Illinois lawmakers approved the 2026 state budget Saturday before the end of the spring legislative session—without addressing the $770 million funding deficit projected by Chicago’s Regional Transportation Authority.
According to the Illinois Governor’s Office, the $55.1 billion budget includes funding for education, health services, and public safety, as well as new taxes on tobacco products and online gambling—but it offers no solution for the looming mass transit fiscal cliff.
Understanding the budget shortfall
The RTA budget deficit is driven in part by the expiration of federal COVID-era relief funds in 2026. The RTA covers Chicago’s public transit bodies including the Chicago Transit Authority (CTA), Pace, and Metra systems.
The agency previously warned that failure to address the budget gap by the end of the spring session could result in “doomsday cuts,” including a 40% reduction in service across the board and up to 3,000 layoffs.
The service reductions could leave as many as 1 in 5 Chicago-area commuters without reliable public transportation.
“This isn’t just a transit crisis—it’s a regional emergency,” RTA Executive Director Leanne Redden said in a statement earlier this year.
“If the General Assembly does not act this spring, hundreds of thousands of Illinoisans will wake up in 2026 without a way to get to work, school, or medical appointments.”
No clear resolution in sight
With Saturday’s budget approval, a path forward for closing the RTA’s funding gap remains uncertain.
One proposal backed by Sen. Ram Villivalam (D-Chicago) would impose a $1.50 tax on food and package deliveries to help generate revenue, according to the Chicago Sun-Times.
While the bill passed the Senate in a 32-22 vote, it failed to advance to the House floor before the session ended. Now, it would require a three-fifths majority vote to pass in a potential special session.
Illinois lawmakers are expected to reconvene this summer to revisit transit funding proposals.