The Metra Board of Directors on Thursday, Nov. 13, approved a $1.2 billion operating budget for 2026 that relies on new state funding and requires no fare increases or service cuts. It also approved a $515.3 million capital plan that continues major investment in bridges, stations, and new and rehabilitated rolling stock.

After Metra introduced its 2026 budget in October, the Illinois Legislature approved reforms and significant new funding for public transportation in northeast Illinois. The legislation was prompted by the pending exhaustion of federal COVID-relief funding that Metra and other transit agencies have been using to balance budgets since the COVID-19 pandemic. Metra expects its COVID funding to run out in the fourth quarter of next year.

The new funding allowed Metra to revise its budget to eliminate a proposed fare increase and fund modest service increases while still covering an expected $27.9 million shortfall. The revised budget also eliminates a planned $60 million transfer from the operating budget to its capital plan.

The $1.2 billion budget includes $55 million for costs related to a Northern Indiana Commuter Transportation District (NICTD) construction project that expands capacity on the Metra Electric Line, which is being reimbursed by NICTD. Excluding that cost, the budget for operations is about $50 million higher than the 2025 budget. The increase is due to expected inflationary, contractual, and market increases; modest service increases; successful filling of vacancies; and higher costs related to UP and BNSF service.

The budget is funded by system-generated revenue of $305.1 million, including $187.9 million in fares. It also is funded by $635.9 million in regional sales tax receipts, Metra’s remaining $206.1 million in federal COVID-relief funding, and $27.9 million in new funding.

The $515.3 capital program is funded by $426.7 million in federal formula funding and discretionary grants, $88.6 million in Illinois PAYGO funding, and $100,000 in an RTA Access to Transit grant. The program allocates $268.2 million to rolling stock; $68.5 million to bridges, tracks and structures; $59.1 million in signals, electrical and communications; $27.3 million in facilities and equipment; $59.9 million in stations and parking; and $32.3 million in support activities.

The budget now goes to the RTA for its final approval.