The Illinois General Assembly has approved a significant transit funding bill aimed at addressing a projected shortfall for public transportation agencies. Known as the Northern Illinois Transit Authority (NITA) Act, this legislation tackles a budget gap exceeding $200 million for the Regional Transportation Authority (RTA).
Key Provisions of the Transit Funding Bill
State lawmakers supported the new funding model without introducing major statewide tax increases. Instead, the financing will rely on:
- Redirected revenue from the state’s Road Fund
- An increase in sales tax, targeting the Chicago area
The House approved the measure with a 72-33 vote early Friday, while the Senate followed suit with a 36-21 vote. Democrat representatives were the sole supporters of the bill, highlighting a split in political backing.
Challenges and Criticisms
Some lawmakers, particularly those outside Chicago, expressed concerns over the bill’s funding allocations that they believe detract from broader infrastructure projects. Key issues raised include:
- Projected funding shortfalls expected to reach $834 million by 2027 and $937 million by 2028
- The potential for a 40% cut in services without additional funding
Opposition was voiced by Republicans, who argued that a funding increase for the Chicago Transit Authority (CTA) would not be necessary until mid-2026. Nevertheless, after more than a year of negotiations, Democratic leaders opted to move forward with the proposal.
Funding Breakdown
The transit funding bill comprises several components designed to generate substantial revenue:
- $860 million through redirected motor fuel sales tax revenue
- Approximately $200 million from interest in the Road Fund
- A 0.25 percentage point increase in the Regional Transportation Authority sales tax, yielding an estimated $478 million
- Increased toll fees for passenger vehicles on northern Illinois toll roads, generating up to $1 billion annually
These changes are set to take effect on June 1.
Impacts on Local Transit Authorities
Funding for downstate transportation agencies will receive $129 million annually, falling short of the requested $200 million. Concerns remain that redirecting the Road Fund will hinder vital road construction projects.
The NITA Act also establishes the Northern Illinois Transit Authority, tasked with unifying fare systems and enhancing service coordination across transit agencies. This new authority will include representatives from various local governments to ensure comprehensive governance.
Support and Future Outlook
The passage of this bill marks a pivotal moment for public transit in Illinois, presenting both challenges and opportunities. Key stakeholders, including union leaders and transportation officials, have praised the collaborative effort that led to this legislation.
PACE’s Executive Director emphasized that the new funding would bolster services and expand transit operations. The RTA also stated that these reforms would contribute significantly to the sustainability of the public transit system in the region. This legislative win aims to ensure that public transportation in Illinois remains safe, reliable, and accessible for all residents.
As the state prepares to implement these changes, transit operators and riders eagerly anticipate an improved public transportation landscape in northeastern Illinois.
