RTA Board approves 2026 Regional Operating Budget and Capital Program with no fare increases or service cuts for riders

With fiscal cliff averted after signing of Northern Illinois Transit Authority Act, regional transit budget highlights service enhancements, safety improvements, transition to new regional agency

CHICAGO, DEC. 18, 2025 - The Regional Transportation Authority (RTA) Board of Directors voted today to adopt the 2026 regional transit operating budget and 2026-2030 capital program. After years of the agency and advocates ringing the alarm on a fiscal cliff when COVID-19 relief funds ran out, the Illinois General Assembly passed Senate Bill 2111 during the fall veto session, and Gov. JB Pritzker signed the bill into law on Dec. 16. The Northern Illinois Transit Authority (NITA) Act will bring an estimated $1.2 billion in new annual operating funding to the system.

"For the first time in years, the RTA is not preparing for a looming crisis, but instead optimistic for the opportunities ahead," said RTA Executive Director Leanne Redden. "This is a historic investment that will protect the essential service of today and lay the foundation for the transit of tomorrow."

The 2026 budget includes $4.352 billion in operating expenses for northeastern Illinois' transit system, and a 2026-2030 Regional Capital Program of $9.246 billion. 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.

"The transit system arrives at this moment because riders, transit operators, advocates, local leaders, business and civic institutions, and elected officials insisted that transit is essential to the region's future," said RTA Board Chair Kirk Dillard. "Thank you to everyone who fought for transit over the last five years and those who helped get a solution across the finish line. In doing so, Illinois became one of the only states in the nation-alongside New York-to take decisive action to structurally avert the post-pandemic fiscal cliff facing many large legacy transit systems. The Chicago region now can set an important example across the country, showing what public transit can be with proper investment."

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. Pace identified $21.7 million in annual savings through service efficiencies, office space consolidation and converting the South Division garage. CTA identified up to $70 million in efficiencies, cost avoidance savings, and sustainable revenue growth in areas like scheduling and advanced data usage. Metra identified approximately $25 million in efficiencies for 2026, with a focus on fuel efficiencies, as well as administrative and operational cost savings. 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. 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, showing that making investments in transit service has strong returns and the transit agencies expect that trend to continue as investment grows.

RTA transitions to Northern Illinois Transit Authority

Aside from investment, newly signed state statute Public Act 104-0457, or the NITA Act, reorganizes the region's transit system under a new regional authority that replaces the RTA on June 1, 2026 - the legislation's effective date - and takes 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, with five members appointed by the Governor, five by the Mayor of Chicago, five by the President of the Cook County Board, and five by the county chairs of the collar counties of DuPage, Kane, Lake, McHenry, and Will. A Chair and executive director will be selected by the NITA Board and must be confirmed by the Illinois Senate. Most NITA Board members will concurrently sit on the boards of either CTA, Metra, or Pace in a way that ensures increased regional collaboration.

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 expand their bus and rail frequent 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 NITA Act calls for improvements that will take time to develop and execute, but planning for many of them will get underway in 2026. For example:

• Affordability improvements such as the development of a unified fare system to make traveling across CTA, Metra and Pace simpler, along with income-based fare programs and fare capping will ensure riders do not pay more because of when or how they travel.
• Capital planning and prioritization will be coordinated regionally to align investments with the greatest impact on reliability, accessibility and future demand.
• Safety improvements including establishing a regional Transit Ambassadors program, hiring a Chief Transit Safety Officer, and forming a NITA Law Enforcement Task Force will explore best practices for improving security on the system.
• Accessibility improvements like the establishment of a Regional Dial-A-Ride program and development of a Language Access Plan and forming an ADA Advisory Council will ensure the needs of all riders are being heard.
• Accountability standards for CTA, Metra and Pace will directly tie funding to performance through a service standards model that measures metrics such as on-time performance, ridership, equipment failure rates, crowding, cleanliness and customer satisfaction.
• Regionally coordinated service planning will improve connections between modes and operators and minimize gaps in service across the region.

Overall, these new initiatives, which will help the region meet objectives on safety and accessibility, could cost between $240 million to $310 million when fully implemented, which would come out of the regional operating budget in future years. For a full review of what is included in the NITA Act, see a November 2025 memo summarizing the legislation and timeline of future milestones.

Capital Program makes significant infrastructure investments

The 2026 budget also details the 2026-2030 Regional Capital Program of $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.

Major investments include funds for 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 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. The NITA Act does include new capital revenue in the form of interest on the Road Fund balance, which means an additional $180 million for the RTA region annually. That increase is not reflected in this budget but will be added to the program through the capital budget amendment process in 2026.

The budget and capital program were released for public comment on Nov. 14, and the RTA presented to all six county boards in the region and held a virtual public hearing on Dec. 4, which followed similar hearings and comment periods by CTA, Metra and Pace for their respective budgets. These materials and activities are documented on the RTA's website, and the 2026-2030 Capital Program is also available on RTAMS, the RTA's mapping and statistics website.

Since the adoption of Transit is the Answer, the RTA has launched and grown a coalition of transit supporters. The Transit is the Answer Coalition meets quarterly with more than 100 members to discuss key initiatives of plan implementation, including safety and security, affordable fares and more. These conversations have directly guided programs as they have been developed and will continue in 2026. Join the coalition and subscribe to the RTA newsletter for updates.