We must also ensure the system is healthy enough long-term to be an economic engine for our region.”

Robert Previdi, Save the Train Coalition

Gov. Josh Shapiro will redirect $153 million in federal highway funding to SEPTA, temporarily averting deep service cuts and fare hikes at the struggling transit agency.

"Just like we prepare and maintain our roads and bridges in rural and suburban communities, I think we owe it to the good people of Pennsylvania who take mass transit to be there for them and their families as well," Shapiro said in his announcement on Friday.

The funding allows SEPTA to avoid a planned 30% fare increase on Jan. 1. However, the agency will proceed with eliminating its Key card discount for buses, trolleys, and subways starting Dec. 1, resulting in a 50-cent increase for transit riders and higher fares for commuter rail users.

Robert Previdi, spokesman for Northwest Philadelphia's Save the Train coalition, welcomed the news, and emphasized the need for long-term solutions. 

"While we wish our representatives had already fixed this problem, we're grateful to the governor for stepping in to prevent SEPTA from falling into a death spiral," he said.

"We expect the governor and our local and state representatives to work together next spring to craft a long-term solution to the chronic underfunding of public transit," Previdi continued. "We must ensure the system is healthy enough long-term to be an economic engine for our region and lifeline for so many while offering a climate-friendly alternative to our traffic-clogged roads."

The temporary fix won't fully address SEPTA's $240 million deficit. Board Chair Ken Lawrence warned that service cuts could begin July 1, 2025, without additional funding.

Negotiations for the 2026 budget begin in January, with particular significance as Philadelphia prepares to host the nation's 250th anniversary celebrations, FIFA World Cup, and MLB All-Star game.

Advocates hope these upcoming events catalyze a new era for mass transit – and link its funding to comprehensive support for all transportation infrastructure, including roads, highways, bridges, airports, and the seaport. 

"We must all work together to make sure they're the best possible showcase for our city and point our economy in a direction that is sustainable for years to come," said Previdi.

Pennsylvania currently provides nearly $2 billion to more than 50 public transit agencies statewide, with SEPTA receiving $757 million in state sales tax money in 2023 for operating costs. 

However, SEPTA faces mounting challenges from high inflation, reduced ridership due to remote work, and the end of federal pandemic aid. Transit advocates warn that service reductions could trigger a downward spiral of decreased ridership and further financial strain. 

Shapiro's solution utilizes federal gas tax funds, which totaled almost $2 billion in the 2022-23 fiscal year and increased under the 2021 federal Bipartisan Infrastructure Law.

The move has drawn criticism from Republican legislators. State Senate Majority Leader Joe Pittman (R., Indiana) accused Shapiro of "choosing to politicize and pillage critical infrastructure projects for other districts well outside of SEPTA reach."

Earlier this year, Shapiro proposed $1.5 billion in new state aid for public transit over five years. Republican leaders indicated support only with a stable revenue source, preferring to tax skill games – slot machine-like terminals in taverns and convenience stores. While House Democrats secured a one-time $80.5 million transit boost in the budget, internal GOP disagreements prevented a broader deal.

State House Majority Leader Matt Bradford (D., Montgomery) emphasized the need for bipartisan cooperation. "We are going to spend the next six months in the most serious way possible to get this over the line," he said. "We are not going to let party politics or region stand in the way."

The political landscape remains complex. Democrats will control the state House 102-101 in January, while Republicans maintain a 28-22 majority in the state Senate. With Pennsylvania facing a structural deficit that could deplete its surplus by 2026, securing GOP support may require Democrats to compromise on other priorities.

State Senate President Pro Tempore Kim Ward (R., Westmoreland) criticized Democrats' budget priorities, arguing they should have allocated more funding for transportation rather than education. "The bottom line is this: Pennsylvanians — especially those in the southeast — are losing out, not because of divided government, but because Pennsylvania Democrats have chosen to focus their priorities and spending on one area alone," Ward said.

The redirected federal highway funds were originally designated for seven interstate projects. Shapiro insisted these projects, affecting Jefferson, Philadelphia, and York counties, would not face delays. "There is no reason to keep that money on our balance sheet when we can invest it in SEPTA right now and help this community," he said.

Additionally, the five counties served by SEPTA will provide nearly $23 million in new funding for 2025, with Philadelphia contributing the majority share.

Spotlight PA contributed to this report