The New York Metropolitan Transportation Authority (MTA) sent a letter to the New York State Congressional delegation immediately requesting $3.9 billion in federal funding as Congress considers its next COVID-19 relief package.
Additionally, the MTA has released new third-party economic analysis from McKinsey & Company examining the expected impact of the COVID-19 crisis on the MTA’s operating budget, which projects the full impact of the pandemic to reach up to 8 $.5 billion in 2020. The analysis examines how ridership will be affected this year as the system begins to rebound, and projects a massive drop in toll and fare revenue between $4.7 billion and $5.9 billion , a significant drop in state and local tax revenues between $1.6 billion and $1.8 billion, and a huge increase in costs associated with customer and employee safety of up to $800 million.
“I request that upcoming federal legislation include an additional $3.9 billion to stem the immediate financial hemorrhage in the MTA’s 2020 operating budget,” MTA President and CEO Patrick J. Foye said. in a letter to the New York Congressional delegation, which, along with McKinsey & Company’s economic analysis, can be found below. “Within weeks, the crisis in New York has escalated significantly and we anticipate significant additional losses due to the extraordinary economic downturn facing the region and the nation. I thank the New York Congressional delegation for their leadership in securing the first round of funding and we are once again calling on Congress to step in and do the right thing for our millions of customers, tens of thousands of employees and for all of New York and the nation.”
Last month, the MTA secured nearly $4 billion in federal funding through the CARES Act. The COVID-19 crisis has since worsened significantly in New York, eclipsing initial estimates and necessitating further detailed economic analysis. Ridership was down 93% on the subways, 95% on Metro-North and 97% on the Long Island Railroad, with bridge and tunnel crossings down 62%. The MTA is immediately requesting $3.9 billion in emergency funding from the federal government, which is the midpoint of the projected impact range examined in the MTA’s 2020 operating budget analysis, after subtracting the 3, $8 billion that needs to be poured into the CARES Act.