Illinois law generates $1.5B to save public transit from fiscal calamity
[December 17, 2025]
By JOHN O'CONNOR
SPRINGFIELD, Ill. (AP) — Illinois' public transit systems got a $1.5
billion annual infusion on Friday as Gov. JB Pritzker signed a law
overhauling Chicago's web of buses and trains, sparing it from
devastating service cuts and pledging upgraded performance and
accountability.
Dozens of government, labor and transit leaders congregated for the
ceremony at Chicago's century-old Union Station, legendary architect
Daniel Burnham's vision for a centralized transportation hub through
which 35 million commuters still move annually.
The law, which takes effect in June 2026, raises sales taxes in
northeastern Illinois, slides into transit coffers a portion of the
sales tax on gasoline and interest earnings on the state's road
construction fund. The revenue infusion promises to claw the program
back from a so-called fiscal cliff caused largely by a drop off in
funding from federal pandemic relief programs that has threatened
metropolitan commuter lines outside of Chicago as well.
“Our state is tough and resilient and forward-looking. Far from heading
toward the abyss, as some predicted, we are on the verge of delivering a
world class transportation network,” Pritzker, a Democrat, said. “This
new law not only averts the ‘cliff,’ but preserves affordability and
makes transit safer and more reliable."
The law, which was known as SB2111, creates the Northern Illinois
Transit Authority as administrator of the region's transit programs with
responsibility for ensuring funding and comprehensive planning while the
Chicago Transit Authority, Metra commuter rail and Pace suburban bus
system focus on performance and reliability.

It promises safety improvements for a system often marred by crime and
which received a particular black mark — not to mention ire from
President Donald Trump — after a man on a downtown L train allegedly
doused a 26-year-old woman with gasoline and set her afire in November.
Illinois, one of eight states that charge sales tax on gasoline, will
generate $860 million in new transit funding by diverting gas sales tax
from the road-construction fund; and $200 million from interest
generated by the road fund, but that amount is expected to fall as
principal is rolled out for road building. Nearly $150 million of that
revenue is targeted for parts of the state outside Cook County, home to
Chicago, and the five counties surrounding it.
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A train pulls into the Clark Street and Lake Street Blue Line stop,
Nov. 18, 2025, in Chicago. (AP Photo/Erin Hooley, File)

Another $478 million is expected from a one-quarter percent increase
in the sales tax in Cook and suburban counties.
That part particularly riled Republicans who claim that suburban
residents are paying to fix Chicago's problems. State Senate
Minority Leader John Curran, a Republican from suburban Downers
Grove, said it also freezes out "suburban representation on transit
decisions.”
"Taxpayers deserve a long-term, fiscally-conservative plan that
includes the reforms needed to ensure a world-class, safe and
reliable system — not a Chicago takeover of suburban public
transit,” Curran said.
But advocates contended that the Northern Illinois Transit Authority
will have wide representation.
The authority will also govern funding allocation based on
performance; oversee capital and long-term planning to allow CTA,
Metra and Pace to concentrate on operation; provide for a powerful
executive director to hold employees accountable; and require
regular internal as well as periodic external audits.
Initiatives to improve safety will include cross-jurisdictional law
enforcement cooperation led by the Cook County sheriff; in 2027, a
“transit ambassador" plan will put unarmed staff on trains to assist
riders with safety issues while law enforcement and social services
will develop a long-term strategy for assistance; and there will be
a mobile application allowing riders to report problems.
By 2030, a single, integrated system will collect and process all
fares systemwide.
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