As transit agencies across the commonwealth face devastating funding shortfalls, the suite of bills proposed by the legislators creates additional streams of revenue to prevent service cuts and fare hikes, providing funding to help regional transit agencies meet the needs of their communities.
HARRISBURG, PA − April 29, 2025 −Today State Senator Nikil Saval (D–Philadelphia) and State Senator Lindsey M. Williams (D–Allegheny) announced the Transit for All PA Funding Package, a suite of legislative proposals to help secure full funding for transit agencies across Pennsylvania.
Public transit operates in every county in the commonwealth, serving more than a million people every day. Despite the clear necessity of public transit, Pennsylvania’s General Assembly has failed to increase the funding allocation, even as operating costs have skyrocketed. As a result, PA transit agencies face catastrophic funding cliffs.
“Mobility is crucial to a community’s social and economic wellbeing and to a region’s health and vitality,” said Senator Saval, who serves as Democratic Chair of the Senate’s Urban Affairs and Housing Committee and Chair of the Senate’s Philadelphia Delegation. “Our legislature’s ongoing neglect of public transit has led us to the brink of disaster, and we must explore every available option to bridge current funding gaps. The Transit for All PA Funding Package will create sustainable investments in our transit system, fortifying transit agencies to meet the challenges they face right now while simultaneously building a future in which they are able to fully meet the needs of the people who depend on them.”
“I have heard from hundreds of constituents, community members, and business leaders over the past few weeks about what public transit means to them and how devastating PRT’s proposed cuts would be,” said Senator Williams, who serves on the Pittsburgh Regional Transit Board. “This is about more than getting from Point A to Point B—it is about connecting people and communities, and empowering everyone, regardless of age or ability, to get where they want to go. I am proud to join my colleagues in introducing the Transit for All PA! legislation, which makes a meaningful, stable investment in public transportation statewide, giving our systems—and the communities and people we all serve—a chance to thrive.”
Pennsylvania spends the least per capita on transit of any state in the Northeast with a major transit system. All funding for transit represents only 13% of the Pennsylvania Department of Transportation’s entire budget. The Transit for All PA Funding Package will build on the proposal laid out by Governor Josh Shapiro to increase the allocation of existing sales tax.
Proposals in the package include the following:
- A ride-hailing component, which will establish a 6% excise fee on transportation network companies (TNC) such as Uber and Lyft. All proceeds will go to the Public Transportation Fund. When Act 164 authorized TNCs in 2016, their footprint was far smaller than today, and no excise fee was established outside of a minimal 1.4% fee in Philadelphia. Since then, TNCs have grown exponentially and make heavy use of commonwealth resources while doing considerable business facilitated by Pennsylvania’s transit system.
- A rental vehicle component, which will make nominal increases to the car rental fee. Pennsylvania’s car rental fee was set at $2 per day in 1991 and remains one of the lowest in the country. This legislation would increase the car rental fee to $6.50 per day.
- A leased vehicle component, which will similarly make nominal increases to the car lease tax. Pennsylvania’s 3% car lease fee was set in 1994. This legislation would increase the car lease fee to 5%.
Together, the components of this package are projected to yield hundreds of millions of dollars, enough to fully close the current funding gaps, prevent service cuts and fare hikes, and allow transit agencies to restore and expand services without exhausting reserves.
The proposals in the funding package build on work undertaken by Transit for All PA!, a statewide coalition of transit riders, transit workers, and transit-supportive organizations and businesses dedicated to expanding Pennsylvania’s public transit systems to connect residents to jobs, healthcare, and essential needs and grow the state’s economy.
“Public transit anchors our economic growth, gets us to work and healthcare, and connects us to our communities. It exists as paratransit in Jim Thorpe, buses in State College, the incline in Johnstown, rail in Pittsburgh, and trolleys in Philly—all 67 counties,” said Connor Descheemaker, who serves as Statewide Campaign Manager for Transit for All PA!. “The Transit for All PA! Funding Package invests in access and stability for our communities, rural to urban. Together, we can reverse the cycle of decline and grow a public transportation system that moves us all.”
Transit Forward Philadelphia, a member of Transit for All PA!, is dedicated to advocating for accessible, affordable, and reliable public transportation in the Southeast and across the Commonwealth.
“Having robust and diverse funding for public transportation will allow the SEPTA system and others to maintain service for the most vulnerable populations who can’t get around in personal vehicles or shared ride service,” said Nicole Brunet of Transit Forward Philadelphia. “This legislation will allow communities to build for the future and invigorate a transit system that supports everyone.”
The full co-sponsorship memo for the ride-hailing component is available here.
The full co-sponsorship memo for the rental and leased vehicle components is available here.
A companion package is being proposed in the Pennsylvania State House by State Representative Aerion Abney (D–Allegheny) and State Representative Jessica Benham (D–Allegheny).
###