CTA committee forwards 2026 budget and $6.75B five‑year capital plan after state funding fills gap

The Chicago Transit Authority’s Finance, Audit & Budget Committee voted to place on the omnibus the agency’s 2026 operating budget, the 2027–28 financial plan, and a five‑year (2026–2030) capital improvement program estimated at $6.75 billion after state funding reduced a projected shortfall, officials said.

Tom McCone, CTA’s chief financial officer, told the committee the agency developed three budget scenarios—baseline (maintain service), expansionary (invest in growth) and reduced (service cuts and up to 20% layoffs). He said recent Illinois legislation provided an allocation commonly referenced in committee materials as SB 211 / SP 21‑11, which contributes approximately $141–142 million to eliminate the remaining gap and allows CTA to adopt the baseline without service cuts or layoffs and to drop a previously proposed 10% fare increase. “The funding levels are consistent with our expansionary scenario,” McCone said, noting CTA expects roughly 4.2 million additional rides in 2026 under current service levels.

McCone outlined revenue and expense drivers: year‑to‑date public funding favorable by $86.6 million, system revenues up vs. last year though slightly under forecast on farebox receipts, and operating expenses running $72.4 million below budget year‑to‑date due in part to contractual and one‑time credits. He also described capital funding sources—federal formula funds, state motor fuel tax, the RTA‑administered ICE discretionary program, transit TIF for the Red Line Extension and CTA bond matches—and listed major capital priorities including the Red Line Extension, all‑stations accessibility, a vehicle program and station/facility improvements.

Board members pressed staff on implementation timing for expansion items that rely on additional regional allocations; McCone said more than $300 million at the regional level remained unallocated and would require an amended RTA funding action before CTA could proceed with some “green” expansion items, and that many expenditures would not materialize until the second half of the year due to hiring and scheduling lead times. Chairman Barclay requested monthly updates on RTA discussions; staff agreed.

Director Ortiz moved and Director Jha seconded placing the operating budget and capital program on the omnibus; roll‑call votes were unanimous, and the motions passed at the committee. The ordinances and contracts were then presented to the full board omnibus for consideration later in the meeting.