Transit Crisis: No Action Taken as Chicagoland Faces Looming Fiscal Cliff

Despite mounting warnings and the threat of massive service cuts and layoffs, Illinois lawmakers ended their spring session without passing a bill to address the financial crisis facing Chicagoland's public transit system.

A Senate-backed proposal-sponsored by Sen. Ram Villivalam (D-Chicago)-would have delivered over $1 billion in new funding to transit agencies. However, the House adjourned early Sunday without taking action, as proposed tax increases tied to the bill became too controversial to move forward.

As a result, the future of public transit in the Chicago region is now in limbo.

The Regional Transportation Authority (RTA), which oversees the CTA, Metra, and Pace, is staring down a projected $771 million annual shortfall. Without new revenue, RTA officials estimate up to 40% in service cuts, impacting thousands of daily riders.

In a recent hearing, Amalgamated Transit Union political director Clem Balanoff warned lawmakers that thousands of union bus drivers and train operators could face layoffs if a solution isn't reached.

The Senate's proposal sought to close the funding gap through a mix of statewide taxes-on deliveries, EV charging, and rideshares-while expanding certain Chicago taxes to the rest of Cook County and surrounding suburbs.

RTA agencies are now preparing their 2026 budgets, which, by law, can only include guaranteed funding. As RTA spokesperson Tina Fassett Smith noted, the timeline is tight, and the uncertainty is growing.

The current inaction leaves more than just a funding question unresolved. Major decisions about how the transit system is governed, reformed, and made more sustainable remain unaddressed.

While House Republicans have expressed openness to structural reforms in governance, they remain deeply resistant to any new revenue measures-especially amid a challenging state budget environment.

House Minority Leader Tony McCombie has been clear that transit reform is not optional, but lawmakers can simply not throw money at the problem. Lawmakers must return to the table with real solutions!