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CHICAGO - Metra has approved a $1.2 billion operating budget for 2026 that, if finalized, will not include fare hikes or service reductions.
What we know:
The Metra Board of Directors approved the 2026 operating budget Thursday. The plan relies on new state funding and does not require any fare increases or service cuts, the agency said.
The board also approved a $515.3 million capital program that continues major investments in bridges, stations, and new and rehabilitated rail cars.
Metra first introduced its 2026 budget in October. The Illinois Legislature later passed reforms and new funding measures for public transportation in northeastern Illinois.
The legislation followed the expected depletion of federal COVID-19 relief funding, which Metra and other transit agencies have used to balance budgets since the pandemic.
That federal funding is projected to run out in the fourth quarter of next year.
With new state funding, Metra was able to revise its budget to eliminate a proposed fare increase and support modest service expansions while still covering a $27.9 million shortfall.
The plan also removes a previously planned $60 million transfer from the operating budget to the capital program.
Budget breakdown:
The $1.2 billion operating budget includes $55 million for costs related to a Northern Indiana Commuter Transportation District construction project that will expand capacity on the Metra Electric Line.
Excluding that expense, the operating budget is about $50 million higher than in 2025, Metra said.
The increase reflects inflationary, contractual, and market-related costs, modest service expansions, the filling of staff vacancies, and higher costs associated with Union Pacific and BNSF service, according to Metra.
The 2026 budget will be funded by $305.1 million in system-generated revenue and $635.9 million in regional sales tax receipts. Metra’s remaining $206.1 million comes from federal COVID-19 relief funds and $27.9 million in new state funding.
What's next:
The budget now heads to the Regional Transportation Authority for final approval.
The Source: The information in this article was provided by Metra.