Funding Crisis

A Work in Progress

Pittsburgh Regional Transit, the state's second-largest transit agency, depends heavily on state support through the Public Transportation Trust Fund (PTTF), which was established under Act 44 of 2007. The fund provides reliable, recurring funding for both operating costs and capital projects. It draws revenue from a portion of the state sales and use tax, vehicle sales tax, and Pennsylvania Turnpike Tolls. In 2024, mass transit agencies received about $2.4 billion in state funding.

The cost to do business, however, increases each year and funding for transit agencies has failed to keep up with these rising costs, creating significant deficits at the state's largest transit agencies.

Without a significant increase in operating costs, PRT proposed cutting service by up to 40% and raising fares by nearly 10% just to balance its FY2025 budget.

Although Gov. Josh Shapiro proposed putting a greater percentage of the state's sales and use tax toward transit, the state's General Assembly could not come to a concensus and measures enacting this increase failed.

In a last-minute effort to preserve service, PRT applied for - and PennDOT granted - a waiver that allows the agency to use up to $106.7 million in capital funding to support its operating budget. Although this puts PRT's capital projects even further behind, it allowed the agency to prevent the service cuts and fare increase that would have hurt riders.

PRT will be using these capital funds and drawing down from its reserves to balance its budget through 2027.

However, come 2028, PRT will be in an even greater bind - with no reserves to fall back on - should there not be a solution to fund mass transit.