MTA approves $20 billion budget with fare increase for 2025

Investing.com -- The Metropolitan Transportation Authority (MTA), the largest mass-transit provider in the U.S., has approved a nearly $20 billion operating budget for 2025. This budget includes a planned 4% increase in fares and tolls. The MTA operates New York City's subways, buses, and commuter trains, and typically raises its fees every two years.

According to MTA documents, the fare and toll increases are scheduled for August, following public hearings. The MTA's board is expected to vote on the new fare and toll pricing structure in 2025.

The approved budget also anticipates the start of a congestion pricing program on Jan. 5. This initiative, the first of its kind in the U.S., will charge most passenger cars $9 to drive into the tolled district, which extends south of 60th Street.

"The budget speaks to our successes and provides for continued positive growth," stated Janno Lieber, the MTA's chief executive officer, during the MTA's monthly board meeting on Wednesday.

The revenue from the congestion pricing will not be added to the MTA's operating budget. Instead, it will be used to fund infrastructure upgrades to modernize the century-old transit system. However, a delay in the tolling plan could result in higher than expected debt service payments and an increase in maintenance costs for the MTA's operating budget.

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Source: Investing.com