In an effort to prevent SEPTA from going into “transit death spiral,” Governor Josh Shapiro today announced that he has directed a significant transfer of $153 million from federal highway monies to the Southeastern Pennsylvania Transportation Authority (SEPTA). This change in funding, which was initially intended for seven highway projects that are still in the planning stages, is expected to prevent severe service reductions and fee increases that are expected to occur in January 2025, at least until July of that year, according to NBC10.
In response to a stark budget proposal rejected by state lawmakers, SEPTA first announced plans to cut services by 20% and raise fares by 29% in the new year. This would have given the transit agency an extra $161 million. However, a resolution introduced by the Philadelphia City Council and unanimously passed yesterday urged the state to reallocate those funds to SEPTA, and the governor complied. According to Philadelphia Voice, this intervention provides a reprieve from future price increases, but it does not stop the upcoming 7.5% fare raise that was approved by the SEPTA Board and is scheduled to go into effect on December 1.
“These funds will come from seven different highway projects across the state, but none of those highway projects are under construction yet,” the governor said, underscoring the significance of this step. None of them have even been offered for sale. A long distance off, that is. NBC10 recorded a press conference during which the speaker stated, “There is no reason to keep that money on our balance sheet in the state when we can invest it in SEPTA right now and help this community.””I think we have a huge opportunity in front of us with USA 250 coming to Pennsylvania and we need SEPTA to be able to support that and I’ve made clear I will not let SEPTA fail,” Shapiro said, emphasizing the importance of SEPTA’s continued effectiveness and functionality for important upcoming events like America’s 250th anniversary, the FIFA World Cup, and the MLB All-Star Game scheduled for 2026.
SEPTA’s financial issues remain unresolved despite this money reallocation; the organization still experiences a $240 million yearly structural budget shortage. According to 6abc, the governor’s short-term fix recognizes the urgent need for a long-term financial fix and better budgeting for the transit system, which will be vital to bolstering Pennsylvania’s economy and offering affordable transportation to countless residents. Despite being a short-term solution, Shapiro’s plan serves as a springboard for longer-term funding negotiations with the Legislature, where more legislation assisting with highway and mass transportation projects is expected to be introduced in the upcoming legislative session.
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