Shapiro Administration Approves Short-Term SEPTA Funding Fix Amid Budget Impasse
Source: PA Chamber of Business and Industry
This morning, Gov. Josh Shapiro’s office approved a request from the Southeastern Pennsylvania Transportation Authority (SEPTA) to shift up to $394 million in future capital funding toward daily operations. The move allows the transit agency to maintain service levels and avoid planned cuts for the next two years.
The decision gives SEPTA access to funds from the 2025-26 fiscal year that had not yet been committed to projects, meaning no already-obligated Public Transportation Trust Fund dollars will be redirected. SEPTA leaders said the shift is not ideal but will stabilize operations while policymakers continue to debate a long-term solution.
The approval comes against the backdrop of a state budget that is more than two months late and ongoing partisan disagreements over transit funding. In its announcement, the governor’s office cited an economic analysis showing that SEPTA’s planned service cuts would have cost the region $6 billion in long-term earnings and eliminate 76,000 jobs.
Democrats, including Gov. Josh Shapiro, have pushed for recurring revenue to support agencies like SEPTA and Pittsburgh Regional Transit (PRT). Senate Republicans, meanwhile, have backed short-term approaches such as using capital funds for operations and have tied long-term support to reforms on issues like fare evasion and financial accountability.
While SEPTA made the official request, PRT and other transit systems are also expected to be eligible to pursue similar relief. Leaders in Allegheny County have warned that PRT faces many of the same financial pressures as SEPTA, driven by post-pandemic ridership declines and the expiration of federal stimulus aid.
In a letter to PennDOT last week, SEPTA General Manager Scott Sauer said the funding flexibility was needed after a court ruling required the agency to restore service cuts. SEPTA still plans to implement a 21.5 percent fare increase on Sept. 14, but will bring bus and metro service back online the same day.
The Shapiro administration attached conditions to the approval, requiring SEPTA to report every 120 days on steps the agency is taking to address structural challenges and improve efficiency.
Access to future-year capital allocations could provide short-term stability, but it will not resolve underlying funding gaps. As such, the PA Chamber will continue working with policymakers and stakeholders to advance a long-term, sustainable transportation funding solution that supports both transit and highway needs and strengthens Pennsylvania’s economic competitiveness.