Illinois Bill Would Eliminate Parking Minimums, Streamline Transit As Budget Crunch Looms

State lawmakers unveiled a bill Wednesday that would reshape Illinois' public transit systems and slash parking requirements to zero for developments near transit hubs.

The People Over Parking Act was introduced by state Rep. Eva-Dina Delgado of Chicago. It would replace the Regional Transportation Authority, which oversees the Chicago Transit Authority, Metra and Pace, with a new entity called the Northern Illinois Transit Authority, or NITA.

The bill would restrict any unit of local government from imposing or enforcing “any minimum automobile parking requirements on a development project if the project is located within one-half mile of a public transportation hub.” The new text is an amendment to a previously filed bike safety bill and contains several of the same elements of a reform bill filed last year, the Metropolitan Mobility Authority Act.

The removal of parking minimums near significant stretches of the city could lower costs for developers substantially.

Property owners report that the cost of creating a parking space can range from $5K to $10K for surface lots and $25K to $50K per space in structured parking garages, according to Birchwood Law.

The bill also includes provisions enabling NITA to be involved in real estate development near transit centers. It would allow the new agency to “enter into contracts and agreements with governmental, not-for-profit and for-profit entities for development” of transit-oriented projects within a quarter mile of public transit.

The legislation comes as the state legislature is still scrambling to find ways to fund the state's transit system before the May 31 end-of-session deadline.  

The state is staring down a $770M fiscal cliff facing Chicago-area transit next year after pandemic relief funding runs out. Transit agencies have warned that they will have to drastically cut service if legislators don’t find funding to plug the budget gap. More than 50 L stations could close or see service slashed, and more than half of the CTA’s bus routes could be eliminated entirely. 

“It is clear from initial review however, that this bill does not contain any new funding,” RTA spokesperson Tina Fassett Smith told the Chicago Tribune in a statement. “Reforms alone cannot close our fiscal cliff, and riders will need to brace for service cuts in 2026 if the state does not provide funding certainty by May 31st.”