PHILADELPHIA (June 25, 2026) – SEPTA’s Board today approved a total budget of $2.7 billion for Fiscal Year 2027 – a $1.84 billion Operating Budget and $920.7 million Capital Budget. The spending plan represents an increase of just 1.9% over the current year, and includes investments in new buses, more full-length fare gates and other enhancements for customers.
There will be no changes in service levels or fare increases. The operating budget reflects the second and final year of the $394 million capital funds transfer approved by PennDOT to support operations. Without a long-term funding solution at the state-level in the coming year, SEPTA’s future remains uncertain.
“SEPTA continues to demonstrate meaningful progress in safety, reliability, cleanliness, ridership recovery and fiscal discipline,” said SEPTA Board Chair Kenneth E. Lawrence Jr. “The budget we approved today reflects SEPTA’s ability to be good stewards of taxpayer dollars and worthy of stable, dedicated funding.”
Thanks to ongoing austerity measures, SEPTA has realized close to $30 million in annual savings, in addition to increased income from advertising, parking and investments. These efforts have reduced SEPTA’s structural budget deficit from $213 million to $192 million.
The budget also includes the required local match on state funding from the City of Philadelphia and Bucks, Chester, Delaware and Montgomery Counties. Additionally, the City’s Fiscal Year 2027 budget passed earlier this month maintains funding for two important initiatives – the City’s Zero Fare program for low-income Philadelphians and continued participation in SEPTA Key Advantage.
“We are grateful to Mayor Parker and Philadelphia City Council for strengthening these unique partnerships,” said SEPTA General Manager Scott A. Sauer. “The progress we have made over the past year demonstrates how SEPTA is delivering for its riders and the communities we serve, and this budget creates the foundation for SEPTA’s future.”
The 12-year Capital Program dedicates funds to advance critical infrastructure and vehicle replacement investments, including Trolley Modernization, the purchase of new 
cars and station accessibility projects. SEPTA is also able to restart its bus fleet replacement in Fiscal Year 2027, thanks to the lower structural deficit.
However, this Capital Program relies heavily on debt to fund critical railcar replacements, with a plan to borrow $4.3 billion over 12 years. The debt-heavy program does not have the capacity to fully fund the replacement of the 
cars, which are approaching 50 years old.
Meanwhile, SEPTA’s state of good repair backlog has doubled in the past decade to $10.2 billion, undermining system reliability and driving up future repair costs. SEPTA’s Capital Budget remains between one-third to one-half of the capital funding provided to peer transit agencies.
Five-Year Strategic Plan
SEPTA’s Board also approved the Authority’s Five-Year Strategic Plan – a roadmap for how SEPTA moves from back-to-basics to best-in-class — defining the goals, actions and performance indicators that will guide SEPTA’s work and investments over the next five years.
The plan builds on real progress. Ridership has grown for four consecutive years. Serious crime has fallen to its lowest level in a decade. Missed bus trips have dropped by nearly half. The Authority is also in the midst of the largest fleet modernization in a generation. SEPTA’s Five-Year Strategic Plan sets a clear direction for what comes next.
View SEPTA’s Five-Year Strategic Plan.
View SEPTA’s Fiscal Year 2027 Operating and Capital Budgets.
FOTP Contract
In addition, the Board approved a new contract between SEPTA and the Fraternal Order of Transit Police (FOTP) Lodge #109 for Transit Police officers.
FOTP members last week voted to ratify the three-year agreement. The previous contract expired on March 31, 2026.
SEPTA negotiated in good faith to reach an agreement that is fair to its current officers and will continue to make a career with the SEPTA Transit Police attractive to new recruits. Fifteen cadets graduated earlier this month with another 18 recruits expected to begin police academy in July.
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