MTA Approves $20 Billion Budget Featuring Wage Increases for 2025

Investing.com -- The Metropolitan Transportation Authority (MTA), the largest public transportation provider in the U.S., has approved an operating budget of approximately $20 billion for 2025. This budget includes a planned 4% increase in fares and tolls. The MTA, which operates New York City's subways, buses, and commuter trains, typically raises fares every two years.

According to MTA documents, fare and toll increases will occur in August following public hearings. The MTA board is expected to vote on the new fare and toll pricing structure for 2025.

The approved budget also anticipates the start of a congestion pricing program on January 5. This initiative, the first of its kind in the U.S., will charge a fee of $9 for most passenger vehicles entering the charged zone, which encompasses the area south of 60th Street.

MTA's CEO, Janno Lieber, stated during the MTA's monthly board meeting on Wednesday, "The budget reflects our successes and provides the means for continued positive growth."

Revenue from congestion pricing will not be added to the MTA's operating budget. Instead, it will be used to finance infrastructure improvements to modernize the century-old transit system. However, any delays in the pricing plan could lead to higher-than-expected debt service payments and increased maintenance costs in the MTA's operating budget.