Illinois lawmakers have approved a $1.5 billion plan to rescue the state’s transit agencies from a looming budget crisis and overhaul the way they are governed.
Passed as Senate Bill 2111 in the early hours of Oct. 31, the measure would replace the Regional Transportation Authority with a new Northern Illinois Transit Authority that will oversee CTA, Metra and Pace and now awaits Gov. JB Pritzker’s signature. The main provisions of the measure come into force on June 1, 2026.
The plan redirects revenue streams to cover operating gaps that are projected to reach $230 million in 2026 and $834 million in 2027, while avoiding statewide tax increases debated earlier this year.
Under the legislation, about $860 million will come from sales tax collected on fuel purchases, with another $200 million from interest earned by the state Highway Fund.
Chicago-area residents will also see a regional sales tax increase and higher tolls, both tied to an expanded Illinois Tollway capital program that includes corridor modernization and bridge replacement work along I-294 and I-90.
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Central state agencies will receive $129 million annually, down from the $200 million sought by rural operators, but the law marks the first time Illinois has separated stable operating funds from capital allocations for transit systems.
Republicans criticized the use of Highway Fund interest and motor fuel tax receipts that traditionally support highway projects, warning of the potential strain on highway maintenance accounts.
Rep. Ryan Spain (R-Peoria) said during the House debate that the measure “creates a perverse incentive … not to decrease the Highway Fund balance, not to remove projects … but to continue to accumulate large balances,” according to Capitol News Illinois.
The change of government creates a new regional authority
The changes in government are extensive. SB 2111 renames and rewrites the RTA statute as the Northern Illinois Transit Authority (NITA) Act, consolidating regional planning functions and authorizing universal fares and coordinated scheduling among agencies.
The new 20-member NITA board will include equal representation appointed by the Mayor of Chicago, the Cook County Board Chair, the Governor and the Collar County Leaders Collective. The law also establishes an Office of Traffic Safety and Experience and a dedicated law enforcement task force to oversee safety and customer service improvements.
“The Northern Illinois Transit Authority Act ensures that our region’s transit agencies have the resources and accountability to provide safe, reliable and equitable service,” said Sen. Ram Villivalam (D-Chicago), the bill’s sponsor. Rep. Eva-Dina Delgado (D-Chicago), who led the House negotiations, called it “a pragmatic path to fiscal stability without cutting service.”
Governor Pritzker praised the package as a step toward “a world-class transportation system” and indicated he will sign it.
Acting CTA President Nora Leerhsen said the move means “no layoffs or service cuts” and will allow for added services and technology investments. The RTA described the passage as a “historic moment” that provides stable funding and long-term governance reform.
The House passed the measure 72-33 at about 2:15 a.m., followed by a 36-21 Senate vote about two hours later, capping more than a year of hearings and budget negotiations. Revenue transfers to NITA will begin in fiscal year 2026, with structural consolidation and board appointments completed by June 1, 2026. The Illinois Department of Transportation and the state Comptroller confirmed that rules for revenue collection, auditing and distribution will be issued before the board appointment deadline.
Stable income stream
The law’s ongoing funding provisions are expected to keep regional capital programs on schedule and could accelerate deferred maintenance and accessibility work once operating deficits are eliminated, according to CTA, Metra and state documents reviewed by ENR.
CTA and Metra each list multibillion-dollar backlogs, including signal modernization, station upgrades, bridge rehabilitation and zero-emission bus fleet transitions. NITA will inherit the current five-year capital plans and has authority to review project prioritization once settled.
Toll adjustments enacted within the same package will help fund a new Illinois Tollway capital program, projected at approximately $2.5 billion through 2030, for interchanges, express lane conversions and bridge renovations.
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Toll increases of 15 percent for passenger vehicles and 25 percent for trucks are expected to generate nearly $180 million annually, according to the state budget office. These revenues will remain within the highway capital account, but are legislatively tied to the traffic stabilization commitment that allowed SB 2111 to pass.
Although agencies and unions largely supported the measure, suburban and American lawmakers raised concerns that the new NITA board could centralize too much control in Chicago and that the use of Road Fund interests could limit future highway spending.
Sen. Donald DeWitte (R-St. Charles) said, “We’re robbing Peter to pay Paul.” Villivalam responded that interest from the Highway Fund “has not been scheduled for any construction projects and will continue to accrue beyond what is needed for maintenance.”
The key implications of the legislation are continuity of procurement and procurement schedules, a predictable operating base for agencies managing ongoing construction, and a governance structure that integrates transit investment planning across multiple jurisdictions.
