In a significant move for New York City’s future, the MTA board has officially approved a $65 billion, five-year capital plan aimed at overhauling the city’s aging mass transit system. The decision, made during a board meeting on Wednesday, comes after months of funding uncertainty and political negotiation. Fortunately, a key turning point arrived with the passage of Governor Kathy Hochul’s budget, which included an increase in the payroll mobility tax. This adjustment, targeted at large businesses, is projected to bring in $1.4 billion annually to support the ambitious upgrades.
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Key Funding Sources Backing the MTA New York Transit System plan
Beyond the state’s contribution, the plan also hinges on several other sources of funding. The City of New York is expected to contribute $3 billion, while the federal government is anticipated to cover 20% of the total costs. Although a lawsuit and political friction between local officials and the Trump administration loom in the background, MTA officials remain optimistic that federal funding will continue uninterrupted. However, it’s worth noting that there is still a $3 billion gap in the financial plan. To address this shortfall, MTA leaders are exploring multiple strategies, such as cutting costs on past construction projects and selling surplus agency-owned real estate.
Modern Upgrades and Accessibility Improvements
The capital plan itself includes several high-impact improvements. For example, it allocates funding to purchase 1,500 new subway cars and make 60 stations fully accessible for all riders. Additionally, new anti-fare-evasion turnstiles are planned to be installed across the system. This modernization effort is long overdue, especially considering recent reports from Gothamist that exposed the deteriorating and outdated technology currently in use throughout the subway network. Perhaps most notably, the plan designates $2.75 billion for advancing Governor Hochul’s Interborough Express project, a transit line connecting Brooklyn and Queens.
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Final Approval and What’s Next
Although this marks the second time the MTA board has approved the plan, the first attempt was rejected by top state lawmakers last December, the outlook is now far more favorable. With a clear state budget in place and major funding commitments secured, MTA officials are confident that the Capital Program Review Board will grant the final sign-off. Ultimately, this capital plan represents a crucial step toward delivering a safer, more efficient, and future-ready transit system for millions of New Yorkers.
MTA New York City Transit System plan Overview
Total Investment: $65 billion—the largest capital plan in MTA history
Timeline: 2025 through 2029
Primary Goals:
Achieve a state of good repair across subways, buses, commuter rail, bridges, and tunnels
Modernize infrastructure, including signaling systems and fare collection
Expand accessibility with at least 60 new ADA-compliant subway stations
Advance the Interborough Express project connecting Brooklyn and Queens
Key Funding Sources:
$15 billion from congestion pricing revenue, $1.4 billion annually from increased Payroll Mobility Tax on large businesses, $14 billion anticipated from federal funding, $3 billion from New York City, $3 billion from MTA self-funding, including cost savings and asset sales
Major Projects:
Procurement of 1,500 new subway cars and 2,500 buses (including 500 zero-emission models)
Signal modernization on key subway lines
$2.75 billion allocated for the Interborough Express
$7.1 billion dedicated to accessibility improvements
Economic Impact:
Estimated to generate $106 billion in statewide economic output over five years
Supports approximately 72,700 jobs annually during the plan’s duration
