PHILADELPHIA (April 9, 2026) – SEPTA is proposing 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.
This proposal does not include fare increases or service cuts. However, without a long-term funding solution, SEPTA’s future remains uncertain. The proposed budget reflects the second and final year of the $394 million capital funds transfer approved by PennDOT to support operations.
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.
“By using the resources we receive even more efficiently, we continue to do more with less and reinforce our commitment to being good stewards of taxpayer dollars,” said SEPTA General Manager Scott A. Sauer. “With stable, dedicated funding, SEPTA can transform into a modern, best-in-class transit system that strengthens communities, supports the economy, and keeps southeastern Pennsylvania moving.”
SEPTA has demonstrated meaningful progress in safety, reliability, cleanliness, ridership recovery, and fiscal discipline — all during one of the most challenging years in its history. At the same time, the Authority is making improvements to the system that directly benefit riders, including New Bus Network.
The $920.7 million proposed Capital Budget is part of a $16.3 billion 12-year Capital Program. It dedicates $7.7 billion to fleet replacement for trolley cars, L [Market-Frankford Line] cars, and Regional Rail cars. 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 B [Broad Street Line] 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.
There will be four public hearings about the Operating Budget:
- May 11 at 11 am and 7 pm
- May 12 at 10 am and 4 pm
There will be two public hearings about the Capital Budget:
- May 13 at 11 am and 7 pm
The hearings will take place in-person at SEPTA Headquarters and virtually via WebEx. The SEPTA Board will consider the proposals at its June meeting. If approved, they will go into effect with the start of Fiscal Year 2027 on July 1.
View SEPTA’s proposed Fiscal Year 2027 Operating and Capital Budgets.
For more information about SEPTA, follow @SEPTA, or download the official SEPTA app.
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