A transit law aimed at averting CTA, Metra and Pace service cuts took effect June 1, with the RTA board authorizing a 0.25 percentage-point sales tax increase that starts Aug. 1.
The package is expected to raise about $1.5 billion a year for regional transit, including nearly $200 million this year and $553 million in 2027 from the tax increase alone.
That funding is meant to close budget gaps left by expired federal pandemic aid and still-weaker ridership, allowing the agencies to avoid fare hikes and pledge more service instead of cuts.
The law also remakes governance: the RTA will become the Northern Illinois Transit Authority on Sept. 1, current board terms expire then, and Chicago's mayor will have less control over CTA leadership.
Riders are set to see more bus and train service, CTA spending on slow-zone fixes, expanded Pace hours and frequencies, added Metra trains, and a larger law-enforcement presence—especially on CTA.
Will a record toll hike and new tax permanently fix Chicago's transit, or just shift the financial burden onto the public?
With over $1 billion diverted from roads to rails, what does this mean for the future of Illinois’ statewide transportation network?
NITA Act Launches $1.5 Billion Rescue for Northern Illinois Transit: Funding, Governance, and Controversy Explained
Overview
On June 1, 2026, the Northern Illinois Transit Authority (NITA) Act took effect, marking a turning point for public transportation in the region. The Act was created in response to a looming fiscal crisis that threatened to cause widespread layoffs and severe service cuts, leaving workers and riders uncertain about their daily commutes and livelihoods. Recognizing public transit as vital to the economy, state lawmakers acted urgently to prevent a collapse that would harm communities and the workforce. The NITA Act aims to stabilize funding, protect jobs, and ensure reliable transit services for Northern Illinois.