US City Faces 21.5 Percent Transit Fare Hike as Service Cuts Loom

Philadelphia’s transit system will increase fares by 21.5 percent starting New Year’s Day and may cut services next summer.
The Southeastern Pennsylvania Transportation Authority (SEPTA) announced the news Tuesday in the face of severe financial shortfalls.
Fare changes could bring a $2 single-fare bus or subway ride to $2.90, with SEPTA projecting the fare hike could add $45 million annually to its budget by 2026.
Hikes to ticket prices could come sooner than the new year––under SEPTA’s proposal, in addition to next year’s fare increase, a separate interim fare hike of 7.5 percent will be considered by SEPTA’s board this month and, if passed, would go into effect December 1.
SEPTA, the sixth-largest transit system in the United States, reported an annual budget deficit of $240 million, exacerbated by the phase-out of COVID-19 pandemic-era federal aid and the loss of significant state funding.
“This is the beginning of what we have been saying is the transit death spiral,” SEPTA Chief Operating Officer Scott Sauer said.
The last time SEPTA raised fares was in 2017, with the authority emphasizing that the proposed hikes are critical to its survival​.
This year, the Pennsylvania state Legislature blocked Democratic Governor Josh Shapiro’s proposal to allocate $283 million for public transit, passing instead a one-time $46 million allotment for SEPTA. The state Senate’s decision cost SEPTA nearly $161 million in expected funds.
For rail riders, who currently pay between $3.75 and $6.50 depending on their zone, fares would rise to a range of $5 to $8.75 on January 1.
“This is painful, and it’s going to be painful for our customers,” Sauer said.
SEPTA is also preparing for a series of service reductions to take effect on July 1, 2025, pending approval from its board of directors, which will vote on the measures on December 19 after a public hearing scheduled for December 13.
The proposed cuts would eliminate or consolidate certain bus and trolley routes and reduce the frequency of bus, trolley, subway and regional rail services.
SEPTA estimates that the cuts could save $92 million in the first year, with projected additional savings in subsequent years through possible infrastructure changes.
“These kinds of service cuts will save us money,” Sauer said, “but they come at a huge cost to the people who depend on SEPTA every day.”
The announcement comes amid tense labor negotiations with Transport Workers Union Local 234, which represents about 5,000 SEPTA employees, from bus operators to mechanics and cashiers.
After their one-year contract expired last Friday, union members authorized a strike. As discussions progress, they have yet to enact a work stoppage.
Their main concerns center around the lack of wage increase featured in the transport authority’s original proposal, along with a lack in safety provisions for workers that face daily abuse and harassment.
“We have not reached an agreement, but there has been sufficient movement for us to continue talking and we are not yet calling a strike at this time,” union President Brian Pollitt said last week.
“We are by no means taking the possibility of a strike off the table as we continue to fight for the best possible agreement addressing our safety and economic concerns.”
This article includes reporting from The Associated Press.