Metra’s 2026 Budget: Illinois Rail Investment Boosts Infrastructure

Metra’s 2026 budget approves a $1.2 billion operating budget, avoiding fare hikes. The new capital program, focusing on railway infrastructure, is set at $515.3 million.

Metra’s 2026 Budget: Illinois Rail Investment Boosts Infrastructure
November 18, 2025 9:54 am
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Introduction

The Metra Board of Directors has approved a USD 1.2 billion operating budget and a USD 515.3 million capital program for 2026, avoiding fare increases and service reductions. These decisions follow new state funding measures passed by the Illinois Legislature and are influenced by the impending depletion of federal COVID-19 relief funds.

Operating Budget Details

The approved USD 1.2 billion operating budget for 2026 eliminates previously proposed fare increases and service reductions. This budget includes USD 55 million for costs associated with the Northern Indiana Commuter Transportation District’s (NICTD) construction program on the Metra Electric Line, which NICTD will reimburse. Excluding these costs, the operating budget is approximately USD 50 million higher than in 2025. This increase accounts for inflationary pressures, contractual increases, higher costs from UP and BNSF-operated services, vacancy reductions, and additional service provision.

Budget Adjustments

In October, Metra initially proposed a 2026 budget that included fare increases and internal capital transfers to address a projected funding gap. The new state support has allowed Metra to withdraw these measures, covering an expected USD 27.9 million shortfall while funding modest service increases. Consequently, a planned USD 60 million operating-to-capital transfer has been removed from the final budget.

Capital Program Overview

Metra’s USD 515.3 million capital program for 2026 will continue major investments in bridges, stations, and Metra’s rolling stock fleet. Funding for the capital program includes:

  • USD 258 million from federal sources.
  • USD 196 million from the state of Illinois.
  • USD 61.3 million from other sources.

The plan allocates:

  • USD 215 million for track and structures.
  • USD 141.5 million for rolling stock.
  • USD 158.8 million for stations, signals, and other projects.

Funding Sources

Funding for the operating budget consists of:

  • USD 506 million from fare revenue.
  • USD 445 million from the Regional Transportation Authority (RTA).
  • USD 212 million from the state of Illinois.
  • USD 37 million from other sources.
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Conclusion

Metra’s 2026 budget and capital program have been submitted to the Regional Transportation Authority (RTA) for final approval. The approved USD 1.2 billion operating budget avoids fare increases and service reductions due to new state funding. The USD 515.3 million capital program will continue significant investments in infrastructure and rolling stock.

Company Summary

Metra: The operator of commuter rail services in the Chicago metropolitan area.

Northern Indiana Commuter Transportation District (NICTD): An organization responsible for public transportation in Northern Indiana.

BNSF: A Class I freight railroad operating in North America.

UP: A Class I freight railroad operating in North America.

Regional Transportation Authority (RTA): The financial oversight body for public transportation in the Chicago metropolitan area.