Illinois lawmakers are debating a last-minute $1.5 billion plan to rescue the state’s struggling transit systems, with a vote expected on the final night of the fall veto session. The package emerged from late-night negotiations and would tap transportation-related revenue streams rather than new consumer-facing taxes. The largest share—over $860 million—would come from the motor fuel sales tax, alongside directing annual interest from the state road fund toward transit.
Most of the motor fuel revenue would flow to the Chicago region, which would receive 85%, while 15% would go to downstate transit systems. Interest from the road fund would be split 90% to 10% in favor of the Chicago area. The legislation would also establish a new Northern Illinois Transit Authority overseeing CTA, Metra and Pace, with an initial $1.1 billion in revenue directed to the agency.
To reach the full $1.5 billion target, the Regional Transit Authority is expected to raise the transit tax in the six-county Chicago metro area by 0.25%, generating the remaining $400 million. In order to secure labor support for shifting revenue that could otherwise fund roads, lawmakers agreed to a significant toll hike—indexed to inflation—with the resulting $750 million to $1 billion per year dedicated to highway capital projects.
The compromise marks a pivot from earlier proposals that considered broad-based taxes on online deliveries, ride-hailing services, entertainment events, video streaming, and speed-camera expansion, as well as a wealth tax. Gov. JB Pritzker opposed several of those earlier ideas but signaled he was working closely with legislative leaders on the final package.
The rollout sparked immediate backlash from House Republicans and some downstate Democrats, who criticized negotiators for dramatically changing the proposal in the final hours of session. They objected to the limited time to review such significant changes and the heavy tilt of resources toward the Chicago region.
Supporters urged immediate passage, warning that failure to act could trigger transit layoffs and service cuts. While the RTA recently reduced its projected 2026 funding shortfall from $771 million to $230 million, officials say layoff notices at the CTA could begin as early as May, with deeper impacts expected later in the year if the deal fails.