Governor Shapiro Allocates $153 Million to SEPTA Amid Funding Crisis
HARRISBURG — In a significant move to support the struggling Southeastern Pennsylvania Transportation Authority (SEPTA), Governor Josh Shapiro announced Friday that $153 million in federal highway funding will be directed to the transit agency. This allocation aims to mitigate drastic service cuts and fare hikes that had been set to impact riders imminently.
SEPTA had recently indicated plans to implement substantial fare increases, including nearly a 50% hike for riders using its key card system by 2025. The urgent funding announcement comes as the agency grapples with a $240 million deficit exacerbated by rising inflation, decreased ridership linked to remote work, and the expiration of federal pandemic aid.
While this financial injection offers temporary relief, SEPTA warns that without additional funding, it will be forced to reduce services starting July 1, 2025. Advocacy groups express concern that such cuts can create a downward spiral: diminished service could deter riders, leading to a further decline in revenues.
Pennsylvania currently contributes roughly $2 billion to over 50 public transit agencies statewide, with SEPTA receiving $757 million in state sales tax revenue in 2023 for operational costs. However, the need for more sustainable funding is evident. The recent funding route leverages federal gas tax revenues, bolstered by the Bipartisan Infrastructure Law, and follows a pattern of Democratic governors using executive power to address transit financing challenges without full legislative approval.
As discussions of transit funding resume in the Pennsylvania General Assembly, both parties acknowledge the necessity for a collaborative solution that addresses transportation needs statewide. Governor Shapiro’s push for increased annual transit funding remains a priority amid ongoing negotiations, as stakeholders seek to stabilize and enhance public transit infrastructure for the future.
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