How SEPTA is Funded

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

What affects our budget?