On February 6, 2025, Senator Ram Villivalam (D-Chicago) filed SB 1938 (linked here). The bill was developed by a labor-backed coalition calling itself the Labor Alliance for Public Transportation, a group pursuing reforms for transit in the Chicago metropolitan area. The bill proposes an alternative approach to the traditional motor fuel tax system, includes reforms affecting the authority and structure of transit-related boards, and directs the consolidation of fare collection systems. Unlike transit reform legislation introduced in 2024, SB 1938 does not propose the merger of the Chicago Transit Authority (CTA), Metra, Pace, and the Regional Transportation Authority (RTA).
The provisions within the bill are summarized below:
Road Usage Charge Advisory Committee
The proposed legislation establishes a Road Usage Charge Advisory Committee, tasked with guiding the development and evaluation of a pilot program that assesses mileage-based revenue as a potential funding model for highway maintenance and improvements. Its membership includes a diverse range of stakeholders who will evaluate the feasibility of charging vehicle owners based on the number of miles traveled on public roadways rather than relying solely on fuel taxes.
Statewide Pilot Program Implementation
The Illinois Department of Transportation, in consultation with the Secretary of State, is required to implement a statewide pilot program by January 1, 2026. This program will assess user fees for vehicle owners based on miles traveled. Insights gained from this pilot will shape future policies concerning transportation revenue collection.
Amendments to Transit Authority Regulations
Metropolitan Transit Authority Act Changes
- Beginning February 1, 2026, the Chicago Transit Board will expand from 7 to 8 members.
- Adjustments will be made to the number of affirmative votes required by Directors to issue bonds, reflecting the expansion in board membership.
Regional Transportation Authority Act Adjustments
The Annual Budget and 2-Year Financial Plan must ensure that fare revenues cover:
- At least 25% of total operating costs for fiscal years 2026 and 2027.
- At least 15% of operating costs for fiscal years 2028 and beyond.
- Starting July 1, 2026, the Regional Transportation Authority (RTA) will become the sole agency managing and overseeing fare collection systems for all public transportation providers.
- Adjustments will be made to the Suburban Bus Board and Commuter Rail Board membership structures.
Modifications to Voting and Oversight Requirements
Several provisions alter the voting structure and authority of transit-related boards, including:
- Strategic plan approvals
- Coordination of fares and service
- Appointment of officers and employees
- Oversight of paratransit services
- Powers of the Commuter Rail Board
- Budgeting, taxation, revenue distribution
- Issuing and pledging bonds and notes
- Annual capital improvement plans
- Rate protection contracts
The Road Usage Charge Act represents a significant shift in transportation funding, aiming to develop a sustainable, mileage-based approach to highway funding. With the introduction of a statewide pilot program, modifications to transit authority structures, and new financial planning requirements, this legislation seeks to create a fair and effective system for funding Illinois' transportation infrastructure. The Act takes effect on January 1, 2026.