Illinois Lawmakers Pass $1.5B Package to Boost Mass Transit
Illinois lawmakers have officially approved a $1.5 billion package to bolster mass transit capabilities in the Chicago area. The bill passed unanimously during the early hours of an overnight session, with the House voting at 2 a.m. and the Senate following at 4 a.m. This legislative decision addresses an urgent fiscal emergency that could have resulted in a significant reduction of bus and rail services for the Chicago Transit Authority, Metra, and Pace.
Key Features of the $1.5 Billion Transit Package
In the wake of mounting financial pressures, the amended transit package introduces several revenue-generating measures. Notably, it includes:
- Redirecting state sales tax on motor fuel to transit operations, generating approximately $860 million annually.
- Allocating all interest from the state’s $8 billion road fund to transit, providing nearly $200 million each year.
- Allowing the Regional Transit Authority to raise the sales tax by 0.25% in the Chicago area.
- No fare hikes for public transit in the first year after the package is enacted.
- Increasing tolls by 45 cents for passenger vehicles to potentially raise up to $1 billion for the Illinois Tollway.
- Implementing a 15-vote threshold for a new 20-member board set to replace the Regional Transportation Authority.
- Establishing an effective date of June 1, 2026.
Amendments and Legislative Process
This latest funding initiative left out several controversial tax proposals, including a 7% tax on streaming services and a “billionaire tax” on unrealized capital gains. Lawmakers representing downstate regions expressed concern that the bill does not adequately distribute funding outside Chicago.
Chicago state Representatives Eva-Dina Delgado and Kam Buckner championed the bill. They emphasized their commitment to finding solutions to the looming funding crisis over the past five years. After the House voted 72-32 and the Senate passed it with a 36-21 vote, Delgado noted the bill aims to prevent tax increases that would affect residents significantly.
Long-Term Implications for Transit Agencies
The transit agencies have struggled with reduced ridership levels since the pandemic, leading to serious financial shortfalls. While the current funding deficit has been lowered to $200 million for 2026, experts warn that it could escalate to nearly $800 million by 2027 without further state support.
Previously, a different legislative approach sought to generate $1.5 billion annually through delivery fees and increased rideshare taxes, but faced resistance from House Democrats.
Future Considerations
This historic measure marks a pivotal moment in Illinois transit funding, offering essential support to avoid drastic service cuts. The hope is that through this package, transit services can stabilize and gradually recover as ridership improves post-pandemic.
In addition to transit measures, lawmakers also addressed immigration policies. A new bill aims to restrict federal immigration officials from conducting deportations near sensitive locations, including hospitals and courthouses. This initiative embodies a broader intent to protect the rights and safety of residents.
Overall, the successful passage of the $1.5 billion transit funding package signals a significant step towards ensuring the viability and sustainability of mass transit in the Chicago area.
