SPRINGFIELD — State lawmakers finally reached their destination by passing a transit bill to save the Chicago area’s ailing transit agencies early Friday, capping the final night of the fall veto session.
After a successful 2 a.m. House vote and a 4 a.m. Senate vote, lawmakers settled on a tax package to stave off a $200 million-plus “fiscal cliff” next year that may result in major cuts to bus and rail service at the Chicago Transit Authority, Metra and Pace.
House Democrats late Thursday amended a $1.5 billion funding bill, doing away with proposed statewide taxes that Gov. JB Pritzker shot down as a non-starter.
The new bill, which now heads to Pritzker’s desk for his signature, includes a number of new revenue sources:
- Redirecting the state’s sales tax on motor fuel to transit operations, collecting $860 million a year.
- Dedicating all of the interest on the state’s $8 billion road fund to transit, collecting nearly $200 million a year.
- Authorizing the Regional Transit Authority to increase its Chicago area sales tax by 0.25%.
- No fare increases on public transit for the first year after the bill’s passage.
- Increasing tolls by 45 cents for passenger cars, and 30% for other vehicles, to raise up to $1 billion for the Illinois Tollway.
- A 15-vote threshold on a new 20-member board to replace the Regional Transportation Authority.
- An effective date of June 1, 2026.
Lawmakers removed a proposed 7% tax on streaming services like Netflix, additional fees on tickets to large concerts, sporting events and other performances. The amended bill also removed a proposed and unprecedented “billionaire tax” on unrealized capital gains for the ultra-wealthy.
The revised transit bill was introduced in the House by Chicago state Reps. Eva-Dina Delgado and Kam Buckner, who said they’ve been working for five years to solve the impending transit funding cliff.
Before the 72-32 House vote and 36-21 Senate vote, co-sponsor Delgado called the new transit funding mechanisms “a way we can avoid raising significant taxes on folks.” But some downstate representatives said the amended bill took them by surprise, that it doesn’t share enough money outside of the Chicago area, and that the bill should have been held for another day.
House Democrats were largely opposed to a bill that passed the state Senate in May, which aimed to raise $1.5 billion yearly through a $1.50 package delivery fee, a higher rideshare tax and an expanded real estate transfer tax.
Transit and labor leaders wanted lawmakers to settle on a package to avert major budget cuts that would hit midway through next year and result in layoffs and loss of CTA bus and rail service. Lawmakers on both sides had already mostly agreed on revamped governance under an empowered Northern Illinois Transit Authority.
Lawmakers have been trying to sort out transit funding for years, since it became apparent that the transit agencies would face major service cuts to balance the books when federal COVID-19 grants run dry. The transit agencies have been struggling with lower ridership that hasn’t recovered post-pandemic.
The transit agencies recently lowered their funding gap in 2026 down to $200 million, down from an estimated $700 million, thanks to new online sales tax revenue and an expected 10% fare increase in February. Transit agencies say the budget deficit would rise to nearly $800 million in 2027 without more funding from the state.
In other late session action, lawmakers passed legislation intended to curb federal immigration authorities from carrying out deportations in or near hospitals, public universities, day cares or courthouses. A bill sponsored by state Senate President Don Harmon, D-Oak Park, would also allow residents to sue federal immigration who violate their constitutional rights.
Harmon acknowledged the bill, if passed, would likely face legal challenges, “but that doesn’t mean we shouldn’t do something, and I’m damn well willing to try.”
State Sen. Celina Villanueva, D-Chicago, said the bill was about “restoring trust, protecting our neighbors, defending our rights, and reminding the world that in Illinois, we do not let fear win.
“We meet violence with courage. We meet hate with law, and we meet intimidation with justice,” she said. “This bill is a statement on behalf of the Legislature to say that what ICE is doing is unacceptable. It’s unlawful.”