October 24, 2025
Thom Carroll/for PhillyVoice
SEPTA's Board formally approved the transfer of $394 million in capital funds to sustain its operations. The move means SEPTa will postpone the purchase of 247 new buses and several other capital projects.
SEPTA is postponing the purchase of new buses, upgrades to a Regional Rail station and the expansion of a railroad maintenance facility by transferring $394 million in capital funds to its operating budget.
On Thursday, the SEPTA board formally approved the transfer and amendments to its capital project plans for fiscal year 2026. Officials said the postponed projects will not impact rider safety and will help close the annual $213 million budget shortfall for the next two years, but a long-term funding solution is still necessary.
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"Using capital funds for operations keeps us moving today, but it pushes those critical investments further down the road," SEPTA General Manager Scott Sauer said in a statement. "We stand ready to continue working with leaders in Harrisburg to develop a long-term solution that addresses both our operating needs and the capital investment so critical to our future."
The five projects that were delayed include:
• The replacement of 247 hybrid diesel-electric buses by three years ($256.7 million)
• The final phase of the Frazer railroad facility expansion which will add maintenance capacity ($38.7 million)
• Upgrades that will bring Bristol Station's platforms on the Trenton Line in compliance with the American with Disabilities Act. ($46.3 million)
• The purchase of hydrogen and electric-powered buses for the transit authority's zero-emission test program ($41 million)
• Conversion of diesel-hybrid buses to battery-electric technology ($11.3 million)
"The projects that have been deferred push back long-needed improvements to our stations, fleets and infrastructure," SEPTA spokesperson Andrew Busch said in an emailed statement. "We needed to select projects that were not already underway and also would not impact customer safety. ... It would be extremely difficult to find additional projects to cut."
Another 44 infrastructure projects already were scaled back or suspended in an effort to save around $1.8 billion over the next 12 years, SEPTA said. Upgrades to the Market-Frankford Line and trolley cars will not be impacted.
SEPTA also has less than a week to complete its inspection of its aging Silverliner IV cars prompted by an emergency order from the Federal Transit Administration that claimed the cars pose an "immediate and unacceptable safety risk."
Busch said SEPTA is close to completing inspections on 90 of the 225 cars and will continue to work closely with the FTA as the deadline approaches.
SEPTA's funding issues were a key component of Pennsylvania's stalled budget negotiations. The state legislature is in its fourth month without an approved budget. Last month, PennDOT approved SEPTA's request to transfer $394 million to its operating budget to reverse drastic service cuts. The request was made after a judge ordered SEPTA to restore regular service.
