After the Illinois General Assembly locked in new funding sources for mass transit agencies in the state, fare rates have been set for Chicago-area agencies.
Metra, Pace and CTA will be folded under the umbrella of the newly formed Northern Illinois Transit Authority moving forward, and all three agencies have confirmed this week that they will not implement fare hikes for the year 2026.
Originally, the agencies had indicated that fare hikes, service cuts and layoffs were all on the table if the state legislature didn’t pass funding to help address a looming “fiscal cliff,” brought on by the exhaustion of COVID-era funding from the federal government.
Metra was the latest agency to approve its new budget for 2026, with the $1.2-billion budget approved by its board on Thursday.
That budget includes a $513.3 million capital plan that invests in bridges, stations and updating its stock of railcars.
According to a press release, Metra announced that some of the new funding from the state would be used to eliminate a proposed fare increase.
“Modest service increases” and a significant construction project on the Metra Electric Line are among the funded items in the budget approved Thursday, according to the agency.
The CTA also announced in its budget approval Wednesday that there will be no fare increases, and there will be no layoffs in the new year thanks to the new funding formula.
“This budget builds upon the tremendous progress we’ve made over the past year, and sets us on a path towards continued growth,” said CTA Acting President Nora Leerhsen in a statement. “Getting to this point is the culmination of our commitment to delivering the kind of transformational public transit service that our region has never experienced before. I want to thank our dedicated workforce, our community of riders and transit advocates, and state and local elected officials for their support, and I look forward to working together as we chart a vibrant transit future in the years to come.”
A capital improvement program was also approved, which will help fund the extension of the Red Line from 95th Street to 130th Street.
It will also continue to replace elevators and escalators in the CTA system, and pay for the purchase of more than 400 new railcars and more than 200 new buses over the next five years.
The CTA also plans to expand 24/7 rail service on select lines, and to expand their Frequent Bus Network.
Finally, Pace approved its new budget Wednesday, with no fare hikes included. There will also be an increase of nearly 10% in suburban bus service, and more on-demand services will be implemented by the agency.
“This new legislation not only stabilizes transit funding, but it also allows us to plan confidently for the future,” said Pace Chairman Rick Kwasneski. “Our riders can count on continued service improvements and a system that is both sustainable and fiscally responsible.”
Pace plans to transition to a zero-emissions fleet by 2040.
The new transit bill came together after a marathon negotiation during the fall veto session, which saw different tax revenue streams added and deleted from the final text. Originally the bill was set to include taxes on streaming services like Netflix, a $5-per-ticket tax on concert and sporting event tickets, and a tax on unrealized capitals gains, but those sources were all cut from the final bill.
Instead, tolls for passenger vehicles will increase by 45 cents when the measure goes into effect. Tolls for commercial vehicles will increase by 30%, according to the bill. Those increases will be used to help maintain Illinois Tollway roads.
The measure also shifts motor fuel sales tax revenues into mass transit, with annual interest accrued by the state’s Road Fund also being put toward transit.
The transit funding proposal also grants authorization for the newly formed NITA to assess an additional 0.25% sales tax in the collar counties.
The bulk of that revenue would go into Chicago and the collar counties, while a percentage will also be earmarked for transit projects in areas outside of that area, according to the legislation.
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