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SEARCHThe agency reports no planned service cuts as it seeks public input and prepares for looming funding gaps after COVID relief ends.
Like CTA and Pace, Metra initially expected to face a larger funding shortfall next year, driven by the expected exhaustion of federal COVID-relief funds.
Photo: Metra
Metra recently unveiled a $1.1 billion budget for 2026 that includes an RTA-mandated fare increase and other measures to cover a projected $68 million shortfall. According to an agency release, no service cuts will be needed.
It also proposed a $575.3 million capital plan that continues significant investment in bridges, stations, and new and rehabilitated rolling stock. The plans will be the subject of public feedback, including hearings, before the Metra Board of Directors votes in November.
Like CTA and Pace, Metra initially expected to face a larger funding shortfall next year, driven by the expected exhaustion of federal COVID-relief funds.
The agencies have been using the relief funds to cover drops in fare revenue due to lower post-pandemic ridership. Due to various factors, Metra now expects to get through most of 2026 before those relief funds are fully spent. The agency expects to be able to cover the smaller shortfall with prioritized hiring, delayed discretionary spending, delayed service expansions, better operating results, and higher sales taxes.
However, this is not the case for the coming years. Metra expects a $276.3 million shortfall in 2027 and a $304.8 million shortfall in 2028. According to the agency, severe service cuts and other actions will be needed unless the Legislature increases funding for public transportation in Illinois to replace the COVID-relief dollars.
The Regional Transportation Authority required Metra, CTA, and Pace to raise fares by at least 10% next year to help address deficits resulting from the exhaustion of federal COVID-relief funds. It would be the first across-the-board fare increase at Metra since 2018.
Due to the need to round fares to the nearest quarter to assist onboard fare collection, Metra fares would increase 13% to 15% depending on the fare product and the number of zones travelled. A comparison between all current and proposed fares includes:
For instance, the cost of a One-Way Ticket would increase to $4.25 from $3.75 for Zone1-2, to $6.25 from $5.50 for Zone 1-3, and to $7.75 from $6.75 for zone 1-4.
Source: Metra
The proposed operating budget of $1.1 billion is about $18 million, or 1.7%, lower than the 2025 budget. The decrease is largely driven by operating efficiencies and other reductions offset by expected inflationary, contractual, and market increases.
The budget is funded by system-generated revenue of $325 million, including $207.8 million in fares. It is also funded by $635.9 million in regional sales tax receipts and Metra's remaining $206.1 million in federal COVID-relief funding. Metra is proposing to set aside $60 million in fare revenue for capital needs, including for a critical program to replace or rehab hundreds of aging bridges.
Public hearings on the budget will be held throughout the region on Nov. 5 and 6, from 4 p.m. to 6 p.m.
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