Gov. Shapiro tosses Philadelphia transit a lifeline

With 320,000 daily transit riders facing hefty fare increases and service cuts and no action from the state Senate, Gov. Josh Shapiro has shifted $153.4 million in road and bridge funding to the Southeastern Pennsylvania Transportation Authority.

At a news conference in suburban Philadelphia Friday, Shapiro said he used the process called “flexing” funds to “create a bridge” for SEPTA while his administration continues to work with Senate Republicans to pass a long-term transit bill. Transit agencies across the state are struggling financially as they slowly recover from pandemic ridership losses and the end of emergency federal subsidies, but SEPTA is the only one with an intermediate crisis.

The state House passed a bill three times in recent months that would have provided additional funding for transit, but the Senate never voted on the bill before finishing work for the year, leaving what Shapiro called “unfinished business for all of us.”

But the governor said SEPTA couldn’t wait any longer. The agency had announced a fare increase for December and an additional increase with serious service cuts before summer if it didn’t get more money because it has spent all of its emergency subsidy.

“I’m here to tell you we can’t let that happen,” Shapiro said. “I’ve made it clear I will not let SEPTA fail. [This money] is going to ensure the good people of this area can get where they need to go.”

Shapiro and SEPTA officials have stressed that the five-county agency provides more than rides for millions of commuters every year. It has about 9,500 employees and spends billions every year on supplies and capital projects, much of it in Pennsylvania.

In his budget request for 2024-25, Shapiro had asked for the first state increase in transit funds in more than 10 years, $282.2 million for five years. With the state budget already late and no deal looming, Shapiro and legislative leaders agreed to a one-time increase of $80.5 million with a promise to return after summer recess and pass a long-term bill.

But that didn’t happen because Senate Republicans said they had a hard time convincing members from rural areas to support transit money when about 87% of it goes to Philadelphia and Pittsburgh. They want additional money to help smaller communities improve their roads and bridges.

For now, with cooperation from regional planning agencies, the state is shifting money from seven projects across the state to SEPTA. Those projects are not ready for construction yet, but Shapiro and Transportation Secretary Mike Carroll said they still should be finished on time.

“There is no reason to keep that money on our balance sheet for years if we can use it now,” Shapiro said.

Additional funds will be contributed to SEPTA from the counties that use the system: Philadelphia, Chester, Bucks, Delaware and Montgomery.

This isn’t the first time the state has flexed money from other transportation projects to support transit. In 2008, then-Gov. Ed Randell shifted millions to public transit when the Legislature couldn’t reach a deal, and that resulted in long-term action the next year.

Shapiro’s move followed strong lobbying efforts by transit advocacy groups across the state, including Pittsburghers for Public Transit. PPT Executive Director Laura Wiens said the groups sent more than 3,500 emails and made “countless” phone calls encouraging the governor to flex the money for SEPTA.

“We are thrilled,” she said. “We know if SEPTA falls off the fiscal cliff … that has ramifications across the state.”

Wiens said she would like to see Pennsylvania use that ability to shift more money to transit on a regular basis like other states do. But she made it clear a long-term bill still is needed.

“The time is really now for a permanent solution,” she said.

Carroll said state leaders will make long-term funding a top priority in next year’s budget.
“I am hopeful that seeing the need will lead to a transportation bill on [the governor’s] desk next June “ he said.

Pittsburgh Regional Transit wasn’t available for comment on the special funding for SEPTA. CEO Katharine Eagan Kelleman has said the agency will be facing the same problems in 2026 without a change in funding, a deficit of $120 million and “wholesale abandonment of services” in future years.