After years of looming fiscal crises and dire warnings about the future of public transportation in Chicago, Illinois Governor J.B. Pritzker signed a landmark transit bill at Union Station on December 16, 2025, offering what he called “a once in a lifetime investment that will benefit everyone, especially the overall Illinois economy,” according to NBC Chicago. The sweeping legislation, passed with mostly Democratic support, aims to modernize public transit not just in Chicago but across the state, with a particular focus on plugging a projected $1.5 billion annual funding gap that threatened to cripple the region’s transit agencies.
The new law, Senate Bill 2111, replaces the decades-old Regional Transportation Authority (RTA) with the Northern Illinois Transit Authority (NITA), a more powerful body with broad oversight of the Chicago Transit Authority (CTA), Metra commuter rail, and Pace suburban bus services. The NITA is tasked with implementing a unified fare system, coordinating schedules among the three agencies, and rolling out a single phone app for all transit users—changes designed to make the region’s complex transit network easier to navigate and more efficient for everyday riders. These reforms, as Senate President Don Harmon put it at the bill’s signing, “have been a long-time coming and faced too many delays. Today, those delays end.”
Funding for this ambitious overhaul will come from several sources, but crucially, it avoids a statewide tax increase—a sticking point for many downstate lawmakers. Instead, the bulk of the new money, about $860 million annually, will be redirected from the state’s fuel sales tax, a move that marks a significant shift away from road projects and toward public transportation. Another $478 million is expected from a 0.25% increase in the RTA sales tax, raising it to 1% in Lake, McHenry, Kane, DuPage, and Will counties, and to 1.25% in Cook County. There’s also a provision for a 45-cent toll increase on northern Illinois tollways, pending approval by the Illinois Tollway Authority, with future increases tied to inflation.
While the lion’s share of the funding will go to the Chicago region—85% of the redirected sales tax revenue and 90% of the interest generated in the Road Fund—downstate agencies will receive about $129 million annually. That’s less than the $200 million they had lobbied for, leading to frustration among some lawmakers outside the Chicago area. “I am happy that my constituents aren’t going to be stuck with ridiculous taxes,” said Rep. Regan Deering, R-Decatur, in October. “But I just can’t continue to vote for a piece of legislation that’s screws them anyway.”
Despite these concerns, advocates for downstate transit argue the law is still a win. Laura Calderon, executive director of the Illinois Public Transportation Association, stated, “This bill makes an historic investment in downstate operating assistance and stabilizes a fund that has been structurally under resourced and puts downstate transit on a more sustainable path.” Cook County Board President Toni Preckwinkle also praised the measure, calling it “essential to our economic vitality and quality of life.”
The urgency behind the legislation was clear: as pandemic relief funds ran out, the CTA, Metra, and Pace collectively faced a $230 million shortfall in 2026—a gap projected to balloon to $834 million in 2027 and $937 million by 2028. Without intervention, the agencies warned they could have been forced to cut service by up to 40%. Thanks to the new law, transit agencies have approved 2026 budgets without fare hikes or service cuts, a move Governor Pritzker said “not only averts the cliff but preserves affordability and makes transit safer and more reliable.”
Safety is a significant part of the new law. In addition to requiring updated safety plans for transit agencies, the legislation creates a law enforcement task force focused on addressing hot spots for public safety issues, including conflict de-escalation, homelessness, and mental illness on Chicago’s transit systems. Another innovative measure is the deployment of unarmed “ambassadors” on trains and buses, intended to provide a reassuring presence and help resolve issues before they escalate—an approach that reflects a growing recognition of the complex challenges facing urban transit beyond simple policing.
While many of the key funding and governance changes are set to take effect in June 2026, some of the most ambitious reforms will take longer to materialize. The law calls for a universal fare collection system to be in place by early 2030, and mandates that agencies follow a coordinated regional service plan by 2029. New development regulations are also included, designed to encourage residential and commercial projects near transit stations and eliminate minimum parking requirements near transit stops—policies intended to foster more transit-friendly communities and reduce reliance on cars.
The NITA board itself will comprise 20 members, but only five are required to come from outside Cook County, a point that has raised concerns among suburban lawmakers about diluted representation for their constituents. Senate Minority Leader John Curran, R-Downers Grove, was blunt in his criticism, saying, “Let’s call it what it is: a bailout for Chicago Mayor Brandon Johnson paid for by suburban taxpayers. It is going to make life even more expensive for suburban families with tax hikes and surcharges, while reducing suburban representation on transit decisions.”
Despite the political wrangling, the measure is widely seen as a watershed moment for Illinois transit. Lawmakers and advocates alike say the bill’s intent goes beyond simply keeping trains and buses running; it aims to reimagine public transportation as a driver of economic growth, environmental sustainability, and social equity. Among the potential new projects enabled by the law are expanded passenger train service to cities like Peoria, Moline, and Kankakee, as well as new CTA stations in Chicago. These expansions could help connect more communities and reduce transportation deserts in underserved areas.
There are also changes to how transit agencies are funded. Previously, they were required to generate 50% of their revenue from fares; under the new law, that requirement drops to 25%, giving agencies more flexibility to keep fares affordable and maintain service levels even if ridership fluctuates.
For everyday riders, the most immediate benefits will be the preservation of current service levels and fares, along with the promise of a more seamless, safer, and reliable transit experience in the years ahead. As Laura Calderone of the Illinois Public Transportation Association summed up, “Communities can stop worrying about whether service can survive from one year to the next and start focusing on serving people better.”
With the financial cliff averted and a new vision for public transit in place, Illinois is poised to embark on a new era of investment, innovation, and—if all goes as planned—renewed confidence in the power of public transportation to connect people and drive progress.
