As transit systems across the country continue to navigate post-pandemic financial pressures, two major Midwestern agencies took significant steps this week to stabilize operations and protect essential services for riders.

The Chicago Regional Transportation Authority (RTA) and the Milwaukee County Transit System (MCTS) both advanced 2026 plans that avoid sweeping service cuts, leverage new funding solutions, and lay the groundwork for long-term structural reform.

RTA Advances 2026 Budget Following Passage of NITA Act

In Chicago, the RTA board adopted a 2026 regional operating budget and five-year capital program made possible by the newly signed Northern Illinois Transit Authority (NITA) Act.

The legislation averts the region’s anticipated fiscal cliff by providing an estimated $1.2 billion in new annual operating funding and establishing a new regional governance structure that will replace the RTA in June 2026.

“For the first time in years, the RTA is not preparing for a looming crisis, but instead optimistic for the opportunities ahead,” said RTA Executive Director Leanne Redden. “This is a historic investment that will protect the essential service of today and lay the foundation for the transit of tomorrow.”

The budget holds transit fares steady and avoids service cuts while supporting improvements across CTA, Metra, and Pace, including more frequent service, safety upgrades, accessibility investments, and cleaner facilities. With ridership steadily rebounding, leaders say the new funding and structural reforms position the region to rebuild a stronger, more coordinated system that reflects rider needs.

“The transit system arrives at this moment because riders, transit operators, advocates, local leaders, business and civic institutions, and elected officials insisted that transit is essential to the region’s future,” said RTA Board Chair Kirk Dillard.

MCTS Approves 2026 Service Plan to Preserve Core Transit Access

The Milwaukee County Board of Supervisors approved the 2026 MCTS Service Plan, enabling the transit system to maintain service in every neighborhood it currently serves while avoiding the elimination of six bus routes originally slated for cuts.

Backed by support from County Executive David Crowley, the plan uses targeted off-peak frequency reductions and remaining federal relief dollars to close a $14 million budget gap and sustain both transit and paratransit services through 2026.

“Thanks to our collaborative efforts, workers and families who rely on our bus system will still have access to this essential service,” Crowley said in a release.

County leaders emphasized that the plan protects access to jobs, education, health care, and opportunity for the thousands of riders who rely on the system every day.

MCTS President and CEO Steve Fuentes said the decision gives the agency critical time to engage community and business stakeholders ahead of the larger funding challenges projected for 2027, noting that MCTS remains one of the few major U.S. transit agencies without dedicated revenue.

The service changes outlined in the 2026 Service Plan will roll out in two phases: the Winter Service Plan and the Spring Service Plan, with fixed-route base fares increasing in the new year.