SEPTA is deferring an additional five capital projects to allow a one-time transfer of $394 million in state capital funds to cover operating expenses for the next two years.
This state-approved action helps SEPTA avoid service cuts now to maintain safe, reliable service — but it also means this money is not available to support infrastructure rehabilitation, vehicle replacements and other much-needed projects.
Why this Action is Necessary
SEPTA took this action due to the prolonged state budget impasse and no resolution to the ongoing statewide transit funding crisis. Shifting capital dollars to operating support allows SEPTA to close an annual $213 million shortfall through fiscal year 2027.
These five project deferrals come on top of SEPTA postponing or scaling back 44 other projects in its current budget due to rising costs and limited funding. Together, the 49 projects represent a combined $2+ billion worth of deferred work and contribute to a $10+ billion backlog of essential repairs and upgrades needed to keep the system safe and reliable.
Deferred Projects
| Project | Impact | Total Deferred (in millions) |
| Bus Purchase Program | Delays replacement of >250 hybrid buses; extends fleet age and maintenance costs. | $256.7 |
| Frazer Transportation Building | Postpones facility expansion for train crews and maintenance capacity. | $38.7 |
| Bristol Station ADA Upgrades | Defers construction of ADA-accessible platforms on the Trenton Line. | $46.3 |
| Zero Emission Bus (ZEB) Pilot – 40’ and 60’ models | Delays testing of next-generation Zero Emission Buses. | $41 |
| Zero Emission Bus Retrofit Pilot | Defers conversion of diesel-hybrid buses to battery-electric technology. | $11.3 |
Learn more about the 44 capital projects descoped or deferred in the Fiscal Year 2026 budget.