I-290 Blue Line Reconstruction CTA Funding

Northern Illinois Transit Authority

The Northern Illinois Transit Authority (NITA) is the new regional agency replacing the Regional Transportation Authority (RTA) to oversee transit across Northeastern Illinois. NITA assumes financial, budgetary, and strategic planning oversight for the region’s three primary operating transit service boards: the Chicago Transit Authority (CTA), Metra, and Pace Suburban Bus. This Includes the CTA Forest Park Branch of the Blue Line.

NITA Makes Key Shifts in How Capital Decisions Are Made Through Centralized Project Planning & Delivery:

Large/Megaprojects: NITA is now responsible for planning major capital initiatives (like multi-billion-dollar corridor rebuilds or extensions). Once planned, NITA assigns the construction phase to the operating Service Boards (CTA, Metra, or Pace) or other regional partners.

The NITA Act includes approximately $180 million annually in new direct capital funding (generated in part by directing interest from state construction accounts). The NITA Board directly programs and evaluates where these discretionary dollars go. Funding from this appropriation could be used for the reconstruction of the Blue Line.

The new 20 member NITA Board will be seated September 29, 2026 The new 20-member NITA. Appointees from the Governor of Illinois, Mayor of Chicago, Cook County Board President, and collar county leaders assume direct oversight.

Transit Facility Improvement Areas (TFIA)

Transit Facility Improvement Area (TFIA) can offer support for the concurrent CTA Blue Line project. TFIAs were created under a new law adopted in 2016 by the Illinois State Legislature (65 ILCS 5). Acting as a Tax Increment Finance (TIF) district specifically for transit, TFIAs work by allocating a set amount of the projected tax revenues on property value increase above the “base” assessed value. While TFIA’s were only permitted for a limited number of transit projects, the CTA Blue Line Forest Park Extension is an eligible project. The TFIA can last up to 35 years and expires when the improvement is paid for and applies to up to one half mile from the project. Funding can be used for rail transit infrastructure, stations, and similar expenses (CMAP, 2019).

The first TFIA in Illinois was approved by the Chicago City Council in November 2016 to provide local match funding for the CTA Red and Purple Line modernization project (CTA, 2021). A TFIA for the CTA Blue Line project can also be considered as a means to provide a portion of needed funding to improve the transit facilities through this corridor.

Chicago Tax Increment Financing (TIF)

In addition to regular tax and fee revenue, a Tax Increment Financing (TIF) district could provide funding for some improvements included in the I-290 reconstruction and CTA Blue Line project. The Chicago Midwest TIF is located in the North Lawndale and East Garfield Park communities, encompassing the I-290 corridor between Western Avenue and Laramie Avenue. It was developed in May 2000 and terminates in 2036. In addition to a variety of community improvements, funds from the TIF are intended to enhance area transit facilities and infrastructure assets. As such, these funds would be eligible to support parts of the I-290 and CTA Blue Line projects.