Illinois Governor Signs $1.5B Transit Bill Without Statewide Tax Hikes

Transit Funding Bill Averts Service Cuts for Chicago Area Systems

Governor JB Pritzker signed Senate Bill 2111 into law on December 16, 2025, delivering approximately $1.5 billion in annual transit and infrastructure funding without creating any new broad-based statewide taxes.

The legislation creates the Northern Illinois Transit Authority, known as NITA, which will replace the Regional Transportation Authority beginning June 1, 2026. The new authority will oversee Chicago Transit Authority, Metra commuter rail, and Pace Suburban Bus operations.

The funding package includes:

• $860 million from redirecting existing sales tax on motor fuel purchases
• $478 million from an authorized 0.25% sales tax increase in the Chicago region
• $200 million from interest generated in the state Road Fund

The bill ensures no fare increases and no service cuts in 2026. Transit officials said the measure prevents a fiscal cliff that threatened $230 million in funding shortfalls for the combined transit agencies.

New Regional Authority Expands Power

The NITA board will consist of 20 members with representation from outside Cook County. The law gives NITA expanded authority to:

• Set universal fare policies across the regional transit system
• Coordinate service planning and schedules
• Oversee long-term capital projects
• Implement unified mobile ticketing by February 2030

Senate President Don Harmon said the law marks a turning point for Illinois transit. "This law puts people first, strengthens our economy and moves our state forward—together," Harmon said at the signing ceremony.

Downstate Funding Remains Limited

Many downstate lawmakers criticized the funding distribution, noting that the plan provides only $129 million for transit agencies outside of Chicago and its suburbs. Those agencies had advocated for $200 million in annual operating assistance.

Republican lawmakers argued the new formula bails out Chicago at the expense of downstate communities. Rep. Regan Deering, R-Decatur, said, "I am happy that my constituents aren't going to be stuck with ridiculous taxes. But I just can't continue to vote for a piece of legislation that screws them anyway."

Illinois Public Transportation Association head Laura Calderon defended the measure, saying it "makes an historic investment in downstate operating assistance and stabilizes a fund that has been structurally under resourced."

Transit Safety and Service Improvements

The law requires NITA to develop a service plan by December 2027 that addresses frequency, reliability, and coordination among the transit agencies. The law also calls for new transit safety measures including:

• A transit ambassador program to be deployed by July 2027
• A law enforcement task force to target public safety hot spots
• Enhanced coordination with law enforcement agencies

Chicago Federation of Labor President Bob Reiter called the bill "a testament to our collective commitment to delivering positive change for Illinois working families."

Long-term Goals Include Expansion

Lawmakers said the bill aims not just to fund existing operations but to expand public transportation across Illinois. Potential new projects could include:

• Passenger train service to Peoria, Moline and Kankakee
• New Chicago Transit Authority stations
• New development regulations to incentivize residential and commercial projects near transit stations

The law also ends minimum parking requirements near transit stops.

Tollway Revenue Provisions

The legislation includes revenue measures supporting a new Tollway capital program. Drivers of passenger vehicles on northern Illinois toll roads could pay 45 cents more per toll, though this must still be approved by the Tollway board. Tolls would also increase by inflation each year.

The law raises the existing RTA sales tax by 0.25 percentage points to 1% in Lake, McHenry, Kane, DuPage and Will counties and 1.25% in Cook County. That tax hike is expected to generate $478 million annually.

Union Support

For the first time in decades, labor unions from every corner of the rail industry came together to support the measure. Tim Drea, President of the Illinois AFL-CIO, said "Today's bill signing isn't just about keeping our buses and trains running, it's about protecting the people who keep our entire transit system moving."

Brian Shanahan, Railroad Coordinator for Machinists International, added, "This law reflects that shared commitment to strong, reliable transit essential for our economy and our communities."