Yesterday, Gov. Josh Shapiro directed the state Department of Transportation to approve the Southeastern Pennsylvania Transportation Authority’s (SEPTA) request to use up to $394 million in capital assistance transit funding for mass transit general operations. SEPTA had threatened service cuts and fee increases to address a significant ongoing budget deficit that it had asked the commonwealth to fill.  

While not addressing any of the funds taken from roads and bridges through last year’s “flexing” by Governor Shapiro, this one-time transfer will help SEPTA avoid planned service cuts for the next two years. As a condition of its approval, the Shapiro Administration instructed SEPTA to continue to address its structural challenges and report to PennDOT every 120 days with the steps taken and progress made to increase efficiencies within the system. Click here to read more. 

Funding SEPTA and restoring road and bridge funding that Shapiro flexed for mass transit last year has been major obstacles in the 2025-2026 budget negotiations. It continues to be unclear whether this partial step will bring Pennsylvania closer to a budget that is now 71 days late. We all know what happens to a family credit rating when you pass the 60-day late marker, wonder what happens to a state?