planning for what is ahead. When full funding from SB2111 arrives, the RTA region can expect an additional $1.2 billion in annual new operating funding from a combination of sales taxes on motor fuel and an increase in the regionwide RTA Sales Tax. The current RTA board must vote to approve the 0.25% increase to the RTA sales tax within sixty days of June 1, 2026. That change is expected to generate an estimated $478 million annually for the system. Additionally, a significant portion of the existing state sales tax on motor fuel will be dedicated to transit operations throughout the state with an 85 percent to 15 percent split for the Chicago region and downstate, generating an estimated $731 million annually starting on July 1, 2026. Less than half of the new revenue will be available in 2026 and will begin to flow to the regional entity in Q3 and Q4 of 2026, requiring status quo spending for the first half of the year to manage cash flow.

A new 25 percent recovery ratio requirement—far below the previous highest in the nation ratio of 50 percent—is waived for 2026 and further reduced to 20 percent in 2030.

This budget ensures continuity across the region with no fare increases and no service cuts, but also supports Service Board improvements in reliability, safety, frequency and cleanliness while positioning the system for larger changes ahead.

Stronger, more efficient system will build on ridership momentum

The Chicago region already runs one of the most efficient transit systems in the nation, but the RTA required each Service Board to identify additional efficiencies this year prior to the passage of SB 2111, which calls for $46.9 million in efficiencies in the 2026 budget year. The RTA’s 2026 Budget Call also required the Service Boards to incorporate operating efficiencies into their proposed budgets. Pace identified $21.7 million in annual savings, CTA’s budget includes $70 million, and Metra identified $25 million in efficiencies for 2026.

A more efficient system means more dollars can go directly toward what riders want: more frequent and more reliable transit service.

With increased efficiency and quality of service, ridership has grown steadily across CTA, Metra, and Pace over the past several years, with double-digit percentage increases since the depths of the pandemic. Recovery has not been simple—travel and work patterns have changed, in some cases permanently—but riders have shown that when transit is reliable, frequent, and welcoming, they will return. That knowledge and the reality of a future with increased transit investment paint an optimistic picture for ridership growth in 2026 and beyond. The RTA system is expected to end 2025 with 384 million passenger trips and grow to 393 million trips in 2026. The agencies have experienced the strongest ridership momentum in places where service has visibly improved.

Figure 1. Annual Fixed Route Ridership, 2020-2025

RTA transitions to Northern Illinois Transit Authority

Aside from investment, SB2111 reorganizes the region’s transit system under the Northern Illinois Transit Authority (NITA), replacing the RTA on June 1, 2026—the legislation’s effective date—and taking on new responsibilities including setting fares, enhancing and coordinating service, overseeing long-term capital planning, and leading implementation of unified rider-focused tools such as more seamless mobile ticketing.

A new NITA board with 20 members will be seated by September 2026. Most NITA board members will concurrently sit on the boards of CTA, Metra, and Pace to enhance regional collaboration.

The transition to NITA will occur in phases. While statutory authority begins on June 1, 2026, full governance alignment, operational integration, and policy responsibilities will evolve as the NITA board is seated and long-term implementation plans are finalized.

Once the 2026 Regional Operating Budget is approved, the Service Boards will begin moving from protecting and maintaining service to improving service. Without the threat of the fiscal cliff, CTA, Metra and Pace can focus on providing the service riders deserve. Some changes have already been proposed, including CTA’s plans to provide 24-hour service on the Orange Line to Midway Airport, expand the Frequent Bus Network that provides service every 10 minutes or better to more routes, and a 50 percent increase in deep cleanings of bus and rail stations. Other possible improvements in 2026 could include accelerating operator hiring and training to support increased frequency, expanding the Access Pilot Program to CTA and Pace riders so more people experiencing low incomes can ride transit at a reduced fare, and expanding Access to Transit projects that improve sidewalks, crossings, shelters, lighting, and accessible station access.

The bill also calls for improvements that will take time to develop and execute, but planning for many of them will get underway in 2026.

Capital Program makes significant infrastructure investments

A world-class transit system requires more than stable operating funding. It depends on tracks and bridges that can support reliable train operations; signals and power systems that meet modern requirements; stations that are clean, customer friendly, and accessible; buses and railcars that are modern, reliable and comfortable; maintenance facilities that support efficient operations and new technologies; all leading to a system that meets the needs of riders.

The 2026–2030 Five Year Regional Capital Program totals $9.246 billion in planned improvements focused on returning the system to a state of good repair, making all stations accessible, transitioning to zero-emissions and providing limited expansions and upgrades. After accounting for CTA debt-service payments, the region has $8.269 billion for capital projects in the five-year program. The Capital program builds on sustained work to bring the transit system into a state of good repair and prepares the network for operational growth.

Major investments across CTA, Metra, and Pace will continue during the years covered by this capital program, including the CTA Red Line Extension, modernization of Metra’s rolling stock and bridges, electrification of CTA and Pace’s bus fleets and facilities, and continued work to make all CTA and Metra rail stations accessible. These projects will not only strengthen service reliability but enhance access to opportunities throughout the region and improve the day-to-day rider experience.

Despite these investments, the long-term capital needs of a large legacy transit system like Chicago are great. The 10-year regional capital funding need articulated in the report is $44.6 billion. RTA’s Strategic Asset Management group has calculated that it would take an annual investment of $4 billion per year over the next 20 years to bring the system into a state of good repair and additional funds are needed to expand and improve the existing system. The current five-year program averages less than $2 billion per year, leaving a big gap compared to the capital need.

This underscores that while SB2111 resolves the operating fiscal cliff, it does not resolve the region’s long-term capital funding gap. Continued state and federal partnership will be required to deliver a fully modern, accessible, and resilient transit system.

A shared victory for riders and the region

Over the past five years the RTA spent countless hours engaging and listening to riders and elevating their voices in the conversation. From April to October 2025, more than 20,000 letters were delivered to state lawmakers through the Save Transit Now campaign and thousands of residents used that platform to share personal stories and messages that ensured this issue could not be forgotten.

“The 2026 Operating Budget, Two-Year Financial Plan, and Five-Year Capital Program reflect a shift from crisis to renewal,” said RTA Executive Director Leanne Redden. “With sustainable operating funding secured and a strengthened framework for regional governance, the transit agencies can now focus on improving reliability, expanding service, modernizing infrastructure, advancing accessibility, and delivering a transit experience that is more seamless, intuitive, and equitable. 2026 will be a year of building the foundation for what comes next—with riders at the forefront.”