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MTA Borrows $2.9 Billion From Fed Before Window Closes

  • Subway operator is one of just two to tap muni credit line
  • Agency is using short-term borrowing to cope with revenue drop
A conductor wears a protective mask while operating a subway train in New York, on Nov. 17. 

A conductor wears a protective mask while operating a subway train in New York, on Nov. 17. 

Photographer: Gabriela Bhaskar/Bloomberg

New York’s Metropolitan Transportation Authority borrowed $2.9 billion from the Federal Reserve’s emergency credit line for states and local governments, marking the second time the transit agency has turned to the central bank as it contends with a steep drop in ridership from Covid-19.

The transit agency sold payroll mobility tax bond-anticipation notes with a 1.33% coupon for those maturing in 2023 to the Fed’s Municipal Liquidity Facility, according to data compiled by Bloomberg. Aaron Donovan, a spokesperson for MTA, confirmed the sale in an email on Thursday.