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Hochul, MTA boss itching for more federal cash after Dems’ blue wave — while facing $900M budget hole
New York Governor Kathy Hochul and Metropolitan Transportation Authority chairman Janno Lieber want the incoming Democratic-led Congress to secure more federal funding for the city’s transit system. Their push comes as the MTA faces a projected $900 million budget gap by 2030 and continues to raise fares and fees.
Lieber said New York carries 43% of the country’s mass-transit riders but receives 17% of federal transit funding. The MTA’s $68.4 billion 2025–2029 capital plan already anticipates $14 billion in federal aid, while its operating budget exceeded $21.3 billion this year. Hochul is seeking federal money for the Second Avenue Subway and Interborough Express, and wants Washington to fund Penn Station’s redevelopment; a budget analyst cautioned that replacing state and city contributions would not necessarily return money to taxpayers.
In short
- The MTA projects a $900 million budget gap by 2030.
- Janno Lieber says New York gets 17% of federal transit aid despite 43% of riders.
- Hochul wants federal funding for major transit projects and Penn Station.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
New York’s transit system serves an unusually large share of the nation’s riders, so seeking federal support proportionate to its use could be fair and could help fund projects with benefits beyond the city. Federal investment in major upgrades may also improve reliability and capacity for commuters, while easing pressure on fares and local budgets.
The case against
The MTA already plans for substantial federal aid, and its projected budget gap raises questions about whether more grants would address lasting operating costs or defer difficult choices. Federal funds come from taxpayers nationwide, so critics could argue that New York should first show how state and city contributions, fare revenue and spending decisions will make the system financially sustainable.