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MTA board approves $65B plan to save NYC transit systems

By

Stephen Nessen

Published May 29, 2025

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A depressing train yard. A subway car sits next to an old, rusted yellow work train. In the foreground, a piece of equipment is wrapped in plastic that says "Engine good." The word "good" is perhaps the only positive thing about this image. This shows an MTA yard in the Bronx where train equipment is repaired. But it's a hopeless place, in dire need of upgrades and repairs. The MTA hopes to upgrade the facility through its latest capital plan.

 

Li Qiang

By

Stephen Nessen

Published May 29, 2025

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The MTA board approved a $65 billion five-year construction plan on Wednesday that aims to rescue New York City’s mass transit infrastructure from the brink of collapse.

The MTA passed the plan at a board meeting thanks to Gov. Kathy Hochul’s budget, which includes an increase to the payroll mobility tax. That tax hike on large businesses is expected to bring in $1.4 billion a year, which will be used to finance upgrades to the transit systems.

The capital plan also counts on the city to contribute $3 billion.

Another key contributor to the funding – at least on paper – is the federal government.

The feds are expected to fund 20% of the plan. The MTA said it expects that money to flow despite a contentious ongoing lawsuit with the Trump administration over congestion pricing and a war of words over subway safety.

There’s still $3 billion in funding for the capital plan that hasn’t been nailed down. MTA officials said they could find the money by cutting costs on previous construction projects, as well selling some of the agency’s real estate holdings, among other ideas.

“We expect we’ll accomplish work more cheaply,” MTA Chair Janno Lieber said.

The substance of the capital plan hasn’t changed since it was first pitched in November. It includes buying 1,500 new train cars, making 60 stations accessible, as well as installing new turnstiles that would prevent fare evasion.

Gothamist reported on the conditions of the subways earlier this year in a series of stories that centered on the fragile, remarkably antiquated technology that keeps many trains running.

The plan also includes $2.75 billion that advances Hochul's pet project, the Interborough Express.

Wednesday’s vote marked the second time the MTA board approved the plan. The top two members of the state Legislature rejected it on Christmas Eve, saying the funding was unclear.

With the new state budget in place, MTA officials expect the body that gives the final sign-off, the Capital Program Review Board, will approve.

Tagged

Politics

new york city

transportation

Stephen Nessen

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Stephen Nessen covers transportation. Since 2008 he has reported on everything from Occupy Wall Street, the rebuilding of the World Trade Center site, Hurricane Sandy, to Trump’s campaign for president. His transportation reporting has taken him everywhere from the MTA’s secret Rail Control Center to the gleaming subways of Seoul. Got a tip? Email [email protected].

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Gothamist is funded by sponsors and member donations

Gothamist is funded by sponsors and member donations

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