General Manager Scott Sauer at the press conference following the budget vote.
The SEPTA board voted to proceed with its 2026 fiscal year operating budget — or “doomsday” plan — which includes a 21.5% fare increase and a 45% reduction in service.
Facing a $213 million deficit and no new state aid, officials had no choice but to move forward with the original plan. Andrew Busch, a SEPTA spokesperson, said the agency must balance its budget by July 1, which means slashing nearly half its service, closing 50 bus routes and five Regional Rail lines.
“This isn’t a budget that we take any pride in,” General Manager Scott Sauer said in a press conference following the vote.
SEPTA officials and advocacy groups like “Transit for All PA” have been lobbying in Harrisburg for additional funding ahead of the deadline, but no allocation has been announced so far.
Busch noted that if state lawmakers approve funding later in the 2026 budget cycle — even after the fiscal plan is finalized — the agency could still adjust its plans to avoid proposed cuts.
By January 2026, SEPTA plans to eliminate five Regional Rail lines, including the Paoli-Thorndale line, which is the agency’s most-used line. An additional 9 p.m. curfew will be implemented, all special services will be cut, and 66 stations will close, SEPTA says.
Though the steep budget cuts are now underway, Sauer admitted that he feels optimistic about prospects for additional state funding. He said his conversations with state legislators over the past few months have gained depth, going from general information gathering to more specific questions regarding SEPTA’s operations and financials.
“I feel encouraged,” said Sauer. “I hesitate to put a ratio on it, but I certainly feel better today than maybe I did two or three months ago.”
Proposal Outline
The 2026 fiscal year budget will go into effect on July 1. The proceeding cuts will happen in two phases.
According to SEPTA, the first 20% reduction in service is scheduled for August 24 and will eliminate 50 bus lines.
In September, a 21.5% fare hike will be implemented, a complete hiring freeze will start, and the base fare will rise from $2.50 to $2.90 in September.
Without additional state aid, the remaining 25% service cut will begin on January 1, 2026. The 9
p.m. curfew will also go into effect for the remaining Metro and Regional Rail lines at the same time.
A map of how proposed service cuts will affect commuters’ routes can be found on SEPTA’s website.
What’s next?
Last year, Gov. Josh Shapiro delayed major SEPTA service cuts by redirecting federal highway funds in a one-time stopgap measure.
His current budget proposal includes a plan to create a dedicated funding stream for transit agencies, possibly by reallocating unused state funds or allowing new local taxes. The plan has not yet been approved and remains under consideration in Harrisburg.
State Rep. Morgan Cephas (D-192), who represents part of Philadelphia County, still has hope for the transit funding proposal that has been passed four times in the House, yet stalls in the Senate.
“You have House Democrats prepared to come to the negotiation table to ensure that we collectively get this done,” said Cephas. “Not just for the SEPTA system, but for every single transit system across the Commonwealth of Pennsylvania. All 67 counties have some sort of mass transit in their individual districts that are facing similar draconian cuts.”
SEPTA officials say the budget crisis has been building for years, made worse by the expiration of federal COVID-19 relief funding and increasing operating costs.
Over the past three years, the agency has trimmed costs by cutting consultant contracts, freezing management salaries, and improving internal operations. In 2024, SEPTA increased fares modestly and reinstated parking fees at park-and-ride lots.
Nonetheless, SEPTA is still staring down a $213 million deficit. Without a funding breakthrough, the region could see the most significant dismantling of its transit system in history as the new fiscal year begins.
Cephas said such service cuts will have a profound impact on the more than 53,000 students who utilize mass transit to get to-and-from school, the seniors who rely on SEPTA to access healthcare opportunities, or those commuting throughout the region for work.
“It's an entire ecosystem that will be devastatingly impacted as a result of these cuts that are going to be made after this afternoon’s hearing,” said Cephas.
