SEPTA's board approves budget with service cuts, fare hikes

The Southeastern Pennsylvania Transportation Authority's board yesterday approved the fiscal-year 2026 operating budget, which will cut service by 45% and raise fares by 21.5% to fill a $213 million recurring budget deficit.

Starting Aug. 24, there will be significant reductions in all rail services. Then on Sept. 1, a fare increase averaging 21.5% will go into effect. The new base fare for SEPTA Metro trips will be $2.90, agency officials said in a press release. SEPTA also will implement a hiring freeze. 

On Jan. 1, 2026, SEPTA will eliminate five of its Regional Rail lines and implement a 9 p.m. curfew on remaining rail service. The service cuts will "effectively dismantle" SEPTA, and it will be nearly impossible to reverse, SEPTA General Manager Scott Sauer said.

The $213 million budget gap is due to a combination of the end of federal COVID-19 relief funding and increases to the cost of providing services. Federal COVID-19 funding helped SEPTA maintain service, and while ridership has recovered over the past few years, SEPTA has taken on additional costs in recent years to combat crime on the transit system. While the transit authority has been cutting cuts and increasing revenue, it was unable to close the budget gap, SEPTA officials said.

By law, SEPTA has to pass an operating budget before July 1, but the authority is still urging state representatives to approve state funding for the transit system, SEPTA officials said. Pennsylvania Gov. Josh Shapiro proposed a transit funding plan earlier in 2025, and the Pennsylvania House of Representatives last week advanced the proposal.