Pennsylvania's two largest transit agencies, Pittsburgh Regional Transit (PRT) and SEPTA, have adopted their Fiscal Year 2026 budgets despite a growing transit funding crisis. 

Both agencies are facing severe service cuts and fare hikes unless the state legislature acts to provide new, sustainable funding before July 1.

PRT Passes Budget with Potential Service Cuts and Fare Increases

At its recent board meeting, Pittsburgh Regional Transit approved a $539.3 million operating budget and a $187.9 million capital budget for FY26. The operating plan includes contingencies for a 35% service reduction and a 9.9% fare increase, though PRT officials emphasized these changes are not finalized.

PRT CEO Katharine Kelleman clarified that the budget was designed to meet legal requirements under the Second Class County Port Authority Act, allowing the agency to maintain compliance while retaining flexibility to amend the budget later, depending on state funding outcomes.

“The board is simply giving us a balanced budget within the required deadline,” said Kelleman. “We remain hopeful for a long-term solution to fund public transit.”

Despite fiscal pressure, the capital budget continues to support critical infrastructure needs, including $38 million for new buses, $16.1 million to rehabilitate the Panhandle Bridge, and $15 million for replacing tracks in the Mt. Lebanon Transit Tunnel.

Kelleman thanked board members, state legislators, employees, and riders for their support and reaffirmed PRT’s commitment to working with state leaders to secure reliable, long-term public transit investment.

SEPTA Approves Drastic Cuts, Fare Hike Without New State Funding

On the same day, the SEPTA board voted to approve a FY26 operating budget that includes a 45% cut in transit service and a 21.5% average fare hike to fill a $213 million recurring deficit — moves that agency leaders describe as devastating but necessary without additional state support.

“This is a vote none of us wanted to take,” said SEPTA Board Chair Kenneth E. Lawrence Jr. “To be clear, this does not have to happen — if state lawmakers can reach an agreement to deliver sufficient, new funding for public transit.”

Service reductions are scheduled to begin August 24 with the elimination of 32 bus routes and a reduction in rail services. 

On September 1, fares will increase across the board, raising the base fare for Bus and Metro to $2.90, tying New York’s MTA for the highest in the country. 

Additional cuts, including eliminating five Regional Rail lines and a 9 p.m. curfew on remaining rail service, will begin January 1.

“This budget will effectively dismantle SEPTA,” GM Scott A. Sauer said. “Once this dismantlement begins, it will be almost impossible to reverse.”

SEPTA cited multiple causes for the shortfall, including the expiration of federal COVID-19 relief funds, rising operating costs, inflation, and growing expenses tied to public safety and homelessness. 

Despite aggressive cost-cutting measures — such as freezing management pay, suspending third-party consulting, and generating new revenue from fare increases and parking — SEPTA faces a massive budget gap that only state action can close.

The authority also approved a capital budget that defers $2 billion in projects, notably delaying key accessibility upgrades that would benefit millions of riders.

Statewide Stakes and Ongoing Advocacy

Both PRT and SEPTA underscored that the budgets passed are contingency plans. 

With Gov. Josh Shapiro’s proposed transit funding package advancing in the Pennsylvania House, negotiations continue in Harrisburg. Transit leaders across the state are urging swift action to avert what could become the most significant service rollback in recent memory.

“Our region’s future depends on transit,” said PRT’s Kelleman.

“The economic and social impacts will be immediate and long-lasting,” added SEPTA’s Sauer.

Without legislative action, riders across Pennsylvania could soon face steep fare increases, reduced mobility, and growing barriers to opportunity.