Background/Analysis/Issues: 

SEPTA has requested that DVRPC amend the FFY2025 TIP for Pennsylvania by deferring projects and realigning SEPTA’s Program Funding to facilitate the transfer of capital funding to support operations. Specific amendments and modifications to SEPTA  projects and programs are detailed below. 

To enable this transfer, SEPTA will defer five capital projects, under the following  Programs: 

• MPMS #77183: Transit and Regional Rail Station Program - $46.3 M deferred for the Bristol Station on the Trenton Line project. 

• MPMS #102569: Maintenance and Transportation Facilities - $38.7 M deferred  for the Frazer Transportation Building project. 

• MPMS #90512: SEPTA Bus Purchase Program - $309 M total deferred from this  program.  

o $256.7 M deferred to delay the next round of Bus Purchases by three years; 

o $41 M deferred for the 40' and 60' Zero Emission Bus Pilot; and  o $11.3 M deferred for the Zero Emission Bus Retrofit Pilot. 

When the SEPTA Board adopted the FY 2026 Capital and Operating Budgets in June of  2025, the Operating Budget was $213 M short of the amount needed to maintain  service levels and avoid fare increases. As a result, SEPTA planned to implement a  45% service reduction phased in throughout FY 2026 along with a 21.5% fare increase.  Without additional State operating subsidies, SEPTA implemented a 20% reduction in  service on August 24, along with the 21.5% fare increase on September 1. 

To restore full service, SEPTA requested PennDOT’s approval to utilize State capital  assistance funds to support operations, and on September 8, 2025, Pennsylvania 

Secretary of Transportation Michael Carroll approved the emergency use of up to $394  M in FY 2026 State capital assistance for operating costs. This emergency measure  allowed SEPTA to cancel the service cuts and sustain operations for approximately two  years. However, transferring $394 M of capital funds to support operating costs requires  the capital project offsets detailed in this memorandum. 

Due to the mix of Federal ($275.2 M), State ($115 M), and Local ($3.8 M) funds  programmed for the deferred projects, SEPTA will use the same amounts and sources  to support operating costs. SEPTA will coordinate with the Federal Transit  Administration (FTA) and PennDOT to reclassify these funds under a Preventive  Maintenance grant and Operating Subsidy grant, respectively, allowing capital dollars to  be used for labor and maintenance costs typically covered by the Operating Budget. The capital projects deferred provide the $394 M total needed to sustain operations for  the next two years; however, the funds allocated to those projects include dollars  programmed prior to FFY 2026 through FFY 2031. Therefore, additional funding  reallocations are necessary to provide the operating dollars needed in FY 2026 and FY  2027. 

These capital project deferrals are in addition to the 44 projects that had to be  postponed or scaled back when SEPTA adopted their 12-Year Capital Program in June of 2025. SEPTA currently has an approximately $10.2 billion backlog of essential  repairs and upgrades needed to keep the system safe and reliable. Redirecting capital  funds to cover operating expenses helps SEPTA maintain service today, but it also  means postponing critical long-term investments. 

The proposed SEPTA program changes are as follows: 

MPMS #102571 – Communications, Signals, & Technology Improvements Reallocating $26.821 M Section 5307 and $30 M State 1514 to MPMS #60317 – Preventive Maintenance. 

MPMS #60317 – Preventive Maintenance 

Adding $275.2 M of unobligated Section 5337 Federal prior year funding for Preventive  Maintenance, reallocating $115 M State 1514 funding, showing $68.8 M in-kind local  operating funding as a match on federal funding, and including the $3.8 M of local  funding from the reallocations of State 1514 funding. 

MPMS #77183 – Transit & Regional Rail Station Program 

Reallocating $15 M State 1514 funding to MPMS #60317 – Preventive Maintenance and removing $17.68 M of programmed discretionary funds. 

MPMS #90512 – Bus Purchase Program 

Reallocating $19 M State 1514 funding to MPMS #60317 – Preventive Maintenance. 

MPMS #60275 – Debt Service 

Adding $1.757 M of unobligated Section 5307 Federal prior year funding to cover  upcoming debt service payments for FFY26.

MPMS #115472 – Projects of Significance  

Reallocating $12.727 M State 1514 funding to MPMS #60317 - Preventive  Maintenance, adding $20 M Section 5307, $11.68 M of unobligated Section 5337 prior  year funding, $25 M of unobligated FFY23 RAISE prior year funding, and removing  $96.079 M of programmed discretionary funds. 

MPMS #60582 – Vehicle Overhaul Program 

Reallocating $4.8 M Section 5307 funding for obligation purposes. 

MPMS #121367 – Safe, Clean, and Secure Program 

Reallocating $7.272 M State 1514 funding to MPMS #60317 – Preventive Maintenance. 

MPMS #102567 – Roof Program 

Reallocating $6.821 M Section 5307 funding for obligation purposes. 

MPMS #102565 – Track Improvement Program 

Reallocating $2 M State 1514 funding to MPMS #60317 – Preventive Maintenance.  

MPMS #95402 – Bridge Program 

Reallocating $14 M State 1514 funding to MPMS #60317 – Preventive Maintenance. 

MPMS #60651 – Substations and Power Improvements 

Reallocating $3 M State 1514 funding to MPMS #60317 – Preventive Maintenance. 

MPMS #102569 – Maintenance and Transportation Facilities 

Reallocating $12 M State 1514 funding to MPMS #60317 – Preventive Maintenance,  reallocating $4.8 M Section 5307 funding to MPMS #60582 – Vehicle Overhaul  Program, and removing $36.241 M of programmed discretionary funds. 

Financial Constraint: 

Financial constraint will be maintained by adjusting other existing TIP projects whose  schedules or costs have changed. The attached fiscal constraint chart provided by  PennDOT shows all of the adjustments taking place, in accordance with the TIP  Memorandum of Understanding. All projects listed contribute to fiscal constraint. 

Conformity Finding: 

The TIP's current conformity finding will not be impacted by this amendment as these programs are exempt from air quality analysis. 

Cost and Source of Funds: 

$394 million 

The DVRPC Board approves TIP Action PA25-072, SEPTA’s request that DVRPC  amend the FFY2025 TIP for Pennsylvania by deferring projects and realigning SEPTA’s  Program Funding to facilitate the transfer of capital funding to support operations.