WASHINGTON, D.C. — U.S. Secretary of Transportation Sean P. Duffy sharply criticized the Southeastern Pennsylvania Transportation Authority (SEPTA) on Thursday, accusing the agency of “gross mismanagement and neglect” as it grapples with mounting safety failures, financial instability, and service cuts that have alarmed commuters and federal regulators alike.
In a letter sent to Pennsylvania Governor Josh Shapiro, Duffy said the transit system’s worsening conditions represent a “dangerous” breakdown in oversight and accountability that demands immediate state intervention.
“The gross mismanagement and neglect of Pennsylvania’s rail and bus systems is alarming,” Duffy said. “As the head of the state, I’m calling on Josh Shapiro to oversee the safety of riders and transit workers. It’s time to get SEPTA’s fiscal house in order.”
The Department of Transportation’s rebuke follows a string of troubling incidents and escalating financial woes at the Philadelphia-based agency, which serves nearly 700,000 daily riders across five counties.
Safety Concerns Mount
According to the Department, there have been five thermal events, including onboard fires, on SEPTA commuter rail vehicles in 2025, two of which occurred last month. In response, the Federal Railroad Administration (FRA) issued Emergency Order No. 34 on October 1, identifying 14 safety deficiencies in SEPTA’s Silverliner IV fleet and requiring immediate corrective action.
Federal inspectors have since been deployed to SEPTA maintenance facilities and train yards to monitor compliance.
The Department also cited Federal Transit Administration (FTA) demands from August 6 regarding the storage of SEPTA’s Proterra electric buses, which have been flagged for fire risks. The inquiry seeks assurances that safety and environmental standards are being met as the agency integrates electric vehicles into its fleet.
Financial Turmoil and Service Cuts
The Transportation Department’s letter comes amid SEPTA’s deepening fiscal crisis. Facing a $213 million operating deficit for fiscal year 2026, the transit board voted in June to approve a plan slashing service by 45 percent and raising fares by an average of 21.5 percent — a move expected to make Philadelphia’s base fare among the highest in the nation at $2.90.
SEPTA Board Chair Kenneth E. Lawrence Jr. said at the time that the decision was “a vote none of us wanted to take,” calling it a direct result of inaction by state lawmakers on new funding measures. General Manager Scott A. Sauer warned the cuts would “effectively dismantle SEPTA,” resulting in widespread service loss and long-term economic damage to the region.
Despite cost-cutting measures that saved $30 million through pay freezes, fare hikes, and deferred projects, the agency’s debt has continued to spiral, prompting a negative outlook from Moody’s Ratings earlier this year.
Political and Economic Implications
Governor Shapiro has proposed a statewide transit funding package to stabilize systems like SEPTA, which are still struggling from post-pandemic ridership declines and inflation-driven operating costs. The Pennsylvania House advanced that proposal earlier this month, but negotiations remain ongoing in Harrisburg.
Duffy’s intervention adds federal pressure to the debate, framing the agency’s problems as both a public safety issue and a matter of fiscal responsibility.
“The federal government has provided billions in emergency transit funding since 2020,” Duffy said in the letter. “But that lifeline cannot substitute for accountability. Riders deserve safe, reliable, and financially stable transit — and Pennsylvania’s leadership must ensure that happens.”
Looking Ahead
If new funding is not secured, SEPTA plans to eliminate 32 bus routes, discontinue five Regional Rail lines, and enforce a 9 p.m. curfew on all remaining rail services by early 2026. Capital projects worth more than $2 billion — including critical station accessibility upgrades — have also been deferred.
The agency, already under close federal supervision, now faces the possibility of additional enforcement actions if safety standards are not met.
With ridership still below pre-pandemic levels and operational costs continuing to climb, SEPTA’s future now hinges on whether state and local leaders can agree on a rescue plan before service reductions begin this winter.
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