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CTA OKs Budget With No Cuts or Fare Hikes; Major Service Boosts Planned When New Public Funding Arrives

The Chicago Transit Authority board on Wednesday approved a 2026 budget with no service cuts, fare increases or layoffs, averting a feared doomsday scenario after the Illinois General Assembly came through with badly needed money to fill a transit budget gap.

That measure, approved during the fall veto session less than two weeks ago, also includes a huge influx of new public cash for CTA, Metra and Pace — but that money, earmarked for a slate of service improvements, won’t be coming into transit agency coffers immediately, officials cautioned.

The 2026 budget reverses a proposed 10% fare increase but does maintain some $60 million in cost savings previously identified. It also makes permanent the regional day pass allowing a single, discounted 24-hour fare across CTA, Metra and Pace, as well as a program allowing paratransit users to ride for free on fixed routes. The budget includes additional station overhauls as part of the “Refresh and Renew” program and work to upgrade the Blue Line’s Forest Park Branch.

While celebrating the 2026 budget and the forthcoming increase in public funding, CTA Board Chairman Lester Barclay cautioned officials that “the public thinks that we got a lot of money” to make major improvements to the system. CTA’s Chief Financial Officer Tom McKone said the agency is working with the Regional Transportation Authority to get clear information about the exact amount and timing of the cash influx CTA expects sometime in the second half of 2026.

In the meantime, the CTA can begin to plan, hire and develop new schedules for the various service boosts under consideration. Among those: 24-hour Orange Line service to Midway Airport; improving overall train frequency; expanding a network of high-frequency buses from 20 to 30 routes; standing up a staff of five to support equitable transit-oriented development; and a Safe Ride Ambassador program aimed at deescalating crisis situations, connecting riders with needed support services and improving relationships with passengers overall.

CTA Acting President Nora Leerhsen commended the many staffers, advocates and lawmakers who helped get the transit rescue bill over the finish line.

“This has been a heavy five years for our agency, because coming out of the pandemic and the horror and the fear, we were met only with uncertainty of our financial future,” she said. Now, Leerhsen told directors, the CTA can “conclude that era of uncertainty” for its staff and riders.

The transit bill that state lawmakers OK’d last month also contains major governance reforms, creating the new Northern Illinois Transit Authority to replace the current Regional Transportation Authority. NITA will oversee the operations of CTA, Metra and Pace, with expanded authority over fares, service planning and capital investments aimed at creating a better integrated transit system across the region.

But Barclay said he’s concerned that some of the provisions granting NITA expanded authority over the three transit systems might diminish “local accountability and autonomy.”

“While I fully support reform that strengthens regional coordination and improves accountability, … the shift of final decision-making authority on key policies and operational matters to the regional board will limit our ability as an agency to act quickly and responsively to the needs of our community,” Barclay said. “Reforms should strengthen our ability to serve, not dilute or strip away the tools we need to do the job effectively.”

Despite Barclay raising that red flag, Leerhsen projected a sense of accomplishment and optimism about CTA’s future.

“The future is bright,” she told directors, “and I’m very excited and thankful.”

Contact Nick Blumberg: [email protected] | (773) 509-5434 | @ndblumberg

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