SEPTA Faces Service Cuts and Fare Hikes Amid Budget Crisis

PHILADELPHIA, Pa. — The Southeastern Pennsylvania Transportation Authority (SEPTA) will announce a plan for significant service cuts and fare increases on Thursday as the agency grapples with a multi-million-dollar budget deficit, officials confirmed on Wednesday.

The announcement is scheduled for 10 a.m. at SEPTA’s Center City headquarters, where officials will outline their proposed measures to address the financial shortfall ahead of the fiscal year ending June 30, 2025. The proposed cuts could impact regional rail, subway, and bus services across the region.

Late last year, SEPTA received a one-time infusion of federal highway funding to help stave off immediate cuts and fare hikes. However, without ongoing financial support, the agency stated it would have been forced to move forward with drastic measures, including a 20% reduction in service, beginning in August, which involves eliminating about 50 bus lines and five regional rail routes.

According to reliable sources, all rail services may conclude by 9 p.m., and 63 stations could potentially close, along with paratransit services. Furthermore, fare increases of up to 21.5% are anticipated as officials attempt to balance their budget amidst the mounting deficit.

Governor Josh Shapiro has publicly expressed his commitment to supporting SEPTA but has urged the Pennsylvania Senate to take action on transit funding. “We have known for some time that SEPTA is in dire straits, as are other mass transit agencies across this commonwealth. 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,” Shapiro stated. He emphasized the urgency for the Senate to act on these funding proposals, which have passed the House three times.

The urgency of the situation has prompted Democratic Senator Nikil Saval to rally support from residents statewide. “We’re going to bring that pressure to bear on Harrisburg and on the PA Senate. And we’re going to ensure we get this done,” he said.

In a statement, SEPTA highlighted its commitment to collaborating with Governor Shapiro and state lawmakers to secure new funding. “Massive service cuts and large fare increases are options of last resort. Unfortunately, if there is not a resolution to the current transit funding crisis in Pennsylvania, SEPTA has few options available to balance its budget,” a spokesperson said.

Details of the proposed budget and anticipated cuts will be opened for public comment following the announcement. Public hearings are scheduled for May 19 and May 20, with the SEPTA Board expected to vote on the new measures during its meeting on June 26, 2025. The proposed budget is intended to take effect at the beginning of the new fiscal year on July 1, 2025.

As these discussions unfold, Shapiro has underscored the importance of ensuring SEPTA is adequately funded, especially with major upcoming events in Pennsylvania, including the celebration of America’s 250th anniversary and the FIFA World Cup. “We’ve got to make sure that SEPTA is there for all those folks who come to visit. We’ve got to make sure that SEPTA can serve our neighbors who rely on it every day,” he remarked.

This is a developing story, and more details will be provided following the press conference.