Chicago Transit Funding Faces Gas Tax Pressure
Republican bill would suspend Illinois 5% gas sales tax for six months, cutting prices 20 cents per gallon
Illinois Gas Tax Holiday Targets Transit Funds
Illinois drivers could see gas prices drop by 20 cents per gallon under a Republican proposal to suspend the state's gas sales tax for six months. House Bill 5738, introduced by Rep. Ryan Spain, R-Peoria, and Rep. Regan Deering, R-Decatur, would eliminate the 5% sales tax on gasoline from July 1 through December 31. The bill is pending in the Rules Committee and would take effect immediately if passed, officials said.
Context and Background
The proposal comes as Illinois maintains the second-highest gas tax in the country at 48.3 cents per gallon as of July 2025, with another increase expected this summer. Gas prices have climbed to around $4 per gallon statewide, prompting Republicans to seek relief for working families. The measure targets only the sales tax portion, leaving the motor fuel tax in place. Republicans criticized the current system where a sales tax is imposed on top of the motor fuel tax, calling it a tax on a tax during a press conference held in Springfield on Wednesday.
Key Details
House Bill 5738 would suspend the 5% sales tax on gasoline, reducing prices by approximately 20 cents per gallon for the six-month period. The proposal comes after funds from the gas sales tax were redirected from the general revenue fund to support mass transit, primarily in the Chicago area. State Republicans had previously suggested moving these funds to the road fund for infrastructure investments, but that proposal was dropped during veto session. Officials haven't released estimates of how much revenue the state would forgo during the tax holiday.
Timeline and Implementation
The gas sales tax suspension would run from July 1 through December 31 if the bill passes the Rules Committee and receives approval from the full legislature. The measure would take effect immediately upon passage, according to the bill's sponsors. Officials haven't said when the Rules Committee might vote on the proposal or whether it has enough support to advance to a floor vote.
Rider Impact and Information
The proposal highlights ongoing tensions over how gas tax revenue supports transit systems, particularly in the Chicago area. Republicans argue that downstate Illinois has experienced systematic disinvestment in road and bridge infrastructure over recent decades while gas tax funds support Chicago-area mass transit. Transit riders who depend on services funded by the gas sales tax weren't told how the suspension might affect service levels or system funding. Moovit provides real-time updates for Chicago-area transit routes and trip planning across Illinois transit systems.
