Lawmakers approve $1.5 billion transit funding package with 45 cent toll increase

SPRINGFIELD — State lawmakers approved new funding for public transportation agencies that avoided large statewide tax increases but included a massive 45-cent spike in tolls.

The measure saves Metra, Pace and the CTA from a looming shortfall with an influx of about $1.5 billion annually. It would be fueled by revenue sources that currently feed the state’s Road Fund and an increased sales tax targeted to the Chicago area.

Plans to raise tolls surfaced in earlier rescue proposals but drew sharp pushback from some suburban legislators and the idea was yanked. The last-minute revival came amid support from labor unions as the revenue will be directed toward new tollway projects.

The legislation also replaces the Regional Transportation Authority with a Northern Illinois Transit Authority that would have more control over Metra, Pace and the CTA. Collar County leaders have opposed the structure of the board, saying it would disempower suburban constituencies.

Gov. JB Pritzker, who has advocated for an updated tollway capital plan, signaled Friday his intent to sign the bill, noting in a statement that “Illinoisans deserve a world-class transportation system.”

The House voted 72-33 to pass Senate bill 2111 around 2:15 a.m. on Friday with only Democrats supporting the plan.

“That system has been running on borrowed time,” bill sponsor Rep. Eva-Dina Delgado, D-Chicago, said. “Fragmented governance, uneven investment and post-COVID ridership losses have left transit struggling with unreliable service, delayed trains, canceled routes and a looming fiscal cliff that’s threatening to derail it all without action.”

Republicans pleaded with the Democratic sponsors to pull the bill given the funding shortfall for the Chicago Transit Authority wouldn’t hit until the middle of 2026. But after more than a year of negotiations, Democratic leaders were ready to put the issue to rest.

The Senate followed with a 36-21 vote in favor of the bill around 4 a.m., concluding more than a year of negotiations.

“We are changing our public transit system for the first time in five decades to be safe, to be reliable, to be accessible, to be integrated; making sure that we got the performance and we got the funding that’s needed to make a system of the next level,” Sen. Ram Villivalam, a Chicago Democrat, said.

The plan goes to the governor’s desk without any of the controversial statewide taxes on package deliveries, streaming or event tickets that were part of previous bills. The House two days earlier had introduced a measure that taxed entertainment and billionaires’ investments — ideas Pritzker quickly shot down.

The bulk of the funding, $860 million, would come through redirecting sales tax revenue charged on motor fuel purchases to public transportation operations. Another estimated $200 million would come from interest growing in the Road Fund — a state fund that is typically used for road construction projects but can also be used for transportation-related purposes under the state constitution.

The plan calls for raising the existing Regional Transportation Authority 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 will generate $478 million.

Drivers of passenger vehicles on northern Illinois’ toll roads will also have to pay 45 cents more per toll as part of a plan to create a new capital program for tollway projects. It will also increase by inflation each year.

That will raise up to $1 billion annually, Marc Poulos, executive director of Local 150, told the House Executive Committee Thursday evening.

A coalition of labor unions that had generally opposed using Road Fund money for public transportation supported the latest bill.

“It is, you know, just vitally important that we keep 15,000 people in transit working,” Illinois AFL-CIO President Tim Drea, who led the labor coalition, told Capitol News Illinois. “Overall, it was a good bill that we needed.”

The bill also calls for 25% of the systems’ revenue to come from fares. Historically, half the funding was generated by the riders, but that requirement became unsustainable after the pandemic.

“The 50% fair box recovery ratio is way out of whack if you compare to other agencies, similarly situated agencies across the country,” Delgado said.

The bill and its associated tax and toll increases would not take effect until June 1.

Republicans feel slighted

Funding for downstate public transportation agencies, which face their own funding challenges as a sales tax-based formula becomes less lucrative, are set to receive $129 million annually — below the $200 million they had hoped for.

The move to direct most of the funding to the Chicago area left Republicans frustrated.

“I’m actually not thrilled that we are continuing on this transit bill, although I am happy that my constituents aren’t going to be stuck with ridiculous taxes,” Rep. Regan Deering, R-Decatur, said. “But I just can’t continue to vote for a piece of legislation that’s screws them anyway.”

Downstate lawmakers also worried the bill tapping into Road Fund money removed a critical funding source for road construction projects.

“This transit funding bill creates a perverse incentive … to not diminish the balance of the Road Fund, not get projects out of the door … but continue to build up big balances in the Road Fund,” Rep. Ryan Spain, a Peoria Republican, said.

Sen. Don DeWitte of St. Charles, the Senate Republican’s transit leader, spoke in support of using interest from the road fund to pay for public transportation.

New transit board part of reforms

The reforms in the proposal are similar to what the Senate passed in May.

The Northern Illinois Transit Authority would have the ability to establish a universal fare system and coordinate scheduling between the three service agencies.

The board would be comprised of 20 members: five appointed by the mayor of Chicago, five by the Cook County Board president, five by the governor and five collectively by Lake, McHenry, DuPage, Kane and Will counties. That makeup has drawn criticism from some suburban leaders who fear it will limit their ability to affect public transportation decisions.

It would also create a law enforcement task force that will target hot spots for public safety issues on the transit systems. Other roles will be tasked with de-escalating conflicts or seeking to address homelessness and mental illness — issues that can sometimes escalate into public safety issues.

The bill also blocks transit agencies from transferring operating dollars to capital expenses — a controversial move Metra recently proposed in its 2026 budget that raised red flags for several state lawmakers and RTA leaders.

• Daily Herald Staff Writer Marni Pyke contributed to this report.