Gov. Josh Shapiro’s proposed 2025-26 General Fund budget would raise the annual share of the state’s sales tax revenue that goes to transit agencies by 1.75%, generating an additional $292 million annually for mass transit in the first year. The amount would grow to $330 million by the 2029-30 fiscal year, according to the administration.
“A robust, well-funded, transportation system is a core function of government and crucial for our economy,” Mobilify Executive Director Chris Sandvig told the Central Penn Business Journal and Lehigh Valley Business.
“Public transit support is particularly welcome,” he continued. “Every county in the state has some form of transit. Pennsylvanians literally everywhere rely on that ride to see their doctor, get and keep a job, and live life. Making sure they can get to work, school, the doctor, or get together with friends and family is one of the building blocks that makes our commonwealth work for residents and attracts new businesses and families to locate in the Keystone State.”
Currently 4.4% of sales tax revenue goes to public transit systems statewide, divvied up by a formula based on ridership. The agencies include larger urban networks like Pittsburgh Regional Transit and multicounty systems like SEPTA in southeastern Pennsylvania, as well as rural systems that help seniors get to medical appointments and residents in underserved areas get to jobs. Raising the share would not increase the tax rate itself.
The state currently provides these agencies with about $2 billion in direct aid, but many are looking at fare hikes and service cuts without new funding with ridership and utilization still below pre-pandemic levels.
The governor’s proposed state budget also includes $750 million in additional funding for the Pennsylvania Department of Transportation over five years, earmarked for repairs to highways and bridges. The revenue would come from the Motor License Fund.
