Gov Vows to Fund MTA Capital Plan; Congestion Toll Revenue on Target

ALBANY—As the final details of the New York State budget are inked, the latest word is that the final state budget will include mechanisms to fully fund the Metropolitan Transportation Authority’s $68.4 billion 2025-2029 Capital Plan.

A key component will be a “modest” increase in the payroll mobility tax, according to comments made in an Op-Ed in amNewYork on May 3. MTA Chair/CEO Janno Lieber said, “With a budget deal now reached in Albany, the MTA’s not wasting any time getting to work delivering the new $68.4 billion 2025-2029 Capital Plan. Gov. Kathy Hochul says it will be funded in full, and that promise has allowed us to kickstart projects like new subway signals on portions of the A and C lines, the next phase of work on the Grand Central Train shed that supports Metro-North service, and accessibility and station improvements on the Long Island Rail Road.”

Mr. Lieber also committed to moving forward on the $5.5-billion Interborough Express project that will create new public transit between Brooklyn and Queens, provide better transit connections among communities from Bay Ridge to Jackson Heights. The IBX would also improve access to up to 17 subway lines, dozens of bus routes, and the Long Island Rail Road.

However, Gov. Hochul did not specify what the payroll mobility increase will be and when it will go into effect, amNewYork reports. “We’re making modest adjustments to the payroll mobility tax to protect small businesses while ensuring large corporations contribute their share,” she said. “Small businesses across the New York City region will actually see their tax burden reduced by half while larger employers, whose workforce heavily relies on mass transit, will see some small increases.”

The governor stressed the state’s intent to fully fund the MTA capital plan that will help reduce subway crime and fare evasion.

A key revenue producer for the MTA is the recently launched congestion pricing. According to MTA data released on April 28, the controversial tolling program brought in $159 million in the first quarter of this year, just below the $160-million estimate and is on track to reach the MTA’s $500-million revenue threshold for the year.

While the federal government continues its call to kill congestion pricing, court ruling in that case will not likely be handed down until October at the earliest. In the interim, the MTA has vowed to continue collecting congestion pricing toll revenue.

Published: May 7, 2025

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