The feds delivered the CTA a blow at the end of last year when the Federal Transit Administration threatened to cut funding if the agency didn't improve safety.

The big picture: Safety is just one of the major issues and projects CTA and other Chicago-area public transit agencies are facing in 2026.

The latest: Just this week, CTA closed the State and Lake station for three years to build a modernized terminal.

Here are other transit issues we're watching:

FTA funding threats

A day after the CTA implemented a safety plan last month that deployed more police and security guards, the FTA basically said: Not good enough.

Catch up quick: The plan was in response to an earlier letter from the FTA saying the CTA must implement a safety plan by Dec. 19, a few weeks after a horrific attack on the Blue Line caught President Trump's attention.

What's at stake: Potentially $50 million, according to the FTA.

What's next: The CTA has 90 days to comply with the request.

Red Line Extension

Last October, the U.S. Department of Transportation (DOT) announced the long-awaited project to bring CTA access to Chicago's South Side was under administrative review.

• White House spokesperson Karoline Leavitt said the review was prompted by CTA awarding construction projects based on race.

What they're saying: The CTA was notified of DOT's initial findings last month.

• "The entities also were notified of steps they must take to eradicate these discriminatory practices, which will allow for Federal funds to resume for these important infrastructure projects," a DOT spokesperson tells Axios in a statement.

NITA (Northern Illinois Transit Authority) Act

The state legislature passed a $1.2 billion funding bill during the fall veto session for area transit — CTA, Metra and Pace. Part of the law includes the creation of NITA to replace the RTA, which currently oversees the separate agencies.

• NITA will be responsible for setting new fare prices across all systems, including the creation of a universal fare collection app by 2030.

Of note: The legislation stipulates no new fare increases in 2026.

More transit stories

For 2026, expect lower mortgage rates but a still-tough housing market.

Why it matters: Homes remain unaffordable for many, especially younger people.

Here's what industry economists predict is in store for rates, sales and more next year.

Rates will stay above 6%

U.S. mortgage rates are expected to hover near 6.3% in 2026, according to Realtor.com chief economist Danielle Hale.

• Redfin also projects 30-year fixed rates will average 6.3%, dipping from 6.6% in 2025 while staying well above pandemic-era levels.

More roommates, fewer babies

High housing costs may be reshaping U.S. households.

• Think: More adult children living with their parents (and vice versa), smaller families and more friends buying homes together, "often with prenup-style agreements," according to Redfin researchers.

What we're watching: "Renovations that create space for multiple generations are becoming increasingly common" — from garage conversions to separate suites for adult kids or aging parents — as "families rethink the homes they already have," Redfin chief economist Daryl Fairweather tells Axios.

More housing predictions

💰Tickets for Saturday's playoff game at Soldier Field are shattering NFL records. The average price is $813, making it the most expensive ticket for a Wild Card round ever, according to TickPick.

• "It's a unique combination of an iconic rivalry, playoff stakes and fans having to endure a playoff drought over the past few years," TickPick's Kyle Zorn tells Justin.

🗳️ U.S. Rep. Mike Quigley (5th) says he will run for mayor in 2027. (WGN Radio)

• Retiring U.S. Rep. Jan Schakowsky plans to endorse Evanston Mayor Daniel Biss to succeed her as representative of Illinois' 9th district. (Evanston Now)

Last year served up another round of great tavern-style pizza, more steakhouses, Malört-flavored everything, omakase madness, new tasty Balkan spots and excellent British gastropub fare.

• So what are we looking forward to this year?

Kouklas at 7620 N. Milwaukee Ave. in Niles

Chef Jimmy Bannos Jr. (Beard winner for Purple Pig) is back leading a kitchen of reimagined Greek cuisine in a 7,200-square-foot rebuilt spot featuring an olive and oak-burning hearth.

Dig in: Expect souvlaki, milk-braised lamb shank, whipped feta, taramosalata and pastitsio, but also tempura-style celery root and flaming bone marrow finished tableside with Greek brandy.

Opened: Dec. 29, 2025.

Khmerican food at Hermosa

Banchet-winning chef Ethan Eang Lim is launching a winter "Khmerican Supper Club" menu at Hermosa, blending East and Midwestern with caviar-topped deviled quail eggs and a relish tray of red curry pimento cheese and green curry goddess with crudite and pickles. Served through March.

The Radicle, 2375 N. Milwaukee Ave.

Chef Joe Frillman (Daisies) is launching his long-awaited coastal Italian meets Midwest restaurant and bar in the old Daisies location in Logan Square.

Expect: $10 aperitivo-style cocktails, a raw bar, veggie plates and artisanal pizzas.

Opening: This month.

More spots plus Restaurant Week options

Andersonville's utility boxes have been brought to life by Chicago portrait artist Gabi Bozeman.

The big picture: Through her creations in this Northside neighborhood, Bozeman is giving the community a face-to-face interaction with her work, versus viewing larger murals from a distance.

Flashback: After the Andersonville Chamber of Commerce spotted several of Bozeman's pieces last September, they reached out about revamping seven utility boxes.

What they're saying: "Art is already so high priced and it's usually hoarded in a lot of gallery spaces, and that's fine," Bozeman told Axios. "I think it's nice that everyday people walking by, not expecting it, can have a moment to engage with art in their day."

What to expect: The seven art installations run along Clark Street from Winnemac to Bryn Mawr.

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