SEPTA proposes service cuts, increasing fares by nearly 30% in 2025 amid budget crisis
SEPTA is taking drastic steps in an effort to offset its ongoing budget deficit.
Tuesday morning, SEPTA officials laid out their proposal for a "historically high fare increase" in 2025 that would affect all payment methods, along with "major service cuts."
According to SEPTA, the average fare increase across all transportation modes would go up by nearly 30% — a combination of fare changes proposed in September and additional price increases being put forth in November.
Earlier this fall, SEPTA proposed eliminating rider discounts, which would account for a 7.5% fare increase effective Dec. 1. Combined with the additional 21.5% fare increased proposed on Nov. 12, the cost increase for SEPTA riders comes out to 29% in the new year. Both rate hikes would need to be approved by the SEPTA Board.
For bus and METRO riders who use SEPTA Key, Quick Trip and cash payments, fares would increase to $2.90 effective Jan. 1, 2025.
For Regional Rail SEPTA Key riders, fares would increase to the following prices in each zone, also effective Jan. 1:
- Zone 1: $5
- Zone 2: $6.50
- Zone 3: $7.75
- Zone 4: $8.75
SEPTA also said budget pitfalls would force a 20% reduction in service across the board. Public hearings about the proposed fair adjustments are scheduled for Friday, Dec. 13, at 10 a.m. and 4 p.m. People interested in speaking in-person or virtually at either the morning or afternoon session will need to register by the start time on the day of the hearings.
At Tuesday's press conference, SEPTA leaders said the price increases and service reductions are necessary, but acknowledged the negative impact both actions could have on the future of public transit.
"With major service cuts and fare increases, this is the beginning of what we've been saying is the 'transit death spiral,'" SEPTA Chief Operating Officer Scott Sauer said. "Service cuts and fare increases resulting from fewer riders, lead to more service cuts and more fare increases, resulting in fewer riders. Until ultimately public transit is no longer relevant."
The agency has said a lack of "meaningful progress" on funding support in Harrisburg has forced the fare hike as SEPTA stares down a $240 million budget shortfall, one of the main sticking points impacting current negotiations between SEPTA and Transport Workers Union Local 234.
The union, which is currently working without a contract, authorized a strike earlier this month. TWU Local 234 representatives said members are calling for higher pay and security improvements.
Following the strike authorization, a SEPTA spokesperson said the agency is working with Pennsylvania Gov. Josh Shapiro and legislative leaders on "sustainable, long-term funding, but at this point, there is no solution in sight. This stark reality impacts these negotiations, as well as SEPTA's ability to provide critical transportation services throughout the Philadelphia region."
The union opted not to strike after reaching their initial Nov. 8 deadline, and negotiations between SEPTA and TWU Local 234 are continuing.
Steps taken to address SEPTA budget issues
As part of the state budget passed in July, SEPTA received a one-time payment of $46 million, though city and state leaders have still called for lawmakers in Harrisburg to pass Shapiro's proposed plan that would generate an additional $282 million per year for all transit systems, including $161 million for SEPTA.
"I consider funding SEPTA and mass transit to be a significant need," Shapiro said in September, calling funding SEPTA a priority for him and his administration.
"What I'm not interested in is nothing happening," he said. "SEPTA needs help, and our mass transit agencies need help across the state.
SEPTA reinstated parking fees at all of its owned surface lots and garages in an effort to generate revenue. After waiving parking fees for more than four years to attract customers, daily parking rates for SEPTA's surface lots went back up to $2. Parking at the Frankford Transportation Center, Norristown and Lansdale garages is now $4.
The agency also plans to do away with fare discounts, which SEPTA said would add an additional $14.4 million in revenue each year.
In September, SEPTA said under the proposed hike SEPTA Key cardholders and riders who pay with credit and debit cards would no longer be charged $2 for a ride and instead pay the full $2.50 fare.
A SEPTA spokesperson said discounts will also be eliminated on Regional Rail. For many trips, prices could increase by about $1 per ride, depending on which zones the ride passes through.
If approved by the SEPTA Board on Nov. 21, the proposed fare adjustments would go into effect on Dec. 1.
Riders react to proposed fare hike
People who use SEPTA expressed concern Tuesday about the proposal.
"That would be terrible 'cause I catch the bus just about every day for work. Work five days a week. And just adding that up over time that's really gonna … have to cut back on other things such as groceries," Angel from Manayunk said.
Angel added that "kind of being in the dark about it really scares me."
Ashley McFarland from South Philadelphia recently started taking SEPTA again.
"If they cut the bus to the art museum or they cut the subways down, you're gonna be walking a longer distance," McFarland said. "Doesn't sound like a lot of fun considering winter's coming."