SEPTA is a public authority, not a private company.
We were created by the Pennsylvania General Assembly in 1963 to rescue and run the region’s transit system after private operators could no longer sustain it on their own. We do not operate to make a profit. We exist to keep southeastern Pennsylvania moving.
Our fiscal year 2027 budget is roughly $2.7 billion, about $1.84 billion for day-to-day operations and $920 million for capital projects like new vehicles, station upgrades and infrastructure improvements.
Funding Sources for SEPTA’s Operations
State funding
The largest share of our budget comes from the Public Transportation Trust Fund (PTTF), which draws from state sales tax revenue, vehicle registration fees, and other motorist charges. PennDOT distributes these dollars to all 57 transit agencies across the state using a calculation based on total passengers and vehicle miles traveled.
Federal funding
Federal formula grants support a portion of our day-to-day operations. The federal government plays a much bigger role on the capital side in funding infrastructure projects, new vehicles and station upgrades.
Self-generated revenue
This includes revenue from rider fares, advertising revenue, leasing office and retail space across our system, station naming rights, property leases and parking fees.
Local and county contributions
Contributions from Philadelphia County make up the bulk of these dollars, while Bucks, Chester, Delaware and Montgomery counties contribute about $27 million combined.
Where each dollar SEPTA receives goes
|
71 cents |
22 cents |
2 cents |
2 cents |
2 cents |
1 cent |
|
Wages and benefits. |
Materials and services. |
Electricity to power our rail and trolley network. |
Fuel for buses and support vehicles. |
Insurance and claims. |
Everything else. |
What affects our budget?
Factors influencing revenue
- Gradual (paid) ridership gains
- No fare increases
- Parking citation cost increase
- Increased advertising income
- Incrementally lower interest rates for investment income
Factors influencing operations
- Formula driven federal, state and local operating assistance
- One-time capital transfer to fully fund operations through the end of FY2027
- Of proposed FY2027 expenses, 23% covered by revenues, 77% covered by subsidies
Factors influencing expenses
- Contractual wage increases
- Budgeted headcount
- Strategic investments, including:
- Austerity/transformation program savings
- SCOPE program
Funding Sources for SEPTA’s Capital Projects
SEPTA’s FY 2027 Capital Budget totals $920.7 M and $16.5 billion over 12 years with over 140 projects. The FY 2027 Capital Budget is supported by Federal ($392.5 M), State ($508.1 M), and Local ($20.1 M) sources.
Largest Capital Investments Over 12 Years
$3.7 billion
$2.2 billion
$3.7 billion
Bus Purchases & New Bus Network
$1.5 billion
Mainline-Schuylkill (S2S) Infrastructure
$416.8 million
Financial Obligations
$3 billion
Federal funding primarily comes from the Federal Transit Administration (FTA) formula grant programs under the U.S. Department of Transportation. SEPTA also secures competitive federal funding awards and regional flex funds, collectively categorized as “Federal Other” funding.
Below are SEPTA capital project examples and how they are supported through Federal funding:
Fleet Replacement
FTA Rail Vehicle Replacement (Competitive)
Vehicle Overhaul Program
Section 5307 and 5337 (FTA Formula)
Trolley Modernization Vehicles and Infrastructure
FTA Formula & DOT BUILD Program (Competitive)
Bus Purchase Program
Formula, FHWA Flex, and Low or No Emissions Program (Competitive)
Chinatown, Erie, Fairmount, Snyder and 11th St Stations
FTA All Stations Accessibility Program (ASAP) (Competitive)
State Funding is provided through Title 74, Section 1514 (Asset Improvement Program) of the Pennsylvania Consolidated Statutes, and is administered and distributed by PennDOT.
Local Funding contributions are provided by the City of Philadelphia and Bucks, Chester, Delaware and Montgomery Counties to match state and federal funding.
Future Borrowing
To address urgent capital needs, SEPTA must borrow approximately $4.3 billion over 12 years. By FY 2036, long-term debt will consume over 20% of SEPTA’s capital resources, inhibiting SEPTA’s ability to fully fund critical station upgrades and the replacement of aging 
and 
rail cars.
Bridging SEPTA’s Capital Budget Gap
Pursue permanent, sustainable funding solution
With stable, dedicated funding, SEPTA can transform into a modern, best-in-class transit system that supports the regional and state economy and keeps Southeastern Pennsylvania moving.
Avoid future capital-to-operating transfers
Capital-to-operating transfers are counterproductive long-term. This budget avoids them to safeguard funding for critical vehicle and infrastructure needs, as future transfers will exacerbate the debt needed for upcoming projects.