Illinois lawmakers have approved a landmark transit reform and funding package aimed at averting a looming fiscal crisis for Chicago-area transit systems while reshaping transit governance, land-use policy, and statewide transportation funding priorities.
County leaders are likely to have different perspectives on the legislation based on how they will be impacted by the governance and funding provisions. For this reason, ISACo did not take a position on the legislation.
SB 2111 (Senator Ram Villivalam, D-Chicago/Representative Eva-Dina Delgado, D-Chicago) establishes the Northern Illinois Transit Authority (NITA) to replace the Regional Transportation Authority (RTA) and oversee the Chicago Transit Authority (CTA), Metra, and Pace. NITA will centralize fare policy, service planning, capital investment decisions, and oversight, with a 20-member board split evenly among the City of Chicago, suburban Cook County, collar counties, and the governor. CTA, Metra, and Pace will retain service boards but must submit budgets and operational plans to NITA. New provisions create an Office of Transit Safety and Experience, a coordinated multi-agency transit law-enforcement task force led by the Cook County Sheriff’s Office, and a transit ambassador program to support riders. The bill also establishes an Interagency Coordinating Committee to improve transit innovation and statewide intercity connectivity, and adopts the People Over Parking Act, which prohibits local governments from imposing minimum parking requirements near transit corridors and hubs to encourage transit-oriented development.
To stabilize transit finances, lawmakers approved approximately $1.5 billion in annual revenue shifts and revenue authority. The package redirects $860 million in state motor-fuel sales tax revenue and $200 million in interest from the state road fund to transit, resources traditionally used for statewide road and bridge projects. These funds will be split 85% to the Chicago region and 15% to downstate systems. The legislation also authorizes a 0.25% sales tax increase across the RTA service area and sharply raises Illinois Tollway rates—45 cents per passenger toll and a 30% increase for commercial vehicles—expected to generate $750 million to $1 billion annually for tollway road investments.
Concerns raised by the Operating Engineers Local 150 — particularly related to preserving state investment in highway and construction projects — played a key role in shaping the final funding plan. While the legislation diverts substantial motor-fuel tax revenue and road-fund interest to support Chicago-area transit operations and capital needs, lawmakers paired these changes with a substantial toll increase to safeguard road-building capacity. The bill raises Illinois Tollway passenger tolls by 45 cents and increases commercial tolls by 30%, with annual revenue projected between $750 million and $1 billion. These funds are dedicated to tollway road and bridge work rather than transit, serving as a direct offset to the diverted road dollars. This dedicated replacement stream addressed Local 150’s core concern of maintaining strong statewide transportation infrastructure investment and preserving construction jobs. The compromise secured the union’s support after it opposed a prior spring proposal that would have raised tolls without guaranteeing those revenues would remain within the road-building program, demonstrating labor’s influence in shaping the final approach.
Supporters describe the legislation as a historic transformation necessary to avoid deep service cuts—up to 40% at CTA—and protect jobs and regional mobility as federal pandemic aid expires and ridership remains below pre-COVID levels. Opponents, particularly downstate Republicans, criticized late-night passage and contend the bill shifts transportation resources disproportionately toward Chicago-area transit at the expense of statewide road needs. Downstate systems are expected to receive under $150 million in return, and local leaders warn that reduced road-fund capacity could slow highway projects in rural areas, increase competition for state dollars, and place greater pressure on local revenue sources.
The legislation’s diversion of motor-fuel tax and road-fund interest revenue toward Chicago-area transit has significant implications for downstate counties, which rely heavily on state transportation funds for road maintenance and capital improvements. While the bill allocates 15% of diverted transit dollars to downstate systems—estimated at under $150 million—critics argue this is outweighed by the loss of road-fund resources traditionally used statewide. Downstate counties may experience increased competition for limited road and bridge funding, potentially delaying projects or shifting more cost burden to local property and sales taxes. Additionally, because the reforms primarily restructure governance and planning authority in northeastern Illinois, downstate county governments do not benefit from the same level of system modernization and centralized coordination. As a result, downstate officials have expressed concern that the plan prioritizes urban transit stabilization at the expense of rural and regional infrastructure needs, with limited near-term benefit for communities outside the Chicago metropolitan area.
County Impacts
Land-Use and Development
- Counties with transit corridors and hubs lose authority to require minimum parking near transit, affecting zoning, development standards, and local planning autonomy.
- Potential increase in transit-oriented development could spur economic activity but may also require updates to local land-use ordinances and coordination with developers.
Transportation Funding
- Diversion of gas-tax and road-fund revenues toward transit may reduce future resources available for county transportation infrastructure and maintenance programs, particularly downstate.
- Toll increases may shift freight and commuter patterns, potentially impacting local roads as drivers bypass tolled routes.
Governance and Intergovernmental Coordination
- The new Northern Illinois Transit Authority Board shifts regional voting power by allocating appointments equally among the City of Chicago, suburban Cook County, the collar counties, and the Governor (five each), altering the previous balance of influence under the RTA and prompting concerns among collar county leaders about diminished autonomy and control in regional decision-making.
- Counties in the Chicago metropolitan area will now interact with NITA rather than the RTA, changing funding and planning relationships.
- Counties statewide may engage with the new Interagency Coordinating Committee to improve intercity connectivity, especially where county-run or partnered transit agencies operate.
Public Safety Coordination
- Counties in the Chicago region—especially Cook and collar counties—may have direct involvement in the new regional transit safety framework coordinated with local sheriff and police departments.
Going Forward
Governor JB Pritzker is expected to sign the legislation into law. The legislation would take effect June 1, 2026, with lawmakers indicating further refinement legislation will likely follow. ISACo will continue to monitor developments and provide updates as necessary.