Gov. JB Pritzker has signed legislation creating the Northern Illinois Transit Authority (NITA), a major overhaul of how public transportation is governed and funded in Illinois. Supporters say the move will stabilize transit systems across the region without raising broad statewide taxes.
The Northern Illinois Transit Authority Act, Senate Bill 2111, establishes a new regional authority with expanded control over service planning, capital projects, fare collection and operations for the Chicago Transit Authority, Metra and Pace. Lawmakers advanced the measure to address a looming fiscal shortfall that threatened long-term transit reliability in northeastern Illinois.
The law also directs new investment into public transit, capital improvements and tollways statewide. Backers say improved transit service will expand access to jobs, ease congestion and improve air quality while boosting economic growth. Argonne National Laboratory estimates that every dollar invested in transit generates about $13 in economic activity.
“Today’s signing of the Northern Illinois Transit Authority Act is a major victory for working families and the entire state of Illinois,” said Mike Macellaio, president of the Chicago and Cook County Building Trades. He said the law strengthens accountability and will create thousands of union construction jobs tied to modernizing transit, roads and stations across Chicago, Cook County and downstate Illinois.
The legislation provides roughly $1.5 billion annually in ongoing transit and infrastructure funding without creating new statewide taxes. Instead, it redirects existing revenue and authorizes limited regional tax adjustments.
Under the law, a portion of the state sales tax on gasoline will be dedicated to transit, generating an estimated $860 million a year for operations. It also allows the Regional Transportation Authority to increase the regional sales tax by up to 0.25% within the six-county NITA area, raising about $478 million annually. In addition, 90% of interest earnings from the Road Fund and State Construction Account Fund will be directed to northeastern Illinois transit capital projects, with the remaining 10% going to downstate communities, for about $200 million a year. The act also includes provisions to support a new Illinois Tollway capital program.
“Today’s bill signing isn’t just about keeping our buses and trains running, it’s about protecting the people who keep our entire transit system moving,” said Brian Shanahan, railroad coordinator for the Machinists International. He said the measure reflects rare unity among rail unions and credited Illinois AFL-CIO President Tim Drea with ensuring transit workers’ voices were heard.
The act also aims to improve service coordination statewide. It calls for enhanced suburban transit through closer coordination between Metra and Pace, a new regional Dial-a-Ride program, and Metra’s regional rail model to expand on-demand and suburb-to-suburb service, especially for seniors and riders with disabilities.
Downstate transit systems will receive about $150 million annually under the law to help stabilize operations and fund capital projects. The legislation also lowers the local cost-share requirement for transit projects from 35% to 20%, a change supporters say will make it easier for smaller communities to maintain and improve service.
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