MTA Board Approves $65B Capital Plan;
Judge Rules to Keep Congestion Tolling
NEW YORK—The MTA board approved a $65 billion five-year construction plan last Wednesday in a multi-platform approach to sustain and advance New York City’s mass transit infrastructure.
The MTA passed the plan at a board meeting following Gov. Kathy Hochul’s campaign in the spring to secure funding in the state’s enacted budget for FY2025-26. A funding stream to complete the multi-year spending plan will come from an increase to the payroll mobility tax, which taps large businesses. It is expected to bring in $1.4 billion a year, which will be used to finance upgrades to the transit systems.
The MTA’s capital plan is also counting on two funding sources that are not in its control: New York City, which the agency is counting on to contribute $3 billion, and the federal government that, on paper, is 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,” it was reported in The Gothamist.
There’s still $3 billion in funding for the capital plan that hasn’t been nailed down, it was noted. 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.
Congestion Tolls to Remain
In other MTA news, a Manhattan federal judge last week wrote that the Trump administration cannot force the MTA to shut down its congestion pricing tolls — at least for now.
In a 109-page opinion, U.S. District Judge Lewis Liman granted the MTA a preliminary injunction in the transit agency’s lawsuit against the U.S. Department of Transportation over the feds’ order to kill the program, which has since Jan. 5 imposed a $9 daytime fee on drivers who enter Manhattan south of 60th Street.
Ending congestion pricing would “harm the public by depriving it of the benefits the tolling program creates,” Hon. Liman wrote, referencing improvements in travel times and reductions in gridlock across the region.
The case was expected to continue through October, but the federal government escalated its attacks on New York by threatening to withhold some highway funding for New York state if the MTA didn’t stop tolling by Wednesday. During a court hearing ahead of that deadline on Tuesday, Judge Liman issued a temporary restraining order barring the U.S. DOT from suspending any funding.
The judge’s move ensures the MTA has legal support to continue tolling until a final ruling is made in the case.
News reports curated courtesy The Gothamist
Published: July 2, 2025