The Chicago Transit Authority (CTA) proposed three operating budgets for Fiscal Year 2026, each centered on the needs of its riders and employees, while also reflecting potential funding scenarios the agency could face pending the outcome of ongoing legislative efforts in the state’s capital.

The three budget scenarios being presented maintain, build upon, or reverse the successes achieved so far in 2025, and each calls for a modest fare increase, as requested by the Regional Transportation Authority (RTA), to provide additional revenue with minimal impact on ridership, as anticipated.

“This is a unique and unprecedented budget season for our agency,” said CTA Acting President Nora Leerhsen. “Like transit agencies across the country, CTA has a significant funding need, and we are planning for multiple scenarios for next year.”

2026 Budget Scenarios

Under the leadership of Acting President Leerhsen, unprecedented efforts have been made to engage directly with both riders and employees, utilizing their feedback to guide the agency’s efforts, according to the agency. 

So far this year, more than 8,000 riders have spoken directly to agency leadership through the CTA Chats events at rail stations and bus turnarounds, as well as at the three budget town hall meetings in September.

This engagement substantially informed the following 2026 budget scenarios and the prioritization of CTA’s work in the coming years:

• Budget A: Baseline budget that assumes typical state funding levels that solely address the existing structural funding gap.

• Budget B: Growth budget that fixes the funding disparity and allows CTA to close its budget gap, plus makes significant investments to deliver the services being requested by riders.

• Budget C: Reduced budget that has no additional funding to address the structural funding gap, resulting in a significant cut to service.

While one of the proposed budgets takes into account the possibility that there may be no funding solution advanced, the CTA remains optimistic and is continuing to plan with the creation of Budgets A and B, which offer opportunities for the CTA to continue to innovate and seek out new measures for improving key areas of the transit riding experience, including addressing safety and security of riders, enhanced customer communications; continued improvement of transit connections and services; and ongoing investments to provide cleaner, brighter, safer, more modern and accessible facilities.

Raising Fares

As requested by the RTA, the CTA and regional transit partners, Metra and Pace, have included a fare increase as part of their proposed 2026 operating budgets, according to the agency. 

On average, more than one million weekday rides are taken on CTA buses and trains each year. Despite the potential for a fare increase, the CTA still offers cheaper travel options in the Chicago region. CTA has not had a fare increase since 2018.

Proposed fare and price plan change details:

• The base fare for both bus and rail increases by $0.25.

• Pass prices to align with the fare increase: 1-Day Pass increasing $1; 7-Day Pass increasing $5; 30-Day Pass increasing $10; and Regional Connect Pass increasing $15. 

• Ventra single-ride tickets increase to $3.50.

• Pay-as-you-go payments increase to $3 for those using contactless debit or credit cards (including plastic and digital wallets) directly at Ventra readers. These higher fees are to offset additional merchant expenses.

• Elimination of the 3-day pass to streamline fare offerings.

• Reduced fares remain at or below 50% of full fares, in compliance with federal requirements.

Funding Solution Needed to Move Forward

The CTA, like other transit agencies across the country, is facing a sizable structural funding gap.

Gap in 2026 and beyond. With one-time federal pandemic funds running out and a lack of sufficient operating funding sources, CTA and transit agencies across the state are facing some of the most significant budget deficits ever, beginning in 2026 and continuing. 

Despite funding challenges, CTA continues to be one of the most efficient transit agencies in the country, as it is the last central transit agency to have exhausted its federal COVID-19 relief funds. 

Furthermore, over the previous decade, CTA has achieved more than $800 million in savings and revenue growth through efficiencies such as investments in technology, position eliminations and freezes, changes to procurement management programs, healthcare reforms, fair collection enhancements, fuel and power hedging, and many other initiatives.

CTA officials stated that they will allow interested individuals or agencies to be heard at the public hearing regarding social, economic, environmental, and other related aspects of the Proposed 2026-2030 Capital Program of Projects, the 2026 Operating Budget and Program, and the Financial Plan for 2027 and 2028. Written and oral comments will be taken into consideration before adoption of the Proposed 2026-2030 Capital Program of Projects, 2026 Operating Budget and Program, and the Financial Plan for 2027 and 2028.