SEPTA announces FY26 budget-cutting measures

The Southeastern Pennsylvania Transportation Authority (SEPTA) last week released a budget proposal that would require a 45% cut in services, significant fare increases, workforce reductions and a 9 p.m. "curfew" on all rail services to address a budget deficit in fiscal-year 2026.

The budget's release comes amid critical negotiations at the State Capitol on a statewide transit funding plan introduced in February by Gov. Josh Shapiro that would prevent such measures from taking effect, SEPTA officials said in a press release.

Significant reductions in trips on all rail services and the elimination of dozens of bus routes would take effect Aug. 24 with the launch of fall schedules; a fare increase averaging 21.5% for all riders would take effect Sept. 1; and five Regional Lines would be eliminated and the 9 p.m. curfew on rail service would take effect on Jan. 1. The FY2026 budget starts July 1.

Like transit agencies across Pennsylvania and the nation, SEPTA is facing a 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. The federal COVID funds helped SEPTA maintain service for essential workers through the pandemic. While ridership has recovered over the past few years, SEPTA has had to take on additional costs to address emerging challenges, including crime and the impact of inflation on the cost of fuel, power and supplies, SEPTA officials said.

The agency responded to the funding issues by cutting costs and generating new revenue. Other measures, including a 7.5% fare increase and the resumption of paid parking at Regional Rail lots, generated new revenue. Combined, those efforts helped reduce SEPTA’s budget deficit from $240 million to a forecasted $213 million for FY2026, SEPTA officials said.

Funding constraints and inflation also will affect SEPTA's capital budget; SEPTA would close the funding gap by deferring dozens of projects and other capital-funded initiatives, agency officials said.

SEPTA's board is expected to vote June 26 on the agency's proposed FY26 budget. For more information about the agency's budget concern, click here.