Chicago Transit Fiscal Cliff Shrinks to $202M in 2026 but Looms Over $700M in 2027

Chicago area transit agencies, including the CTA, Metra, and Pace, face a reduced but still significant budget shortfall for 2026, with the deficit shrinking from an initially projected $771 million to approximately $200 million due to increased sales tax revenue, cost-saving measures, and a planned 10% fare hike. While this reduction delays drastic service cuts, the CTA still anticipates bus and "L" train service reductions starting mid-2026 without additional state funding, potentially eliminating up to 39 bus routes, an entire "L" line, and closing several stations. Metra and Pace avoid service reductions in 2026 but could face cuts in 2027 if funding does not improve, with the overall transit deficit expected to rise to nearly $790 million in 2027 and $888 million in 2028. Chicago Mayor Brandon Johnson is actively seeking a coalition in Springfield to secure progressive funding sources to address the crisis. The Illinois Senate passed transit reform legislation to create a new oversight agency and generate over $1 billion through new taxes, but the House has yet to vote on the measure, which is expected during the upcoming veto session. Despite the revised figures, labor and advocacy groups warn that the funding crisis remains severe and caution against underestimating the need for sustainable, long-term financial solutions.