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Illinois Lawmakers Focus on Closing $770M Gap for Chicago Transit

Consolidation proposals for transit agencies with potential service taxes aim to plug the shortfall before routes are slashed.

Overview

  • The Illinois General Assembly is racing to meet the May 31 deadline on a balanced budget that must fill a $770 million funding hole for CTA, Metra and Pace as federal COVID-19 grants expire.
  • Lawmakers are weighing a plan to merge the CTA, Metra, Pace and the RTA under a single governance board to streamline oversight and make transit reform a condition of any bailout.
  • The Regional Transportation Authority warns that without new state revenue, transit agencies could cut up to 40 percent of service and lay off hundreds of staff next fiscal year.
  • Mayor Brandon Johnson has pressed for an “equitable distribution” of resources and supports amendments to prepaid cellphone taxes and an extension of the 911 surcharge to generate millions more.
  • Republican legislators have flagged potential sales taxes on consumer services—ranging from streaming platforms to rideshares and haircuts—as a way to help close the transit funding gap.