IL Governor Signs Significant Transit Funding Legislation into Law

With many transit agencies in Illinois – including those in the large urban areas like Chicago – facing a fiscal cliff as early as 2026, the Illinois House and Senate passed SB 2111 on October 30.This included a House vote of 72-33 in favor of this historic investment that will positively position Illinois transit for years to come. The bill was signed into law by Governor Pritzker on December 16, 2025.

Agencies like the Regional Transportation Authority (RTA), Chicago Transit Agency, Metra Commuter Rail and Pace Suburban Bus will collectively face a $230 million funding shortfall in 2026 as pandemic relief money runs out.

The Downstate Public Transportation Act, referred to as the Downstate Operating Assistance Program (DOAP), was established by the Illinois General Assembly to provide operating funds to assist in the development and operation of public transportation services statewide. Currently, DOAP pays up to 65% of eligible expenses and each eligible participant receives an annual appropriation from the general assembly. The program is administered by IDOT’s Office of Intermodal Project Implementation (OIPI). who is responsible for reviewing grant applications, executing grant agreements, paying requisitions, monitoring the eligibility of incurred expenses by the participants, and ensuring grantee compliance with federal and state program regulations. According to the Illinois Public Transit Association, the DOAP has been running at a shortfall of about $200 million.

SB2111 contains broad reform, but a much different funding package than was originally proposed.

Revenues for transit assistance in the bill include:

1. Utilizing the sales tax on motor fuel for transit operations with 85% going to Northeastern Illinois transit, and 15% or an estimated $860 million going to Downstate transit, including the St. Clair County Transit District in the St. Louis region.
2. Raising the existing Regional Transportation Authority sales tax by a fourth of a  percentage point, to 1% in Lake, McHenry, Kane, DuPage and Will counties and to 1.25% in Cook County. That tax hike will generate $478 million.
3. Utilizing up to $200 million from the interest on the road fund for transit capital projects for both for the Chicago region and downstate transit.

In addition, language included in the bill for DOAP reimbursement rate changes it from 65% to 80%. Funding for downstate public transportation agencies are set to receive $129 million annually.