CTA Budget 2026: Impact on Chicago Rail, Fare Hikes & Service

CTA unveils three 2026 budget proposals, hinging on Illinois funding. Proposed budgets include fare hikes for **rail** and address the agency’s funding gap.

CTA Budget 2026: Impact on Chicago Rail, Fare Hikes & Service
October 17, 2025 6:54 am
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Introduction

On Monday, the Chicago Transit Authority (CTA) presented three operating budget proposals for fiscal year 2026, contingent on funding decisions from the Illinois State Legislature.

Operating Budget Proposals

The CTA is addressing a budget deficit due to the depletion of federal COVID-19 relief funds, a challenge shared by numerous transit agencies nationwide. The agency is seeking a long-term funding solution from the Illinois State Legislature.

The proposed budgets represent different scenarios based on potential funding outcomes, encompassing service maintenance, growth, or decline. Each budget proposal includes a fare increase, as mandated by the Regional Transportation Authority. The CTA has not implemented a fare increase since 2018.

Fare Increase Details

Effective February 1, the base rail fare will increase by 25 cents. Additionally, daily, weekly, and monthly passes will also see price adjustments.

Budget Scenarios

Budget A is the baseline proposal, assuming the CTA receives standard state funding to address the existing structural funding gap. Budget B aims to close the budget gap and facilitate service improvements. Conversely, Budget C anticipates significant service cuts, reflecting the operational adjustments required if the agency does not receive funding to address its structural gap.

Last June 2025, we published an article about Renfe’s Aranjuez maintenance hub. Click here to read – Future of Rail: Renfe’s Railway Technology Hub, Aranjuez: Essential Guide

Conclusion

The Chicago Transit Authority has proposed three operating budgets for fiscal year 2026, contingent on funding from the Illinois State Legislature. These budgets account for varying outcomes, from maintaining current service levels to significant service cuts, each including a fare increase.

Company Summary

Chicago Transit Authority (CTA): The CTA is a public transportation agency serving the city of Chicago and surrounding areas.

Regional Transportation Authority: The Regional Transportation Authority is a regional financial oversight board for public transportation in the Chicago metropolitan area.

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