Lawmakers Approve $1.5B Transit Funding Package without Statewide Tax Increases
The $1.5 billion package redirects $860 million from motor fuel sales tax and raises Chicago-area sales tax to address a $230 million transit shortfall and avoid broad statewide tax hikes.
- On Friday, the Illinois General Assembly passed Senate Bill 2111, a $1.5 billion transit funding bill, with House vote 72-33 and Senate vote 36-21; Gov. JB Pritzker signaled he would sign it.
 - Transit agencies faced fragmented governance, uneven investment and post-COVID ridership losses that created a looming fiscal cliff and a $230 million funding shortfall.
 - The plan relies on $860 million redirected from Motor Fuel Tax sales tax, lawmakers raised the Regional Transportation Authority sales tax by 0.25 percentage points, and the Northern Illinois tollway surcharge adds 45 cents per toll for most two-axle passenger vehicles.
 - The package directs 85% of funds to northern Illinois and 15% to downstate Illinois—roughly $129 million annually—and creates the Northern Illinois Transit Authority with a 20-member board requiring a 15-vote supermajority.
 - As deficits swell, Republican lawmakers warned the plan shifts $478 million from downstate transportation projects and projected deficits of $834 million in 2027 and $937 million in 2028, while Illinois AFL-CIO President Tim Drea said it preserves about 15,000 transit jobs.
 
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* ICYMI: Lawmakers approve $1.5B transit funding package without statewide tax increases. Capitol News Illinois… A new transit funding bill passed Thursday night raises $1.5 billion for public transportation agencies, mostly in the Chicago area. The plan goes to the governor’s desk without any of the controversial statewide taxes on package deliveries, streaming or event [...]
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Instead of creating new statewide taxes, lawmakers chose to move around money that already comes into the state. The plan uses about $860 million from the state’s motor fuel sales tax, $200 million in interest from the state road fund, and allows the Regional Transit Authority to raise its local sales tax by 0.25 percentage points in the Chicago area.
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