SEATA's operation funding approved by Shapiro for the next two years through capital project funds

In a significant development for the city of Philadelphia and its transit system, the Southeastern Pennsylvania Transportation Authority (SEPTA) has secured funding to operate for the next two years. This announcement comes after a series of events that have shaped the future of public transportation in the region.

The funding, approved by Pennsylvania Department of Transportation (PennDOT) Secretary Mike Carroll, allows SEPTA to use capital project money for daily operations. This decision was made following a Philadelphia judge's order for SEPTA to reverse all service cuts, and after the expiration of COVID-19 relief funds left the transit authority with a $213 million deficit.

The new funding will help SEPTA navigate through July 2027, reversing the "doomsday" service cuts and allowing the transit authority to restore service fully on Sunday. With this, SEPTA will also raise fares from $2.50 to $2.90, marking a 21.5% increase.

The funding will also support SEPTA's new bus network and enable the transit authority to participate in events in Philadelphia celebrating the 250th anniversary of the United States.

The approval of the funding plan was not without controversy. Both the House and the state Senate passed separate mass transit funding bills, with Republicans opposing the House bill and Democrats rejecting the Senate bill. In response, Pennsylvania Governor Josh Shapiro proposed establishing a dedicated funding mechanism and exploring new revenue sources to create long-term financing solutions for SEPTA.

In a letter approving the plan, Carroll claimed that the Republican-backed legislation failed to meet the needs of mass transit providers and wasn't a long-term funding solution. Despite this, neither party's plans could pass both chambers in Harrisburg.

Last year, Shapiro redirected federal highway money to temporarily help cover SEPTA's deficit. His current budget proposal has $252 million earmarked for mass transit in the commonwealth.

SEPTA, however, intends to appeal the judge's order, citing the need for a comprehensive and sustainable funding solution for the transit authority. Democrats and Republicans in Pennsylvania have yet to find common ground on this issue.

In the meantime, the funding approved by PennDOT will provide a much-needed respite for SEPTA, enabling it to address its structural challenges and report progress every 120 days, as instructed.