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10/13/2025
Metra's proposed 2026 operating budget of $1.1 billion includes what would be the Chicago commuter railroad's first fare increase since 2018.
The Regional Transportation Authority, which oversees Metra, mandated Metra to increase fares by at least 10% in 2026 to address budget deficits, Metra officials said in a press release. Metra fares will increase 13% to 15% depending on the fare structure, they said.
The fare increase and other measures will cover a projected $68 million shortfall without requiring service cuts. Metra also proposed a $575.3 million capital plan for 2026 with investments in bridges, stations, new and rehabilitated rolling stock.
The $1.1 billion proposed operating budget is 1.7% lower than the 2025 budget. This decrease is largely driven by operating efficiency, Metra officials said. The budget proposes system-generated revenue of $325 million, $635.9 million in regional sales tax revenue and $206.1 million in remaining federal COVID-relief funding.
The $573.3 million capital plan is proposed to be funded by $426.7 million in federal funding and discretionary grants, $88.6 million in Rebuild Illinois funds, $100,000 in an RTA Access to Transit grant, and $60 million from fare revenue. The plan allocates $268.2 million to rolling stock; $69.4 million to bridges, tracks and structures; $59.1 million to signals, electrical and communications; $27.3 million to facilities and equipment; $59.9 million to stations and parking, and $92.3 million to support activities, Metra officials said.
Metra initially expected to be facing a larger funding shortfall in 2026 due to the exhaustion of federal COVID-19-relief funding, which has supported Metra as fare revenue fell short due to lower post-pandemic ridership. Metra will cover the $68 million shortfall by delaying service expansions, prioritizing hiring, delaying discretionary spending, having better operating results and higher sales taxes, Metra officials said.
Metra will host in-person public hearings on the budget on Nov. 5 and 6, and a virtual public hearing on Nov. 5. More information on the public hearings can be found here.