Chicago Commuter Rail to Increase Fares to Plug Budget Gap

(Bloomberg) — Chicago’s commuter rail is poised to raise fares to offset a budget deficit that threatens to devastate the region’s public transit service.

Metra, the commuter rail system that provides transportation between Chicago city center and the suburbs according to the public transportation system, announced a $1.1 billion budget for 2026 on Friday; That budget includes a 13 percent to 15 percent fare increase to cover a projected $68 million shortfall, according to the transit system in a press release. The agency increased ticket prices for the first time since 2018.

The increase is part of a broader effort mandated by the Regional Transportation Authority, which oversees the financing of the region’s buses and rail agencies, to raise revenue to help keep the system afloat. The Chicago Transit Authority and bus agency Pace also expect fiscal shortfalls next year and have been urged by the RTA to raise fares by at least 10%.

While Metra expects to close the current budget gap by postponing discretionary spending and service expansions, it projects a fiscal cliff of $276.3 million in 2027 and a budget deficit of $304.8 million in 2028, according to the statement. If the Illinois legislature doesn’t increase funding for the region’s transit in a timely manner, the system will be forced to cut service.

Chicago’s woes are part of a growing fiscal crisis playing out in urban transportation systems across the country. Philadelphia’s public transportation system has yet to come up with a long-term financial solution that will prevent service cuts and future fare increases. San Francisco Bay Area Rapid Transit also faces a budget shortfall that could lead to severe cuts to its services.

Metra also proposed a $575.3 million capital plan that would provide continued investment in bridges, stations and both new and rehabilitated rolling stock. Metra’s Board of Directors will vote on the changes, including the fare increase, in November, according to the press release.

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