Bill
SB 3635
Increases monthly Grade Crossing Protection Fund transfers starting 2026 by CPI-U, ensuring inflation-linked funding for railroad-highway crossing projects and related safety admin
SB3635 (104th General Assembly) — Motor Fuel-GRADE Crossing
Overview
- Topic: Revenue allocation for grade crossing protection and related transportation funding.
- Purpose: Increase the monthly transfer to the Grade Crossing Protection Fund (GCPF) beginning in fiscal years after July 1, 2026, by applying CPI-U increases, while maintaining a minimum level. Establishes how funds are to be used for grade crossing projects and related administration.
- Effective date: Immediate upon becoming law.
Key Provisions and Changes
1) Grade Crossing Protection Fund (GCPF) funding
- Current baseline: A monthly transfer of $3,500,000 from the Motor Fuel Tax Fund to the GCPF.
- For fiscal years before July 1, 2026: The $3,500,000 per month remains in effect.
- For fiscal years on or after July 1, 2026: The monthly transfer becomes the prior year’s amount multiplied by 1 plus the CPI-U percentage increase for the most recent 12-month period as of July 1 of the relevant fiscal year. The minimum transfer cannot be less than the prior year’s amount.
- Purpose of GCPF funds:
- Not less than $12,000,000 per year for construction or reconstruction of rail-highway grade separation structures.
- At least $5,500,000 per year (starting in FY2022 onward) to the Transportation Regulatory Fund to cover Illinois Commerce Commission (ICC) railroad-safety administration costs, with remaining funds available to the DOT as directed by ICC for projects related to grade crossing safety, surface improvements, and related infrastructure.
- ICC may authorize up to $2,000,000 per year for grade crossing surface improvements.
- Up to $300,000 per year for maintenance of 4-quadrant gate vehicle detection systems at non-high-speed rail grade crossings.
- ICC must prepare annual and 5-year project plans (covering projects paid from GCPF) and submit them to the Governor and legislative leaders by the first Wednesday in April each year.
2) Allocation and administration of remaining funds
- After distributing funds under subsections (a), (a-1), (b), and (c), remaining funds (subject to various statutory priorities) support:
- Department of Revenue administration of the Act.
- DOT supervision of motor fuel tax funds allocated to municipalities, counties, and road districts under the Illinois Highway Code.
- Refunds under Section 13 and related provisions, and agreement-related refunds.
- Vehicle Emissions Inspection Fund transfers (historical and ongoing adjustments) and emissions-related administration costs from EPA and related balance in the Vehicle Inspection Fund (with transfers back to MFTF when balances exceed $2,000,000).
- Court of Claims payments and motor fuel tax refunds owed to member jurisdictions under the International Fuel Tax Agreement.
3) Apportionment and distributions (general framework)
- After all allocations, remaining funds are apportioned to:
- State Construction Account Fund and Road Fund (percentages and historical adjustments).
- Municipal and county distributions, with allocations to municipalities and counties based on population and motor vehicle license fee data, subject to census adjustments and certifications.
- Road districts allocations, with formula-based distribution depending on district mileage and local tax levies for road and bridge purposes (including adjustments for counties with population thresholds and special tax rules, prior to and after 2011).
- Road district and county allotments must consider local tax rates (e.g., minimum extension rates) and are subject to adjustments for counties with property tax extension limitations.
4) Administrative and timing details
- Monthly transfers to the GCPF and other funds are certified by the Department, with monthly orders drawn by the Comptroller and administered by the Treasurer.
- Annual reporting and planning requirements: DOT must produce monthly allotments to municipalities and counties and the Governor and legislative leaders must receive annual and 5-year project plans for GCPF-funded improvements.
Who is Affected
- State agencies: Department of Transportation, Department of Revenue, Illinois Commerce Commission, Environmental Protection Agency (indirectly via prior allocations).
- Grade crossing projects: Railroad-highway grade separation structures, cross-surface improvements, and associated safety measures.
- Municipalities, counties, and road districts: Receipts from motor fuel tax allocations, subject to population, mileage, and levy-based formulas.
- Transportation safety administration: ICC budget and railway safety program funding.
Timeline and Process
- CPI-based adjustment to GCPF funding begins July 1, 2026, with subsequent annual recalculations.
- ICC and DOT must develop and submit annual and 5-year project plans for GCPF-funded activities each year (first Wednesday in April).
- Ongoing monthly transfers and reconciliations of funds to respective funds and priorities.
Notes
- The bill ties GCPF growth to inflation (CPI-U) while guaranteeing a floor equivalent to the prior year, ensuring a baseline level of grade-crossing investments even in low-growth periods.
- It preserves existing allocations for safety administration and crossing improvements, while introducing a structured, inflation-linked funding path for future projects.
Compiled from official sources — confirm details with the bill’s official record.
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