CHICAGO — Transit agencies across the Chicago region, including CTA, Metra, and Pace, are being asked to prepare dual budget plans for 2026 — one that assumes current service levels and another that anticipates deep service cuts due to looming financial shortfalls.
The request comes as federal pandemic relief funds are set to expire in 2025, creating a projected $730 million regional funding gap the following year. The Regional Transportation Authority (RTA) confirmed the planning directive last week.
Agencies Must Submit Two Budgets for 2026
RTA has directed all major agencies to submit two versions of their 2026 budgets by September 2025:
-
One that assumes new funding sources are secured and service levels remain stable
-
Another that reflects worst-case cuts, including reduced frequency, routes, or staffing
Officials hope this approach will force a public debate and prompt legislative action before the gap hits.
“The fiscal cliff is real,” said RTA Executive Director Leanne Redden. “We want riders, lawmakers, and communities to understand what’s at stake.”
CTA Faces Biggest Share of the Crisis
Among the three major transit systems, CTA is expected to bear the largest share of the shortfall, as it carries the most passengers and has the most extensive infrastructure.
Metra and Pace are also reviewing potential changes to:
-
Suburban commuter train schedules
-
Express bus routes
-
ADA paratransit services
While no changes are immediate, internal staff are reportedly modeling scenarios for service reductions of up to 30%.
Pandemic Relief Was a Lifeline — But It’s Ending
Since 2020, federal COVID-19 relief has kept Chicago transit operations afloat, covering lost fare revenue and maintaining jobs. But those funds will be depleted by mid-2025, according to RTA financial forecasts.
“This isn’t about mismanagement. The pandemic destroyed ridership patterns,” said Redden. “And now we need a new model.”
Lawmakers Urged to Act Before It’s Too Late
Transit leaders are pushing Illinois legislators and the federal government to consider:
-
New permanent funding sources
-
Expanded fare programs
-
Public-private infrastructure partnerships
They warn that inaction will lead to devastating consequences for low-income riders, suburban commuters, and the broader economy.
The original story was first reported by Trains.com.
What Would You Do If Your Local Train or Bus Line Got Cut?
Transit cuts could impact millions in Chicago and its suburbs. Let us know how a change would affect your commute or community at ChicagoSuburbanFamily.com.
