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NYC budget hawks say subway discounts for the poor are better than free buses for all
By
Ramsey Khalifeh
Published May 6, 2026
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By
Ramsey Khalifeh
Published May 6, 2026
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A fiscal watchdog report released Wednesday poked a hole in Mayor Zohran Mamdani’s pledge to make New York City’s buses free, pointing out the plan wouldn’t help the working poor who take the subways.
The report, written by the nonprofit Citizens Budget Commission, argued the estimated $900 million it would take to make the MTA’s buses fare-free each year would be better spent on expanding the city’s Fair Fares program, which offers half-priced OMNY cards to low-income New Yorkers.
“While eliminating fares would reduce costs for bus riders, it would not save subway commuters money,” the report stated.
New Yorkers are eligible for a Fair Fares discount if their household makes no more than 150% of the federal poverty line — or $22,600 a year for a single person. The CBC argued that raising the threshold to 250% of the poverty line, or $39,900 for a one-person household, would do more to help the poor than making the buses free.
The nonprofit estimated increasing the income limit would cost taxpayers $232 million a year, up from the $86 million the program currently spends annually.
CBC President Andrew Rein said it’s in the city’s best interest to expand the income limit to include more people who don’t own cars and have no choice but to use public transit to get to work.
“Nearly three-quarters of them who use transit to get to work use the subways. And so if we expand Fair Fares, we're giving them the choice that works best for them,” said Rein. “That's why we think being agnostic but providing savings to working New Yorkers is the most effective way."
“It would have a great impact at a relatively low cost,” he added.
The report comes a month after City Council Speaker Julie Menin proposed a different expansion of Fair Fares. Instead of raising the program income limit, Menin pitched a plan to make the subway and buses completely free to ride for those who are currently eligible.
Menin's office said the reformed program would cost $221 million a year.
MTA data analyzed by the CBC in the report found that making buses free wouldn’t reduce the costs of travel for most riders, since 76% of daily transit trips are on the subway and the 12% of bus riders who transfer onto the subway would still have to pay the fare.
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Politics
new york city
transportation
Ramsey Khalifeh
Ramsey Khalifeh is a transportation reporter on the NYC Accountability desk covering the largest transit system in the country. He was previously a general assignment reporter at Gothamist and worked on the Boston Globe's metro and copy desk. Got a tip? Email [email protected]
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