Chicago – November 1, 2025
Illinois lawmakers have approved a $1.5 billion transit rescue plan aimed at stabilizing the Chicago Transit Authority (CTA), Metra, and Pace while avoiding statewide tax increases that were part of earlier proposals.
The measure, passed early Friday during the final hours of the fall veto session, is designed to close a projected $200 million budget gap that threatened major service cuts across the region’s transit systems next year.
Under the plan, the state will redirect sales tax revenue from motor fuel purchases and use interest earnings from the Road Fund to support public transportation. Chicago-area residents will see a 0.25 percentage point increase in the Regional Transportation Authority’s (RTA) sales tax, bringing it to 1% in collar counties and 1.25% in Cook County.
Tolls on northern Illinois highways will also rise, adding 45 cents for passenger vehicles, to finance a new capital fund for the Illinois Tollway.
Rep. Eva-Dina Delgado of Chicago, who co-sponsored the measure with Rep. Kam Buckner, described the bill as a “transformational investment in transit” that avoids “significant tax hikes on residents.” The plan follows years of debate as state officials sought long-term funding after federal COVID-19 aid began to expire.
Earlier versions of the proposal included new taxes on streaming services, entertainment tickets, and a “billionaire tax” on unrealized gains, but those provisions were dropped after facing pushback from Gov. JB Pritzker and lawmakers.
The revised bill passed the House 72–32 and the Senate 36–21, and now awaits Pritzker’s signature.
While most of the funding targets the Chicago metro area, downstate lawmakers criticized the plan for providing just $129 million to regional transit agencies outside the city: far less than the $200 million they requested. Some also warned that drawing money from the Road Fund could reduce funding for highway construction.
Labor unions endorsed the measure, emphasizing its role in protecting jobs and maintaining service stability. The legislation also lays groundwork for a new 20-member Northern Illinois Transit Authority, which will replace the current RTA by June 2026.
Without the new funding, transit officials warned that the region’s systems could face an $800 million shortfall by 2027, driven by declining ridership and the expiration of pandemic-era relief funds.
