New York Gov. Kathy Hochul recently signed new legislation into law as part of the FY26 Enacted Budget that will fully fund the Metropolitan Transportation Authority’s (MTA) $68.4 billion 2025-29 Capital Plan.
“Public transit is the lifeblood of New York and our investments in this century-old system will ensure it can thrive for years to come,” Hochul said. “For too long, leaders had ignored the needs of straphangers and underfunded public transit. When I took office we changed that approach — and now, we’re making long-overdue investments to keep this system strong.”
The plan includes investments in the Interborough Express, a new rapid transit service between Brooklyn and Queens; the rehabilitation of the Grand Central Artery, a four-mile stretch that carries 98 percent of all Metro-North service; and improving the overall rider experience.
With the funding, MTA will be able to make Americans With Disabilities Act-accessibility improvements at more than 65 subway and railroad stations, upgrade maintenance facilities, purchase thousands of new subway and rail cars, repair structurally deficient bridges and tunnels, renew electric power systems to enhance reliability, make safety enhancements at stations and across infrastructure systems, modernize signals, and install modern fare gates at more than 150 stations to prevent fare evasion. The agency also will be able to increase resiliency against flooding and protect the Hudson Line against severe weather, and grow its zero-emissions bus fleet.
“The governor and legislature have been great supporters of MTA riders and understand the importance of mass transit to New York’s economy,” MTA Chairman and CEO Janno Lieber said. “An extraordinary effort went into identifying what needs to be done to maintain the $1.5 trillion asset that is our region’s transportation network. The women and men of the MTA look forward to getting to work on important capital projects that deliver on the governor’s vision and ensure that New Yorkers keep moving for decades to come.”
MTA’s funding plan also includes $6 billion for the Metro-North Railroad, $6 billion for the Long Island Railroad and $800 million to advance regional investments that help connect underserved communities, create additional capacity, and respond to changing populations and land-use patterns.
The agency also will cut the regional Payroll Mobility Tax (PMT) for roughly 10,000 small businesses and eliminate the PMT for self-employed people earning $150,000 or less and for local governments outside of New York City.
The FY 2026 Budget requires New York City provide $3 billion toward the MTA capital plan and requires the MTA to find $3 billion in efficiencies. It also reallocates up to $1.2 billion from the Penn Station redevelopment project to priority capital projects