Chicago’s three major transit providers— the Chicago Transit Authority, Metra and Pace— face a combined budget gap of roughly $771 million in 2026 as federal pandemic relief expires. Agency officials warn the shortfall could force service reductions of up to 40 percent and substantial fare increases unless fresh state funding is secured. To buy time, the Regional Transportation Authority is due to vote on a proposal to shift $74 million in discretionary funds from Metra and Pace to the CTA. The one-year reallocation would postpone the CTA’s fiscal cliff by two to three months, stretching its cash through mid-2026 while legislators debate a longer-term solution. Three Chicago-area state senators have urged colleagues to reconvene before 31 August, arguing that without immediate action as many as 40,000 transit employees could receive layoff notices in early September. Governor J.B. Pritzker said a broader financing package is being drafted for the General Assembly’s October veto session but offered no details on revenue sources. Transit executives and civic advocates warn that delaying a funding fix raises the risk that planned service cuts become irreversible, undermining economic activity across northeast Illinois. They continue to press lawmakers for a stable revenue stream that would avert layoffs and maintain region-wide bus and rail coverage.