This week, the Southeastern Pennsylvania Transportation Authority (SEPTA) Board voted to amend the FY26 Capital Budget and FY26 Program of Projects by transferring $394 million of federal, state, and local capital funds to the operating budget.

PennDOT approved the emergency request last month to help SEPTA avoid service cuts for the next two years. However, according to an agency release, transferring capital funds to support operations requires capital project offsets.

As a result, SEPTA will defer the purchase of new buses, the Bristol Regional Rail Station accessibility project, and the construction of a new building at the Frazer Railroad Facility.

“The Board supports these project deferrals because they do not compromise safety by stopping crucial repairs,” said SEPTA Board Chair Kenneth E. Lawrence Jr. “We also do not want to disrupt projects that are already underway, including the replacement of the Market-Frankford Line [L] and Trolley cars.”

Under this amendment, SEPTA will postpone:

• The purchase of 247 new hybrid diesel-electric buses for three years ($256 million).

• The project designed to bring Bristol Station on the Trenton Line into compliance with the Americans with Disabilities Act ($46 million).

• The final phase of an expansion to the Frazer Railroad Facility ($39 million).

• The purchase of hydrogen and electric-powered buses for SEPTA’s zero-emission pilot program ($41 million).

• The retrofitting of existing hybrid buses to run exclusively on electric power ($11 million).

These deferred initiatives are on top of the 44 planned infrastructure projects that SEPTA had previously paused to cut $1.8 billion to address a gap between the costs of the work and available funding in the original FY26 Capital Budget.

“Using capital funds for operations keeps us moving today, but it pushes those critical investments further down the road,” said SEPTA General Manager Scott A. Sauer. “We stand ready to continue working with leaders in Harrisburg to develop a long-term solution that addresses both our operating needs and the capital investment so critical to our future.”

Capital funds are expected to be available for operating relief in January 2026.