RTA moves forward on sales tax increase to boost transit
Regional Transit Authority directors approved a sales tax increase Monday that will generate about $553 million more for Metra, Pace and the CTA in 2027.
The move “represents one of most significant actions that this board will take to support future public transportation in northeastern Illinois,” RTA Executive Director Leanne Redden said.
The RTA sales tax will rise by 0.25 percentage points on Aug. 1 and should result in $199 million more revenue this year. That means someone who spends $1,000 in the region on purchases would pay $2.50 more in RTA sales tax as of August.
The change was triggered by passage of the Northern Illinois Transit Authority Act which went into effect Monday, replacing the RTA with a new NITA board who will take office Sept. 1.
The legislation was intended to fill a major COVID-19-related budget shortfall looming in 2026 and reform how transit operates in the region.
Previously, officials had projected a higher sales tax would produce about $478 million annually. Revenues are “expected to come in higher and we’ll continue to monitor that,” Redden said.
Deliverables in 2026 include more police on trains, expanded service, and enhanced fare programs.
“This is a major piece of finally getting the operational funding that region's transit riders have so deserved for decades,” RTA Chairman Kirk Dillard said. He called the board’s vote a “procedural” one, aligning with the new law.
Upgrades this year include:
• Providing a stop at the Obama Presidential Center, which opens June 19, on the CTA’s No. 10 Express Bus that travels between downtown and the Griffin Museum of Science & Industry.
• Adding service on Pace bus routes in the suburbs and Metra Electric and Rock Island lines.
• Expanding the Access Pilot reduced fare program for qualifying low-income riders on Metra to Pace and CTA riders this fall. For information, visit rtachicago.org/riders/access.
• Freezing fares until at least July 1, 2027.
Longer term, “this funding is what will allow the region to move toward meaningful service expansion,” Redden said.
The incoming NITA board will consist of 20 members, with five each appointed by the governor, Cook County Board president and Chicago mayor. Collar County board chairs get one appointment each.
The terms of current RTA, Metra, Pace and CTA board members expire Sept. 1.
“The law goes into effect today but the transition will be occurring over the summer,” Redden noted.
Riders “will see no massive changes in their lives, other than later this fall they’re going to see improvements in frequency, cleanliness, and safety,” Dillard said.
He encouraged NITA leaders to retain current RTA employees, saying the staff is “world class,” and the agency’s fiscal accomplishments “are pretty stellar in terms of financial credibility with Wall Street.”
The NITA act will pump about $1.2 billion more in annual operating funds into the region by moving $731 million of state gas sales tax revenues to transit in addition to the sales tax boost.