Without action in Harrisburg to provide new funding for transit, on June 26 the SEPTA Board voted to approve the Fiscal Year 2026 Operating Budget, which will cut service by 45% and raise fares 21.5% to fill a $213 million recurring budget deficit.
“This is a vote none of us wanted to take,” said SEPTA Board Chair Kenneth E. Lawrence Jr. “We have worked hard as an Authority to prevent this day from coming because we understand the impact it will have on our customers and the communities we serve. To be clear, this does not have to happen – if state lawmakers can reach an agreement to deliver sufficient, new funding for public transit.”
Under the budget approved by the SEPTA Board today, beginning with the fall schedule change on August 24, customers will first see the elimination of 32 bus routes and significant reductions in trips on all rail services, including the end of special services like Sports Express.
Then on September 1, a fare increase averaging 21.5% for all riders will go into effect. The new base fare for Bus and Metro trips will be $2.90 – tying New York’s MTA for the highest in the country. At the same time, SEPTA will also freeze all hiring, including bus operators. The Authority has worked hard to overcome a chronic shortage of operators that started during the pandemic.
On January 1, service cuts will deepen with the elimination of five Regional Rail lines, more bus routes, and the implementation of a 9 pm curfew on all remaining rail services.
“This budget will effectively dismantle SEPTA – leaving the City and region without the frequent, reliable transit service that has been an engine of economic growth, mobility, and opportunity,” said SEPTA General Manager Scott A. Sauer. “Once this dismantlement begins, it will be almost impossible to reverse, and the economic and social impacts will be immediate and long-lasting for all Pennsylvanians – whether they ride SEPTA or not.”
Like transit agencies across Pennsylvania and the nation, SEPTA is facing this budget gap due to a combination of the end of federal COVID relief funding and increases in the day-to-day costs of providing service to customers. The federal COVID funds helped SEPTA maintain service for essential workers through the pandemic and into the recovery. While ridership has recovered over the last few years, SEPTA has had to take on additional costs to address emerging challenges – particularly crime, disorder, and the vulnerable population. The Authority has also had to grapple with the impact of inflation on everyday necessities such as fuel, power, and supplies.
Already one of the most efficient transit agencies in the nation, SEPTA has been responding to this funding crisis by cutting costs and generating new revenue. Aggressive austerity measures, including a freeze on management pay and cuts to third-party consultants, have resulted in savings of more than $30 million. Other measures, including a 7.5% fare increase and the resumption of paid parking at Regional Rail lots, are generating new revenue. Together, these efforts have helped reduce SEPTA’s budget deficit to a forecasted $213 million for Fiscal Year 2026.
SEPTA is required by law to pass a balanced Operating Budget prior to the start of the new fiscal year on July 1, and the Authority’s only options to close such a massive structural deficit are to raise fares and cut costs by eliminating services and reducing the size of its workforce.
Earlier this year, Governor Shapiro proposed a statewide transit funding plan that would provide new, sustainable funding that would prevent those devastating measures from taking effect and preserve essential transit service statewide. The Pennsylvania House of Representatives last week advanced the Governor’s proposal along with new funding for roads and bridges. With negotiations in Harrisburg underway, SEPTA continues to urge approval of new state funding for transit systems.
SEPTA also approved its Fiscal Year 2026 Capital Budget, which will defer $2 billion worth of projects, including critical station accessibility improvements – delaying better access for millions who rely on Metro and Regional Rail services.
-via Press Release
