Illinois Diverts Road Funds to Transit, Angering Downstate Officials

New law redirects $860 million in sales tax revenue from motor fuels away from road projects, with 85% going to Chicago-area transit and 15% to downstate.

Published on Mar. 2, 2026

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A new Illinois law has diverted $860 million in sales tax revenue from the state's Road Fund to public transportation, with 85% of the funds going to the Chicago area and 15% to downstate transit agencies. This has angered many downstate officials, who argue that their road infrastructure needs have been neglected in favor of the Chicago region.

Why it matters

The Road Fund is a crucial source of funding for road projects across Illinois, and the diversion of these funds to transit has raised concerns about the impact on road maintenance and construction, especially in rural and downstate areas. Downstate officials argue that their communities have historically received less funding for roads compared to the Chicago region.

The details

The new law, Senate Bill 2111, was passed in the final hours of the legislative session and will take effect in June 2026. It redirects the sales tax revenue charged on motor fuels from the Road Fund to public transportation operations, with 85% of the $860 million going to the Chicago area and 15% to downstate transit agencies. The law also allows another $200 million from the state's Road Fund to be allocated for mass transit. Downstate officials, such as Senator Sue Rezin, have criticized the move, arguing that it will further delay road projects in their communities.

  • The new law will take effect in June 2026.
  • The Illinois Department of Transportation's multi-year plan, released prior to the new law's passage, includes $7 million for six miles of resurfacing and culvert work on Illinois Highway 96 between 2027 and 2031.

The players

Kevin Six

The mayor of Dallas City, a small town in western Illinois, who has expressed frustration over the state's delays in repaving Illinois Highway 96.

Sue Rezin

A Republican state senator whose district includes parts of the far southwest suburbs, who has criticized the diversion of road funds to transit, arguing that it will directly impact her district's road projects.

Ram Villivalam

A Democratic state senator from Chicago and a main proponent of Senate Bill 2111, who has argued that the bill provides sufficient funding for downstate transit.

Dave Syverson

A Republican state senator who has characterized the diversion of funds as a 'legal loophole' and has expressed concern about how it will impact road projects in central and northern Illinois.

Maria Castaneda

A spokesperson for the Illinois Department of Transportation, who has stated that no changes or reductions to the department's multi-year construction program are planned.

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What they’re saying

“They just paved six miles between our town and the next, but we've been waiting four, five years for more of it to be repaved. They're just dragging their feet.”

— Kevin Six, Mayor of Dallas City (southernillinoisnow.com)

“That's peanuts compared to what they took from us and gave to Chicago. And what really makes me frustrated is, the people still in my district, when they go to gas up in my district, think that that money is going to repair their roads and bridges.”

— Sue Rezin, State Senator (southernillinoisnow.com)

“When we talk to the public, and we sit down and talk to a group of people and have to say, 'They're taking $800 million of major roads and bridges that are supposed to get done out here in central and northern Illinois, that was taken and shifted over to Chicago, so your project's now being pushed back a year or two or three, then they get angry,”

— Dave Syverson, State Senator (southernillinoisnow.com)

What’s next

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The takeaway

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