Related: A Favorable Outlook for Chicago’s Intercity Rail, But Seat Shortages Loom
NITA Act Overhauls Illinois Transit Funding for CTA, Metra, and Pace
A new authority will modernize transit, boost service, and secure long-term funding across Illinois without statewide tax hikes.

The NITA Act delivers approximately $1.5 billion in annual transit and infrastructure funding without creating any new broad-based statewide taxes.
Photo: Ricky Esquive
This week, Governor JB Pritzker signed the Northern Illinois Transit Authority (NITA) Act, SB2111, into law, marking a landmark action in modernizing Illinois’ transit system.
The law creates a new regional authority to oversee the Chicago Transit Authority, Metra, and Pace, while delivering investments in public transit, capital projects, and tollways across the state without raising statewide taxes.
According to a release, the law will “redefine how transit operates in Illinois, giving NITA expanded authority over service planning, capital projects, fare collection, and operational oversight,” while addressing the “fiscal cliff” impacting the state’s transit systems.
The improvements would extend beyond riders, as “better transit expands job access, creates cleaner air, lowers congestion, and supports economic development.” According to Argonne National Lab, each dollar invested in transit generates $13 in economic activity, highlighting the "far-reaching impact of these investments."
“We are bolstering operations and upgrading trains, tracks, and buses, and we’re doing it in the most responsible way, with no new statewide taxes,” said Pritzker. “For families, workers, businesses, schoolchildren, and visitors, this is a once-in-a-generation investment that will benefit everyone, especially the overall Illinois economy.”
“By signing this bill into law, we are building a system designed around riders, not agencies; around outcomes, not excuses; and around the future of Illinois,” said Illinois Senate President Don Harmon (D-Oak Park).
By signing this bill into law, State Senator Ram Villivalam (D-Chicago) said they avoided “40% cuts to northeastern Illinois public transit service and prevented almost 3,000 of the system’s workers from being laid off,” while leaving room for investment into the system.
The bill will go into effect on June 1, 2026. A detailed fact sheet with additional details about the bill is available here.
Responsible Funding for Illinois Public Transit
The NITA Act delivers approximately $1.5 billion in annual transit and infrastructure funding without creating any new broad-based statewide taxes. Funding is generated by redirecting existing revenue streams and through a board-approved regional tax authority.
Divert Gas Sales Tax to Transit: A portion of the existing sales tax on gas — historically directed to the General Revenue Fund (GRF) or shifted to the Road Fund for construction — is now dedicated to transit, raising approximately $860 million annually for transit operations.
Authorize RTA to Increase Regional Sales Tax by 0.25%: The sales tax is currently collected exclusively in the 6-county NITA region, enabling RTA to access $478 million annually for NITA operations.
Divert Road Fund and State Construction Account Fund (SCAF) Interest to Transit Capital: 90% of the interest will be allocated to Northeastern Illinois, and 10% to downstate, raising approximately $200 million annually for NITA and downstate capital.
Tollway Revenue Provisions: The legislation also includes revenue measures supporting a new Tollway capital program.
The NITA Act provides targeted support to strengthen transit across Illinois. Key investments stabilize operations, improve coordination, and expand services to better meet local needs:
Enhanced Suburban Service: Improved coordination between Metra and Pace to deliver more reliable, frequent service.
New regional Dial-a-Ride program and Metra’s regional rail model expand on-demand transit and suburb-to-suburb connectivity, including service beyond downtown Chicago, especially benefiting seniors and riders with disabilities.
$150 Million for Downstate Transit
Stabilizes operations and supports capital projects across downstate communities.
Local cost-share reduced from 35% to 20%, reflecting smaller or shifting local tax bases. Local communities previously had to cover 35% of transit project costs. Under SB 2111, that requirement is reduced to 20%, making it easier for smaller towns and communities with limited or fluctuating tax revenue to maintain and improve transit services.
Funding supports statewide safety measures designed to improve security and rider experience across the transit system, including:
Coordinated Safety and Law Enforcement: Organizes a Law Enforcement Task Force led by Cook County’s Sheriff to combat violent crime and establishes a Coordinated Response Safety Council with law enforcement and social service representatives to develop a long-term strategy.
Transit Ambassador Program and Safety Technology: Deploys unarmed ambassadors to assist riders and liaise with social services, while public-facing technologies, including a mobile app, allow riders to report safety issues in real time to the regional authority and law enforcement.
More Management

FIFA World Cup Matches Are Driving Record Transit Ridership Nationwide
See how World Cup matches are generating record transit demand across North America, with ridership surpassing Super Bowls, concerts, and Olympic-era events.
Read More →
The Hidden Cost of Fuel Data Inaccuracy in Public Transit Fleets
In today's transit environment, accurate fuel and mileage data are critical to reducing costs, minimizing downtime, and improving fleet performance.
Read More →
Virginia's $28.5B Transportation Plan Targets Transit and Rail
Approved by the Commonwealth Transportation Board, the program supports ongoing infrastructure projects while providing new investments in transit, state of good repair and transportation alternatives.
Read More →
Latinos In Transit Seeks Host Organization for 2027 Leadership Summit
The selected host organization will showcase its transit system, projects, and community while welcoming hundreds of industry leaders and emerging professionals during Hispanic Heritage Month.
Read More →
Bipartisan BUSES Act Seeks Changes to New York City's Bus Idling Enforcement Program
Backed by motorcoach operators, the legislation seeks to balance emissions goals with passenger safety by allowing limited idling for inspections, accessibility needs and extreme weather conditions.
Read More →
DOT: Brightline Corridor Incidents Fall 30% Following Federal Safety Upgrades
Safety improvements funded through a $25 million federal investment are credited with reducing trespassing and train-vehicle collisions along the Brightline Florida corridor.
Read More →
D Line Expansion Fuels Growth Across LA Metro's Rail System
Weekend rail ridership was especially strong, soaring 18% as riders embraced expanded access to jobs, entertainment, dining, and cultural destinations, said the agency. Total system ridership for May, including bus and rail, was 26,966,657.
Read More →
Q4 Travel Data Reveals Drop in Vehicle Traffic to Manhattan Congestion Zone
NYMTC’s quarterly Travel Patterns Report provides a snapshot of travel activity throughout New York City, Long Island, the Lower Hudson Valley, and northern New Jersey using data collected from the agencies operating the region’s bridges, tunnels, and public transit systems.
Read More →
Southern California's Metrolink Debuts Contactless Fare Payment Pilot
Customers traveling between Redlands and Los Angeles can now tap their preferred payment method, including a credit or debit card, mobile wallet, or wearable device, at station validators before boarding and again while exiting.
Read More →
California's BART Approves FY27 Budget While Maintaining Service Levels
The budget covers July 1, 2026, through June 30, 2027, a period when pandemic emergency funds run out, the District faces a structural deficit of $375 million, and a regional transit funding measure may appear on the November ballot.
Read More →