The MTA won’t make threatened service cuts and layoffs at least through 2022 — thanks to an influx of federal cash, transit officials said Thursday.
Public transit agencies across the country have been decimated by the COVID-19 pandemic, and New York’s MTA has been no exception — losing billions of dollars of revenue typically generated by fares and taxes.
The agency had previously said it may need to cut service nearly in half and over 9,000 transit workers could lose their jobs.
On Thursday, however, MTA Chairman Pat Foye told agency board members that $8 billion in federal funding, $3.4 billion in loans and better-than-expected finances had staved off immediate fiscal disaster.
“We have been able to eliminate the worst case service reductions that had been previously on the table for 2021,” Foye said.
“With improved financial results from last year, we are now able to take these worst case reductions off the table in 2022 as well.”
Meanwhile, the MTA’s $51.5 billion modernization plan, which officials put on hold due to the pandemic fiscal crisis, will finally commence with a $6 billion investment in 2021, the Wall Street Journal reported.
Future cuts are still on the table for 2023 and onwards.
But Foye expressed optimism that those cuts could be avoided, citing assurances from US House Speaker Nancy Pelosi that President Joe Biden’s proposed COVID-19 relief bill would add provide another $8.8 billion.