Illinois Transit Legislation Sees Cleanup Bill Amid Funding Concerns

Illinois lawmakers have passed a transit ‘trailer bill,’ HB2335, intended to make minor adjustments and clerical fixes to the Northern Illinois Transit Authority Act (NITA Act) following its late-night passage last year. The cleanup legislation, championed by Senator Ram Villivalam and Representative Eva-Dina Delgado, aims to “solidify and streamline” aspects of the NITA Act’s implementation. This follows a pattern of major legislation being passed within ‘shell bills’ to expedite their journey through the General Assembly.

The transit trailer bill, which effectively gutted and replaced a bill concerning “expanded-use antique vehicles,” addresses various updates. These include correcting typographical errors and redirecting misplaced references, such as the renaming of the “Office of Disability of Policy and Planning” to the “Office of Disability Policy and Planning.” More substantive changes involve timeline extensions for entities facing tight deadlines following the NITA Act’s June 1st implementation.

HB2335 will become law upon Governor Pritzker’s signature, taking effect immediately without a delayed implementation period. The bill outlines subsequent changes adopted under the trailer bill, impacting transportation policy, capital infrastructure, funding structures, service planning, minimum parking requirements, board compositions, and labor and contracting.

Key facts

Executive Branch Preparation

In parallel with legislative efforts, the executive branch is actively preparing for the NITA Act’s implementation. The Illinois Department of Transportation (IDOT) is in the process of procuring a contractor to aid in the transition from the Regional Transportation Authority (RTA) to NITA. A request for proposals was issued to potential contractors, with submissions due by April 27. While a selection has not yet been announced, the chosen contractor will assist in preparing a final transition recommendation report, due by July 1, 2027. The NITA board will then have three months to review and act upon this report.

Funding Shift Raises Red Flags

A significant development accompanying the legislative updates is the state’s decision to balance its budget by transferring $150 million from the Road Fund into the General Revenue Fund. This sum was originally earmarked for the Public Transportation Fund. The Road Fund has experienced higher-than-expected revenue due to the state sales tax on gasoline being indexed to the price, rather than the volume, of fuel.

This diversion has drawn criticism from groups such as the Illinois Clean Jobs Coalition and RTA Chairman Kirk Dillard, who have warned that repeating such actions in the future could jeopardize long-term transit funding in Illinois. While national discussions have touched upon suspending gas taxes to alleviate high fuel prices, experts caution against this approach. Illinois has not followed neighbouring Indiana in suspending its gas tax entirely. However, drivers will not face an automatic 1.3 cents per gallon increase in the Motor Fuels Tax on July 1, as this increase has been halted.

The operational and financial implications of these funding shifts, alongside the administrative adjustments to the NITA Act, will be critical to monitor as Illinois navigates its public transportation future. The clarity provided by the trailer bill on implementation details, contrasted with the uncertainty surrounding dedicated transit funding, presents a complex landscape for the state’s transit agencies and users.

Source: Streetsblog Chicago – There is a train directly behind this one: A follow-up bill for the NITA Act – https://chi.streetsblog.org/2026/06/18/there-is-a-train-directly-behind-this-one-a-follow-up-bill-for-the-nita-act