SEPTA warns of fare hikes, service cuts without funding increase
SEPTA riders will face major price hikes and service cuts if state funding is not increased to cover a gap in its 2026 budget, officials said.
SEPTA said $30 million in cuts have lowered the budget gap to $213 million. According to a SEPTA source, the fare proposal will be a 21.5% hike across the board, which is what was proposed last fall. Subway, trolley and bus rides on SEPTA currently cost $2.50 each, so a 21.5% increase would raise that to roughly $3.04. The source declined to elaborate on the proposed cuts to service.
The release of the proposed budget comes during critical negotiations for statewide funding in Harrisburg. SEPTA said public hearings will be held on the budget once it's released on Thursday. The hearings will be on May 19 and 20.
The SEPTA Board will hold a vote on a budget proposal at its meeting on June 26, and then the spending plan will go into effect at the start of the new fiscal year on July 1.
"People here in the Philadelphia region deserve the ability to hop on a bus, a train, a trolley, and get to work, get home to their kids, see their kid's game, get to doctor's appointments," Pennsylvania Gov. Josh Shapiro said during an event in Philly on Wednesday night. "We've worked so hard in this commonwealth to invest in infrastructure — we lead the nation in the number of bridges repaired — we now need to be leaders on mass transit."
After threats of "doomsday" service cuts in fiscal year 2025, SEPTA received an infusion of $153 million in federal highway funds that were "flexed" to close the gap in its budget last November.
But that one-time infusion does not address the lingering gap year over year. The expiration of federal COVID-19 relief funds left SEPTA with a gap in its budget — ridership over the past few years has been down since 2020, though it's steadily rebounding.
Shapiro had proposed closing that gap with new state funding on revenues from a tax on skill games, devices similar to slot machines, though legally distinct. Players can reverse losses by completing memory challenges.
Shapiro had estimated the new tax would provide $282 million a year across the commonwealth, with $161 million going to SEPTA. The measure passed the state House but not the Republican-controlled state Senate.
"Look, I'll let SEPTA announce the specifics, but we have known for some time that SEPTA is in dire straits — as are other mass transit agencies across this commonwealth," Shapiro said at an event on Wednesday. "It's why, twice in a row in my budgets, I've proposed historic funding for mass transit — roughly $300 million, about $170 million or so would come to SEPTA in particular."
"We got to get that passed," he added. "The House of Representatives passed it three times. The Senate of Pennsylvania failed to act even once. We got to get my budget proposal through the House again. I know House leaders are committed to doing that next month, and then the Senate needs to act."
Last year, before the temporary funding fix was found, SEPTA warned of a 21.5% fare hike and a 20% cut in service, which did not materialize after the infusion of funding. SEPTA still hiked Regional Rail fares by an average of 7.5%, removed a discount for SEPTA Key and credit card users and reinstated paid parking at Regional Rail stations.
SEPTA is in talks about renewing the Zero Fare pilot program that provides free bus, train, trolley and Regional Rail lines to people near the poverty line. It is also continuing the SEPTA Key advantage program, which helps city employees travel to and from work for free.
Riders weren't fans of the proposed fare increases ahead of Thursday's budget proposal.
"They are just trying to get more money out of us," Marcus Myers, of South Jersey, said.
Some SEPTA riders said they rely on the service every day, especially getting to and from work.
"It's not the best mode of transportation sometimes, but it's what we have to do, and for them to increase and not see any changes, it's disappointing," said Cierra Lewis, who is from Southwest Philly.
