Overview

• The House approved a Democratic-backed measure (108-95) to shift sales-tax allocations and generate roughly $292 million over five years, with an estimated $168 million available for this fiscal year.
• Senate Republicans, including Sen. Joe Pittman and Sen. Kim Ward, have resisted the proposal, citing concerns over SEPTA’s management, fare evasion and public safety and favoring use of the state’s rainy-day fund.
• SEPTA warns that without state funding by Aug. 14 it must begin 20% across-the-board service cuts on Aug. 24, followed by a 21.5% fare increase on Sept. 1 and deeper reductions by Jan. 1.
• Labor unions, business and civic leaders and Gov. Shapiro say unresolved funding would disrupt commutes for 800,000 daily riders, jeopardize school transport and hamper Philadelphia’s readiness for major 2026 events.
• SEPTA currently depends on about $1 billion in annual state aid (nearly 67% of its operating budget), underscoring the stakes of the impasse as the new fiscal year deadline nears.