Pace's rideshare program gets a lifeline after transit funding boost

A popular Pace paratransit program that subsidizes rideshare trips is getting a reprieve after the General Assembly approved a $1.5 billion transit funding package last month.

With no multimillion budget doomsday in 2026, Regional Transportation Authority directors hit the reset button for Pace, Metra and the CTA at a special meeting Thursday.

“No layoffs, no fare increases” and no service cuts, said Maulik Vaishnav, RTA senior deputy executive director of planning and capital programming.

“New funds will mean opportunities to advance further improvements in service quality and rider experience later this year as the new funds become available in the second half of this year.”

In 2026, the CTA will receive about $142 million in extra revenues, Metra will garner nearly $28 million more and Pace $19 million.

The Rideshare Access Program (RAP) offers subsidized Uber rides for passengers with disabilities. It’s attracted hundreds of users after its 2024 start. But a looming shortfall threatened its future and caused officials to reduce the cap on rides from 240 a month to 30, and raise fares from $2 to $3.25 in October.

The related Taxi Access Program was similarly affected. Myriad riders opposed the changes, saying they would not be able to travel to work, medical appointments or shop.

RTA planners now estimate an additional $56.7 million will be available in 2026 for RAP and TAP that could increase the cap.

“There’s enough funding available for RAP and TAP at this level for us to come back … at a future meeting to update the monthly ride cap,” Vaishnav told RTA directors. “This amount of funding will allow between 40 to 50 rides per month but it will require a separate action item later this year.”

Planners had projected a $230 million budget hole without the cash infusion. Now, a RTA sales tax increase and allocating a chunk of motor fuel taxes to transit should generate over $1.2 billion annually.

Another $180 million more a year from interest on the state’s Road Fund will be added to capital projects.

The legislation goes into effect midyear 2026, so the full scope of the revenue surge won’t be fully realized until 2027.

The board’s actions allow for the transit agencies to update their budgets before the RTA takes a final vote in December.

The budget crisis in 2026 was precipitated by COVID-19 federal aid, which compensated for decimated ridership, running out.

Gov. JB Pritzker still must sign the bill but has said he supports it.