Add this issuer to your watchlist to get alerts about important updates.
Last budget before operating fiscal cliff crisis foreshadows risk for regional transit’s future without a sustainable funding solution
CHICAGO, DEC. 19, 2024 – The Regional Transportation Authority (RTA) Board of Directors voted today to adopt the 2025 regional transit operating budget and 2025-2029 capital program, the last one supported by federal COVID relief dollars before an operating fiscal cliff threatens our region’s transit system and puts current double-digit ridership growth at risk.
The 2025 budget includes $4.147 billion in operating expenses for northeastern Illinois’ transit system, and a 2025-2029 Regional Capital Program of $9.469 billion, a significant increase from previous capital programs, in large part due to federal and local funds for the Red Line Extension being programmed.
Despite funding challenges, the region’s transit system continues to recover ridership, improve safety and security, and deliver transit options riders need. The system provides more than 1.2 million rides per day, with special events and off-peak trips outpacing pre-pandemic ridership numbers. Each agency has seen double-digit year-over-year growth, thanks to service expansions that would not have been possible without federal COVID relief dollars. In places where more service was added, riders have returned.
Looking ahead, 2026 will be a critical pivot point when all COVID relief money will be spent, and the region will face a choice. Absent sustainable funding for transit operations, the system falls off the fiscal cliff, dramatic service cuts lead to immediate drops in ridership, making the budget gap larger and harder to solve. Or we invest in our region, securing sustainable funding and ridership grows with more service on the street.
The budget gap, which equals 20 percent of the region’s operations budget, translates to a 40 percent cut in service across all operators, which would be devastating for the region and would set off a downward spiral that would be nearly impossible to escape. On the other hand, increasing annual operating funding by at least $1.5 billion a year from current levels allows the transit agencies to expand and improve service -- for example, expanding Pace Pulse, increasing frequency across Metra lines, and overhauling CTA’s bus service to work better for riders.
“In 2025, the region faces a critical decision for the future. Inaction will doom the Chicago region’s transit system to fall off the fiscal cliff and face cuts that make the system worse, or we can work together to achieve investment at levels that will unlock the region’s potential and meet our shared goals on equity, climate change, and rider experience,” said Executive Director Leanne Redden.
Chicago ranks fifth worldwide for worst congestion, and a 40 percent reduction in service would add 366 million vehicle miles to our already congested roads while costing the region $50 million a year in lost productivity. But importantly, it hurts our residents, costing them more than $1,600 a year and taking away precious time they could be spending with their families or just not sitting in traffic.
The greatest risk we face right now is inaction. The State must act in the first half of 2025 to secure the future of the Chicago region’s transit system. If Illinois does not act by spring 2025, CTA, Metra and Pace will be forced to shift their focus from improvements and expansion to prepare for drastic service cuts and fare increases to balance their budgets.
Influx of capital funding helps achieve regional goals, but need operational funds to support
The 2025 budget also details the 2025-2029 Regional Capital Program of $9.469 billion, which is $3.5 billion larger than the 2024-2028 Capital Program, in large part due to funds for the Red Line Extension. Major investment from state and federal legislation has been a good first step, but the unmet need remains great. The 10-year regional capital funding need for all the priority projects in this budget totals $42.7 billion, but the vast majority of that need (more than 75 percent) remains unfunded.
This budget continues to implement the RTA Regional Transit Strategic Plan, Transit is the Answer, which was adopted in February 2023. That plan set a vision of safe, reliable, accessible public transportation that connects people to opportunity, advances equity, and combats climate change. That vision and the plan’s principles of Equity, Stewardship, and Commitment to Change, guide this budget and the work of the regional transit system going forward.
The 2025 budget will continue to make great strides toward achieving the goals of the plan. For example, on the action item to “Accelerate the transition to a zero-emission regional transit system and prioritize communities burdened by poor air quality,” 82% of Pace’s 2025-2029 Capital Program will be used to replace diesel buses with electric buses. Between CTA and Pace, the regional capital program funds the purchase of nearly 300 electric buses. Major projects like the Red Line Extension will advance equity and ongoing work between the Service Boards and help to ensure the transit system is connecting people to opportunity.
The funds and years of work put in to make progress on investing in the region’s infrastructure cannot be fully leveraged without an investment in transit operations to keep the buses and trains running at the frequency riders need.
The budget and capital program were released for public comment on Nov. 15, and the RTA presented to all six county boards in the region and held a virtual public hearing on Dec. 3, 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 2025-2029 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 2025. Join the coalition and subscribe to the RTA newsletter for updates.
Contact:
Melissa Meyer, Communications Manager (312-913-3121, Melissa.Meyer@RTAChicago.org)
