Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Elected Officials Announce Federal Bill To Aid Debt-Burdened Taxi Drivers
By
Elizabeth Kim
Published Jan 17, 2020
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Richard Drew/AP/Shutterstock
By
Elizabeth Kim
Published Jan 17, 2020
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
In a move that anticipates a major bailout program for the city's struggling taxi industry, a group of state Congressional officials led by Congressman Gregory W. Meeks plan to introduce a federal bill that will allow taxi owners who accept debt relief to exclude that money from taxable income.
Meeks made the announcement during a press conference at City Hall on Friday, where he was flanked by Congresswomen Carolyn Maloney and Nydia Velasquez. Under federal tax rules, debt forgiveness can be taxed, meaning that any potential bailout plan would incur tax costs on recipients. Thousands of taxi drivers are believed to be carrying huge loans after the city knowingly sold them medallions at inflated prices.
"The city must step up to the plate and do the right thing," he said.
Referring to his own bill, he added: "We won’t wait to do the right thing."
At the height of the bubble in 2014, the price of a taxi medallion in New York City rose to more than $1 million. They are now estimated as being worth between $150,000 and $200,000. Pressure has been mounting on the city to provide financial aid for the drivers, most of whom are immigrants. At a public hearing before the City Council last June, taxi drivers testified to the financial and personal devastation the crisis has wrought on their lives.
“Every single day, […] every time I go on the streets, I think about taking my life,” said Mohamadou Aliyu, a medallion owner from the Ivory Coast.
Several U.S. elected officials, including Representative Alexandria Ocasio-Cortez, have criticized the city for enabling predatory lending practices that sank many drivers into debt.
The New York Times, which broke the story of the financial scandal last year, reported on Thursday that a City Council-led task force was preparing to submit a bailout recommendation of up to $500 million. The plan would involve the city creating a public-private partnership entity that would buy back the loans at discounted prices and then arrange debt-forgiveness and low-interest repayment plans, according to the paper.
Reached for comment, a spokesperson for Ydanis Rodriguez, the City Councilmember who co-chairs the 19-member task force, declined to confirm the Times story. Rodriguez, however, has been among several elected officials that have publicly called for a bailout.
The panel's report is set to be issued at the end of the month.
On Friday, Bhairavi Desai, president of the National Taxi Workers Alliance, which first proposed establishing a debt-relief program, issued a statement praising the news that City Council appears to be heading toward such a plan.
"This is New York City, the wealthiest city in the world and home to mission-driven investors," Desai said. "In a city paved by taxi drivers' labor, we know this work can get done. Together, we will set a precedent to address the working-class debt that has become endemic to our economy."
Tagged
medallion crisis
taxi
bill
City Council
bailout
Elizabeth Kim
Elizabeth Kim is a reporter on the People and Power desk who covers mayoral power. She previously covered the pandemic, housing, redevelopment and public spaces. A native of Queens, she speaks fluent Mandarin. Got a tip? Email [email protected]
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
NYC Council to consider earlier Legionella reporting after deadly outbreaks
A bill facing a hearing Monday would require cooling tower owners to notify city health officials when bacteria levels reach a much lower threshold.
By
Catalina Gonella
Published Oct 18, 2026 at 7:36 p.m. ET
Staten Island fire injures 2, but spares historic 'Godfather' church
Dozens of firefighters responded to the blaze, which started in a vacant warehouse. It was contained within three hours.
By
Giulia Heyward
News
Staten Island fire injures 2, but spares historic 'Godfather' church
Dozens of firefighters responded to the blaze, which started in a vacant warehouse. It was contained within three hours.
By
Giulia Heyward
Bail reform remains major issue in NY governor's race, 7 years after it became law
By
Gino Fanelli
NYPD identifies Bronx man, 26, killed in Midtown subway shooting
By
Ryan Kost
,
Elizabeth Kim
and
Phil Corso
Have you seen this Yorkie? NYPD looking for adorable pup dognapped from her Queens home
By
Ryan Kost
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .