CTA board approves 2026 ‘gap‑filled’ operating budget and places $6.75 billion CIP on omnibus after state funding boost

The Chicago Transit Authority board reviewed and moved onto the omnibus a 2026 operating budget and a $6.75 billion, five‑year capital improvement program after CTA finance officials said a recently passed state funding package closed a previously projected revenue gap.

Tom McCone, CTA chief financial officer, told directors the operating plan will avoid service cuts and layoffs and that the agency will not implement a previously proposed 10% fare increase because the legislature allocated what staff described in the meeting as $142,000,000 under “senate bill 21 11.” McCone said September results show fare revenue slightly under forecast but that non‑fare revenue and stronger public funding leave the year‑to‑date revenue position positive to budget. He summarized the operating position as $12.7 million positive to budget for the month and about $23.3 million better than the prior year.

McCone outlined the capital program and its funding mix: federal formula funds, state motor fuel tax, RTA‑administered discretionary programs (ICE), a transit TIF tied to the Red Line Extension and federal investment for the Red Line Extension that staff said will total about $2.0 billion, with CTA bonds providing the required local match. The five‑year capital improvement program covers major projects including the Red Line Extension, an all‑stations accessibility program, vehicle procurements and station and facility upgrades.

Acting president Nora Liss described the adopted budget as a ‘‘gap‑filled’’ plan that preserves baseline service while staff work with the Regional Transportation Authority to secure an additional unallocated regional portion — described in the meeting as more than $300 million — that could fund expansionary investments. Liss and McCone said the agency plans to seek an amended budget when those regional funds are allocated; until then, the approved budget focuses on maintaining current service levels and preserving $60 million in efficiencies already included in the plan.

Board members pressed staff on timing and implementation. Management said much of the incremental funding will arrive in the second half of the year and stressed that hiring, procurement and service scheduling take time; directors requested monthly updates on RTA discussions and urged that initial priorities be safety, cleaning and increased frequency.

The board voted to place the operating budget ordinance and the 2026–2030 capital program ordinance on the omnibus for board approval by roll call (votes recorded in the meeting). The motion to include both items on the omnibus passed, and the finance committee later recommended the omnibus for board approval.

What happens next: CTA staff said they will return with an amended budget if and when RTA allocates the unassigned regional funds. The board asked for regular updates on the regional allocation process and implementation planning.