The MTA board approved a $21.3 billion operating budget for 2026 on Wednesday — a plan that leans heavily on a robust economy to keep New York’s transit system afloat.
The plan anticipates a robust economy to the keep the Big Apple’s transit system afloat with 43% of the MTA’s operating budget now funded by taxes linked to the financial strength of the city and state.
Officials warned that any economic downturn could quickly leave the agency with growing deficits, even as they plan fare and toll hikes and count on new revenue from casinos.
“This is a strong plan,” said MTA Chief Financial Officer Jai Patel. “But the out-years remain challenging.
The financial plan anticipates budget gaps of $160 million in 2027, $243 million in 2028, and $306 million in 2029 — and that’s with 4% fare increases scheduled for March 2027 and March 2029.
The MTA also expects to collect hundreds of millions of dollars annually from new casinos beginning in 2026 — revenue that could be at risk if casino openings are delayed.
Board member Neal Zuckerman, who chairs the finance committee, said the plan reflects real but limited progress in cutting costs.
“This is not an easy organization to cut costs in,” Zuckerman said, noting that labor makes up most of the agency’s expenses.
“If we don’t find these savings, we may have to raise fares even more,” Zuckerman warned.
MTA heads bragged that the agency has already secured $500 million in savings by changing maintenance practices and bringing some work in-house. Officials pledged to trim another $250 million by 2029 but offered few specifics, promising details “in future plans.”
Congestion pricing, which began in early 2025, will not help offset day-to-day costs. By law, that money can only fund long-term construction and modernization projects, not operations.
Still, MTA Chair and CEO Janno Lieber insisted the agency’s finances are “very solid” while simultaneously acknowledging the risk of an economic slowdown.
“The MTA is in very solid financial shape,” said Lieber, who rakes in $400,000 a year as MTA boss.
“We’re always conservative in our projections,” he said. “I’m always concerned about the economy — it affects ridership and everything else — but I’m optimistic. We plan for every scenario.”
