Illinois lawmakers approved a $1.5 billion transit funding package to prevent major service cuts in Chicago, including new revenue sources like sales tax redirects, toll increases, and no fare hikes for a year, while removing proposed taxes on streaming and luxury goods. The bill aims to address the transit agencies' financial struggles caused by pandemic-related ridership drops and federal grant reductions.
Illinois House Democrats proposed a plan to raise over $1 billion for Chicago area transit through new taxes, but Gov. JB Pritzker rejected the plan, citing the need for further negotiations. Without a funding agreement, transit agencies warn of significant service cuts and fare hikes, risking job losses and reduced mobility for residents.
The Trump administration is withholding federal funds from Chicago's transit projects, citing concerns over racial and gender-based contracting policies, amidst broader government shutdown issues affecting transportation funding and projects like New York's Gateway Program and Second Avenue Subway.
President Trump froze $2.1 billion in Chicago transit funds amid a government shutdown, which has frozen at least $26 billion in funds for Democratic cities and states, as Congress struggles to pass a funding deal, risking disruptions across various federal services and programs.
