SEPTA Gets $394M To Avoid Service Cuts For 2 Years

PHILADELPHIA — Gov. Josh Shapiro's office announced Monday that PennDOT funds have been approved to avoid SEPTA service cuts. SEPTA had requested PennDOT approve releasing nearly $400 million in capital assistance funds to stave off service cuts for two years.

With this funding, SEPTA will preserve existing services and avoid planned service cuts for the next two years, according to Shapiro's office.

SEPTA's General Manager Scott Sauer Friday laid out the embattled transit authority's request for the release of $394 million in capital assistance funds for daily operations.

Sauer last week said services will return around Sept. 14.

Shapiro's office Monday told PennDOT to approve the request. The funds being tapped are not committed to any project, according to Shapiro's office.

The allocation of funds will also prevent "an unreasonable fare increase," according to a letter from PennDOT Secretary Mike Carroll to SEPTA.

And, the money will be used to "prevent a projected one-time unbalanced operating budget," the letter reads.

SEPTA will now be able to continue to provide critical transportation services ahead of and during high-profile events in 2026, including America’s 250th anniversary, the FIFA World Cup, and the MLB All-Star Game.

As a condition of its approval of SEPTA’s request, the Shapiro Administration told SEPTA to continue to address its structural challenges and report to PennDOT every 120 days about the steps taken and progress made to increase efficiencies within the system.

This move comes after a series of events that included lawmakers in Harrisburg failing to agree on a funding plan for SEPTA, a lawsuit that alleges SEPTA manufactured its financial crisis, and a judge's ruling that prevents more service cuts and reverses previously implemented cuts.

Read Carroll's full letter online here.