Summary as Introduced
Creates the Road Usage Charge Act. Establishes the Road Usage Charge Advisory Committee to guide the development and evaluation of the road usage charge pilot program and to assess the potential for mileage-based revenue as an alternative to the current system of taxing highway use through motor fuel taxes. Sets forth the membership and duties of the committee. Requires the Department of Transportation, in consultation with the Secretary of State and based on the recommendations of the Committee, to implement a statewide pilot program by January 1, 2026 to assess a user fee on owners of motor vehicles that is based on the number of miles traveled on public roadways in this State by those vehicles. Amends the Metropolitan Transit Authority Act. Provides that, on and after February 1, 2026, the Chicago Transit Board shall have 8 members (currently 7 members). Makes changes to the number of affirmative votes by Directors required to issue bonds. Amends the Regional Transportation Authority Act. Provides that the Annual Budget and 2-Year Financial Plan must show that the aggregate of all projected fare revenues from fares and charges for mass transportation provided by, or under grant or purchase of service contracts of, the Service Boards received in fiscal years 2026 and 2027 shall equal at least 25%, and in fiscal years 2028 and 2029 and every year thereafter at least 15%, of the aggregate cost of providing such public transportation in those fiscal years. Provides that, beginning July 1, 2026, the Regional Transportation Authority shall be the sole agency responsible for the management and oversight of the fare collection systems used on all public transportation provided by the Service Boards. Makes changes to the membership of the Suburban Bus Board and the Commuter Rail Board. Makes changes to the number of affirmative votes required by the Directors of the Authority to approve decisions regarding the strategic plan, coordination of fares and service, appointment of officers and employees, paratransit services, powers of the Commuter Rail Board, labor, budget, taxes, distribution of revenues, issuing and pledging bonds and notes, budget review powers, the annual capital improvement plan, and rate protection contracts. Makes other changes. Effective January 1, 2026.
Staff Analysis
House Bill 2963 introduces a multifaceted proposal to modernize transportation funding and oversight in Illinois, combining a road usage charge pilot program with significant changes to regional transit governance.
Road Usage Charge Pilot Program
The bill establishes the Road Usage Charge Act, which authorizes the Illinois Department of Transportation (IDOT), in consultation with the Secretary of State, to implement a statewide pilot program by January 1, 2026. This pilot will test the viability of a mileage-based user fee system as an alternative to traditional motor fuel taxes, reflecting the growing concern over the sustainability of fuel tax revenues amid increasing fuel efficiency and electric vehicle adoption.
To guide the development and evaluation of the program, the bill creates the Road Usage Charge Advisory Committee, which will include diverse stakeholders and be tasked with making recommendations on the structure and effectiveness of the pilot. The initiative marks a significant step toward long-term, usage-based funding models that align road maintenance costs more directly with vehicle miles traveled.
Chicago Transit Authority and Regional Transit Oversight
HB 2963 also amends the Metropolitan Transit Authority Act, increasing the size of the Chicago Transit Board from 7 to 8 members effective February 1, 2026. It modifies the voting requirements for bond issuance, likely to ensure broader consensus in financial decision-making.
More extensively, the bill revises the Regional Transportation Authority Act to enhance oversight and integration of the Chicago region’s public transportation system:
• Farebox Recovery Ratio Reform: It establishes revised farebox recovery ratio targets for mass transit:
• At least 25% of operating costs covered by fare revenues in fiscal years 2026 and 2027.
• At least 15% in fiscal years 2028 and 2029 and each year thereafter, reflecting a long-term policy shift toward more flexible and sustainable funding expectations.
• Centralized Fare Collection Oversight: Starting July 1, 2026, the RTA will become the sole agency responsible for the management and oversight of fare collection systems for all service boards (CTA, Metra, Pace). This move aims to promote systemwide integration and operational efficiency.
• Governance Adjustments: The bill makes changes to the composition of the Suburban Bus Board and Commuter Rail Board and modifies the required number of affirmative votes by the RTA Board for various strategic and financial decisions—including budgeting, fare coordination, paratransit, bonding, and revenue distribution. These adjustments seek to improve governance transparency and unify strategic transit planning across the region.
Summary
HB 2963 is a comprehensive transportation policy bill that advances two key objectives: (1) exploring a sustainable, mileage-based alternative to motor fuel taxation and (2) reforming regional transit governance to support greater integration, accountability, and financial resilience. The legislation reflects an evolving vision for Illinois’ transportation infrastructure—one that adapts to new mobility trends while addressing funding and coordination challenges across urban and suburban transit systems.