Pennsylvania Approves Funding to Restore Philadelphia Transit Services

The administration of Pennsylvania Governor Josh Shapiro has authorized the use of hundreds of millions of dollars in capital project funds for the Southeastern Pennsylvania Transportation Authority (SEPTA). This decision aims to restore bus, trolley, and rail services that were cut to address significant financial deficits.

On October 2, 2023, the approval followed a request from SEPTA, prompted by a judicial order mandating the reversal of service cuts made just two weeks prior. In a letter addressed to SEPTA, Mike Carroll, the Secretary of Transportation, noted that the request was “both predictable and rueful.” The letter highlighted the challenges faced by the Shapiro administration and Democratic lawmakers in securing additional funding from Republican legislators to alleviate transit agency deficits across the state.

The situation in Philadelphia, the sixth most populous city in the United States, mirrors challenges faced by major transit agencies nationwide. Rising operational costs and decreased ridership, exacerbated by the COVID-19 pandemic, have left many transit systems struggling.

SEPTA had initially described the service cuts as the most severe undertaken by a major U.S. transit agency, citing a deficit exceeding $200 million. However, testimony during court proceedings characterized these cuts as unnecessary and disproportionately affecting low-income and minority communities. With the newly allocated $394 million in state capital funds, SEPTA hopes to reinstate services and mitigate further planned reductions over the next two years.

Despite this funding approval, SEPTA will still implement a fare increase of 21.5%, projected to generate approximately $31 million annually.

In a broader context, other transit agencies in the state, such as Pittsburgh Regional Transit, are also grappling with financial challenges. The agency is contemplating a drastic 35% reduction in services to address its own estimated $100 million deficit for the year. This could entail the elimination of 45 bus routes and reductions to 54 others, as well as cutting one of three light rail lines.

SEPTA has warned that, without intervention, it might need to reduce half its services by January 1, 2024. The financial strain on transit agencies underscores the urgent need for sustainable funding solutions to preserve essential public transportation services.