How the NITA trailer bill and 2027 state budget will impact Chicagoland transit

On May 31, 2026, the eve of the Northern Illinois Transit Authority (NITA) Act (Public Act 104-457) taking effect, the Illinois General Assembly passed trailer legislation (HB2335 SA3 and SA4) to streamline the transition to the new agency and a state budget including the expected new transit operating and capital revenue from the landmark law. The trailer bill and state budget now await the Governor’s consideration.

The next day, June 1, the RTA Board voted to approve a 0.25% increase to the regional sales tax that supports transit operations in metro Chicago and marked the beginning of a new chapter for regional transit.

Trailer bill features minor policy changes to enhance agency transition

The trailer bill makes no substantive changes to the new operating revenue sources included in the NITA Act (dedication of sales tax on motor fuel to transit operations and 0.25% increase in regional sales tax) or the new capital revenue source (interest on state road fund and state construction account balances) for the Chicago region. There is a new provision in the legislation that is intended to prevent the sales tax on motor fuel for both NITA and downstate transit operations from being swept to another fund, adding a layer of protection for transit operations funding.

The trailer bill did include technical changes to policies and deadlines intended to streamline the agency transition that is now underway, including the following key changes:

The new NITA Board is seated on September 1, 2026, and the new chair is elected at the September meeting. This update aligns the NITA Board’s timeline with CTA, Metra, and Pace Boards.
The deadline to pass the FY2027 regional transit budget is corrected to the end of the calendar year on December 31, 2026, as was the case under the RTA Act.
The legislation includes flexibility for achieving the $46.9 million in efficiencies by the transit agencies called for in the NITA Act from service-delivery savings, labor optimization, and real estate.
The system’s waiver from the new 25% recovery ratio requirement that was instituted in 2021 is extended to include the fiscal year 2027 budget.
The final report featuring safety recommendations from the NITA Law Enforcement Task Force is now due to NITA by March 1, 2027.
NITA must implement the transition plan developed by IDOT and a third-party consultant by ordinance by September 30, 2027.

See RTA’s updated legislative summary of the NITA Act to see the full list of changes in the trailer legislation and how it affects the ongoing agency transition.

State budget puts NITA in position to deliver on promised benefits

Although the new revenue sources from the NITA Act are fully maintained in the trailer legislation and the system still expects to receive the funding amount projected when the NITA Act passed, the SFY27 budget included some changes to transit funding. Lawmakers diverted $150 million from the sales tax on motor fuel—a key new funding source for transit operations—to address budgetary needs for SFY27 due to higher-than-expected gas prices. Legislators expect that the projected amount of sales tax on motor fuel will remain consistent with projections in October of 2025—approximately $730 million for 2027.

The new agency will be in strong position to deliver on promised benefits to riders and taxpayers. But NITA will not receive additional revenue from high gas prices because the state is diverting portions of that revenue to balance its budget and supplement the road fund.

The 2027 budget includes all transit appropriations at expected levels for this year, including $1.341 billion for the Public Transportation Fund ($750 million increase from previous year), $23 million for reduced fares, and $11.5 million for ADA paratransit.

Starting this summer, riders will begin seeing the benefits of new funding through more security personnel, expanded service, improved fare programs, and better customer information across the region. The RTA Board is scheduled to meet on July 16 and August 20 before the new NITA Board is seated on September 1.