NYC Transit System Faces $432 Million Budget Gap, DiNapoli Says
The MTA is relying on $600 million of expected FEMA funds for its operating budgets.
Photographer: Yuki Iwamura/BloombergNew York City’s transit system faces a potential $432 million budget shortfall this year because the subway, bus and commuter rail operator may need to wait until 2026 to get reimbursed from federal money owed for cleaning costs during the Covid pandemic, according to a report from Thomas DiNapoli, the state’s comptroller.
The Metropolitan Transportation Authority, the largest transit provider in the US, has yet to receive $600 million in Federal Emergency Management Agency funds to cover additional cleaning expenses the MTA paid for during the pandemic. The transit agency included $300 million of FEMA funds in its $20 billion operating budget for 2025, but DiNapoli doesn’t anticipate that MTA will get the federal reimbursement this year. Higher than expected overtime costs will widen the estimated budget deficit to $432 million, according to the report, which DiNapoli released Wednesday.