What Illinois’ New $1.5 Billion Transit Law Means for Downstate Communities

By Rosetta “Rosie” Brown — Candidate for Illinois House District 111

Illinois has officially passed a historic $1.5 billion per year transit funding law, a measure created to prevent a full-blown transit crisis in the Chicago region. Headlines around the state have focused on CTA, Metra, and Pace avoiding service cuts as federal pandemic relief expires, but people across downstate Illinois are asking an important question: What does this mean for us?

A Crisis Averted in Chicago—and Why It Matters

For the past several years, Chicago’s transit agencies were warning of a looming “fiscal cliff.” Without new revenue, the region was preparing to cut service by as much as 40 percent as early as 2026 due to the loss of federal pandemic funding. The Illinois legislature approved the new funding package precisely to avoid that scenario, ensuring transit systems in the Chicago region can continue operating without fare increases or service cuts in 2026. This was confirmed when Governor JB Pritzker signed the bill in December, making the law effective beginning in June 2026.

While most of the public focus has been on Chicago, this stabilization matters to the rest of Illinois too. The Chicago region handles millions of trips and anchors the state’s economic activity. A collapse in the largest transit system in the Midwest would have had consequences far beyond the city and suburbs.

How the State Is Paying for the Transit Plan

One of the most important features of this legislation is that it avoids new statewide taxes. Instead, lawmakers shifted existing revenue sources to support transit. Much of the annual funding comes from diverting a portion of the state’s motor fuel sales tax and the interest from the state’s Road Fund into transit operations. That shift alone is expected to generate about $860 million each year, with additional support coming from a targeted sales tax increase in Cook and its surrounding counties.

Because these revenue changes are region-specific, downstate residents will not see a new statewide sales tax added to their receipts. However, the shift of Road Fund resources has been a point of tension. Downstate lawmakers across party lines expressed concern that pulling fuel sales tax revenue away from the Road Fund could eventually affect funding for roads, bridges, and infrastructure projects outside the Chicago area, which heavily rely on that fund. [lawinfo.com]

The bill also opens the door for toll increases on northern Illinois tollways—up to an estimated 45 cents more per trip for passenger vehicles—pending approval by the Illinois Tollway Board. These toll changes would primarily affect drivers in northern Illinois and those traveling into or through the Chicago region, not those staying within downstate communities.

What Downstate Illinois Gains

While the majority of the new funding goes to stabilizing Chicago’s system, there is still a meaningful impact for downstate transit providers. According to legislative reporting, downstate transit districts are expected to receive between $129 million and $150 million in operational support each year under the new law. Although this is less than the $200 million that downstate agencies collectively advocated for, it still provides a more reliable funding stream than what many districts previously had access to.

For downstate residents, this funding means the possibility of more dependable bus routes, improved paratransit service for seniors and individuals with disabilities, better evening and weekend coverage for workers and students, and the potential for upgraded vehicles and facilities. These day-to-day improvements can make a major difference in mobility for communities that already struggle with limited transportation options.

A New Transit Authority—But Centered on Northern Illinois

The law also creates a new administrative body called the Northern Illinois Transit Authority (NITA), which will coordinate Chicago-area systems and oversee unified fares, schedules, and safety standards. While this reform does not directly govern transit operations downstate, the modernization of technology, safety protocols, and planning standards often influences statewide expectations and creates opportunities for downstate agencies to adopt similar tools or receive support through state-administered programs.

The Road Ahead: Opportunities and Challenges for Downstate

The new transit law is both an investment and a challenge for downstate Illinois. On one hand, downstate transit agencies finally have more predictable annual operational funding, though not as much as originally requested. That predictability gives local systems an opportunity to stabilize and expand, improving access to work, healthcare, and education for residents who rely on public transportation.

On the other hand, the diversion of Road Fund revenue means downstate communities must remain attentive to future state transportation plans. The Road Fund supports major infrastructure and highway improvements across Illinois. Any reduction in its strength could affect long-term project timelines, even if the short-term impacts are still unknown.

The benefits to downstate are indirect as well. When the Chicago region avoids a transit collapse, the rest of the state avoids the ripple effects—less congestion for freight carriers, stronger intercity travel links, and a healthier statewide economy that depends on Chicago’s stability. A transportation crisis in northern Illinois would have been a crisis for the entire state.

What This Means for Downstate’s Future

Downstate leaders now have an opportunity to push for additional improvements and ensure this new transit law becomes a foundation—not the ceiling—for regional transportation equity. Central and southern Illinois deserve modern, reliable transportation too, and sustained investment will be essential.

For now, this $1.5 billion annual law prevents a major statewide disruption and offers new resources for downstate agencies to build from. But it also sends a clear message: downstate communities must continue demanding a fair share of transportation investment so that the entire state can move forward together.

If Illinois truly wants a world-class transportation system—as Governor Pritzker mentioned when signing the bill—it must work for every Illinois resident, not just those near the CTA tracks.