Chicago, Illinois — Gov. J.B. Pritzker on Tuesday signed sweeping legislation to stabilize and restructure public transit funding in northern Illinois, approving a $1.5 billion annual package that supporters say averts deep service cuts but critics warn will raise costs for consumers.
Signed at Union Station, Senate Bill 2111 creates the Northern Illinois Transit Authority (NITA), replacing the Regional Transportation Authority and consolidating oversight of the Chicago Transit Authority, Metra, and Pace. The law follows more than two years of debate over a looming transit “fiscal cliff,” initially estimated at $770 million before being revised to roughly $250 million for 2026.
The funding plan allows a 0.25% sales tax increase across six Chicago-area counties, projected to generate about $478 million annually. Another $860 million is expected to come from diverting a portion of Illinois’ motor fuel tax, with most of that revenue flowing to NITA. Additional funds will be drawn from interest in road and construction accounts.
Pritzker said the law preserves affordability while improving safety and reliability, promising stronger oversight through audits and centralized management. Environmental groups praised the move as a step toward cleaner transportation and reduced pollution.
Republican leaders and business groups criticized the package as a bailout for Chicago transit at the expense of suburban taxpayers, citing higher sales taxes, toll increases, and impacts on trucking, farming, retail, and hospitality. Some also questioned accountability given past findings of waste at the CTA.
Democratic lawmakers acknowledged further adjustments may be needed but said the framework prevents immediate service disruptions and lays groundwork for a more integrated transit system.
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