MTA passes budget that includes plan to raise toll and fare revenue by 4%
The MTA Board's $19.9 billion budget covers day-to-day costs of running the transit system, including the LIRR. Credit: Newsday / J. Conrad Williams Jr./J. Conrad Williams Jr.
The MTA on Wednesday approved a $19.9 billion operating budget for 2025 that advances a plan to raise toll and fare rates next year, including on the Long Island Rail Road.
In passing its latest financial plan, the Metropolitan Transportation Authority Board also directed the transit agency to take preliminary, administrative steps in a plan to increase fare and toll revenue by 4% last year. The vote directs the MTA to schedule and advertise public hearings ahead of a separate vote on a rate hike sometime next year.
Since 2010, the MTA has largely stuck to a schedule of raising fares every other year. The last increase, in 2023, raised fares by about 4% and tolls by about 6%.
The MTA has not yet disclosed details of its next rate adjustment, including new costs for specific LIRR tickets or for a ride on a New York City subway or bus.
Currently, a monthly ticket between Hicksville and Penn Station currently costs $287. A one-way peak ticket from Ronkonkoma to Penn costs $20.50. Bus and subway fares are now $2.90 per trip. Tolls at MTA crossings including the Queens Midtown Tunnel and Throgs Neck Bridge are $6.94 for E-ZPass holders.
Because NICE Bus accepts the MetroCard, an MTA fare increase would also raise rates for Nassau bus riders.
In addition to the planned rate hikes, the MTA is also set to enact its new congestion pricing plan next month. Beginning Jan. 5, most vehicles will pay $9 for driving below 60th Street in Manhattan during peak hours and less during off hours. That revenue will be dedicated to the MTA’s capital budget, which funds major infrastructure investments.
The MTA’s latest $19.9 billion operating budget, approved Wednesday, covers day-to-day costs of running the transit system. About 63% of the budget goes to labor costs, including payroll, overtime, pensions, and health benefits.
About 43% of the MTA’s operating budget comes from dedicated tax revenues. Fare and toll revenues account for about 39%.
Although 3.1% higher than the agency’s 2024 operating budget, MTA chairman and CEO Janno Lieber said Monday that, when adjusted for inflation, the MTA’s operating costs are 3% lower than they were in 2019.
"And we’re doing that even while we’re investing in a ton of extra service across all the modes" of transit, said Lieber, pointing out the 40% increase in LIRR service that came with the opening of Grand Central Madison last year. "The budget, I think, speaks to our success and provides, I think, for continued positive growth."
The MTA Board also on Wednesday approved a $788 million deal for Siemens Mobility Inc. to design and manufacture 44 locomotives to replace the LIRR’s fleet of diesel engines, which rolled out in the mid-to-late 1990s. The new "dual mode" locomotives will be able to operate on both diesel fuel and on electrified third rail power. The first cars are expected to arrive in 2027.
Check back for updates on this developing story.
The MTA on Wednesday approved a $19.9 billion operating budget for 2025 that advances a plan to raise toll and fare rates next year, including on the Long Island Rail Road.
In passing its latest financial plan, the Metropolitan Transportation Authority Board also directed the transit agency to take preliminary, administrative steps in a plan to increase fare and toll revenue by 4% last year. The vote directs the MTA to schedule and advertise public hearings ahead of a separate vote on a rate hike sometime next year.
Since 2010, the MTA has largely stuck to a schedule of raising fares every other year. The last increase, in 2023, raised fares by about 4% and tolls by about 6%.
The MTA has not yet disclosed details of its next rate adjustment, including new costs for specific LIRR tickets or for a ride on a New York City subway or bus.
Currently, a monthly ticket between Hicksville and Penn Station currently costs $287. A one-way peak ticket from Ronkonkoma to Penn costs $20.50. Bus and subway fares are now $2.90 per trip. Tolls at MTA crossings including the Queens Midtown Tunnel and Throgs Neck Bridge are $6.94 for E-ZPass holders.
Because NICE Bus accepts the MetroCard, an MTA fare increase would also raise rates for Nassau bus riders.
In addition to the planned rate hikes, the MTA is also set to enact its new congestion pricing plan next month. Beginning Jan. 5, most vehicles will pay $9 for driving below 60th Street in Manhattan during peak hours and less during off hours. That revenue will be dedicated to the MTA’s capital budget, which funds major infrastructure investments.
The MTA’s latest $19.9 billion operating budget, approved Wednesday, covers day-to-day costs of running the transit system. About 63% of the budget goes to labor costs, including payroll, overtime, pensions, and health benefits.
About 43% of the MTA’s operating budget comes from dedicated tax revenues. Fare and toll revenues account for about 39%.
Although 3.1% higher than the agency’s 2024 operating budget, MTA chairman and CEO Janno Lieber said Monday that, when adjusted for inflation, the MTA’s operating costs are 3% lower than they were in 2019.
"And we’re doing that even while we’re investing in a ton of extra service across all the modes" of transit, said Lieber, pointing out the 40% increase in LIRR service that came with the opening of Grand Central Madison last year. "The budget, I think, speaks to our success and provides, I think, for continued positive growth."
The MTA Board also on Wednesday approved a $788 million deal for Siemens Mobility Inc. to design and manufacture 44 locomotives to replace the LIRR’s fleet of diesel engines, which rolled out in the mid-to-late 1990s. The new "dual mode" locomotives will be able to operate on both diesel fuel and on electrified third rail power. The first cars are expected to arrive in 2027.
Check back for updates on this developing story.
Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.
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