How the NITA Act can advance a regional transit network across six counties

On December 16, 2025, Governor JB Pritzker signed the Northern Illinois Transit Authority (NITA) Act, a significant transit funding and reform package that will bring an estimated $1.2 billion in new annual operating funding to the system, marking a historic investment that will protect the essential service of today and allow for future service improvements and expansion. The new law means riders will not experience service cuts or fare increases in 2026 and instead will benefit from continued improvements to frequency, reliability, and safety. This blog is one in a series exploring how the NITA Act aims to improve our region’s transit network.

New operations funding distribution linked to service outcomes

Currently, operations funding is distributed to the Service Boards to first cover the cost of ADA paratransit service, and then based on a geographic formula originating from changes to the RTA Act in 1983. The NITA Act changes how operations funding will be distributed to better align funding with service outcomes.

For the first three years NITA will distribute a baseline level of funding to the Service Boards equal to the resources each received in the 2025 regional transit budget, after first funding NITA expenses, ADA paratransit service, and debt obligations. Any remaining operating funding will then be allocated to the Service Boards based on their shares of four performance-based factors of supply and demand: ridership, vehicle revenue miles, vehicle revenue hours, and passenger miles. The NITA Board of Directors can adjust the amount allocated by a supermajority vote if it finds that service is adversely affected by the new distribution.

Later, from 2030-32, another three-year transition period is established where operations funding will first cover ADA paratransit service, debt obligations, and NITA agency expenses; then NITA will allocate a baseline level of funding to each Service Board equal to the 2025 regional transit budget. Any amount remaining in the budget would then be distributed to the Service Boards based on compliance with the service standards outlined above. Then, from 2033 onward, NITA will fully transition to a service standards model for operations funding – linking funding to service need and delivery.

The long-term impact of this new structure can allow NITA to shape a transit network for riders that is more seamless across the six-county region.

Service standards set a framework for more frequent, reliable service

The NITA Act establishes new service standards to ensure that the region’s operators (Chicago Transit Authority, Metra, and Pace) are more accountable for delivering frequent and reliable service. Service standards are common tools to increase accountability and ensure reliability in transit systems across the country. How they are developed and implemented depends on the unique conditions of the areas where transit operates. Generally, service standards are used as performance measurements to transparently report what level of service certain areas can expect to receive based on demographics, land-use, and other characteristics. By linking service standards to operations funding, as described above, the NITA Act makes our region the first-in-the-nation to take this innovative approach to how the agency will plan and fund service delivery.

Under the NITA Act, service standards will include system performance data in areas like on-time performance, ridership, employee and customer security, cleanliness, customer satisfaction, and others. These performance measures are paired with geographic characteristics to inform a framework for how transit service should be deployed in a given area, including appropriate mode, frequency, network connectivity, coverage, and other considerations. Further linkages to land-use can ensure adequate transit supply is available where more housing and development is built. The Act also makes it easier to build more development near existing transit creating a virtuous cycle of more transit users. This new funding framework has the potential to be more dynamic than previous fixed formulas and will allow the regional agency to allocate funds to support various priorities, including service.

Timeline of NITA Service Planning

Under the NITA Act, the NITA Board of Directors will assume the responsibility for developing a regionally coordinated service plan beginning in December 2027. The process is established as follows and repeats each year:

December 15, 2027: NITA Board of Directors issues a request for proposed service plans from the Service Boards.
By March 31, 2028: Each Service Board presents preliminary service proposals in at least three public hearings throughout the region.
By June 30, 2028: Service Boards submit proposals to NITA Board of Directors.
No later than August 31, 2028: NITA Board of Directors adopts a final regionwide service plan for the next one to three years. Adjustments to this plan are made in conjunction with the adoption of the agency’s strategic plan.
Quarterly following adoption: NITA and the Service Boards meet to ensure operations meet service standards.

How to get involved

The transition will be an ongoing topic at transit agency board meetings throughout the year, which are open to the public and available online (RTA, CTA, Metra, Pace). Subscribe to RTA’s twice-a-month Regional Transit Update to stay on top of the latest developments.