New York City’s Metropolitan Transportation Authority (MTA) has approved a fare increase for subway and bus trips, marking the first time in eight years that the base fare will be raised. The decision comes as the MTA aims to balance its budget amid financial uncertainty caused by the coronavirus pandemic. The base fare will increase from $2.75 to $2.90 by August 20th.
The impact of this fare increase is expected to be felt across the United States, as transit systems of all sizes have experienced significant losses due to decreased ridership. A survey conducted by the American Public Transportation Association revealed that 71 percent of transit agencies with operating budgets over $200 million were predicting budget shortfalls. Other cities, such as Washington, D.C., and the San Francisco Bay Area, have also increased their fares this year.
While New York City has seen a rebound in weekday ridership, it remains at about 70 percent of pre-pandemic levels. Advocates argue that lower-income workers, who rely on public transit to reach their jobs, will bear the greatest burden of the fare increase, especially as the cost of essential goods and services continues to rise.
Janno Lieber, the MTA chairman, defended the fare increase as a necessary measure to keep up with inflation and maintain the transit system. He acknowledges the downsides of asking people to pay more but emphasizes the importance of mass transit for New Yorkers.
The base fare of $2.75 has remained unchanged since 2015. In addition to the subway and bus fare increase, the MTA board also approved increases in monthly passes for the Long Island Rail Road and Metro-North Railroad by up to 4.5 percent. Tolls on bridges and tunnels will also increase by 6 percent for E-ZPass users and 10 percent for those paying by mail.
The fare increase has sparked concerns about its impact on residents struggling to cover basic needs. According to the United Way of New York City, half of working-age New Yorkers are struggling this year, up from 36 percent in 2021. Advocates worry that the fare increase will worsen an already strained system, forcing people to skip meals or rely on emergency food pantries to afford transportation.
However, the MTA argues that the fare increase is necessary for the survival of the transit system, as it heavily relies on rider payments. The authority is also implementing a congestion pricing program to collect funds from drivers for infrastructure enhancements, but those funds can only be used for capital projects, not operating costs.
Earlier this year, the MTA faced a budget gap of nearly $3 billion by 2025. While a bailout package from Governor Kathy Hochul and Albany lawmakers helped alleviate some of the financial strain, it was not enough to avoid a fare increase. The state’s funding package includes a $65 million payment to prevent a larger fare increase.
To mitigate the impact of the fare increase, many have urged New York City Mayor Eric Adams to expand eligibility requirements for the Fair Fares program, which subsidizes public transit fares for low-income individuals and families.
Overall, the fare increase reflects the MTA’s efforts to stabilize its finances and ensure the continuity of the transit system. However, it also raises concerns about the affordability of public transportation for vulnerable populations in New York City.