The Metropolitan Transportation Authority (MTA) today released its final 2026 operating budget and four-year financial plan, introducing a new round of operating efficiencies over the next four years that significantly reduce out-year deficits announced in the July Financial Plan by a total of $418 million. New cost savings of $675 million are the primary driver of this achievement and raises the cumulative total to more than $2 billion in operating savings through 2029.

The plan shows a continued balanced operating budget for 2026 and reduces the projected deficit for 2027 by approximately half, from $345 million to $160 million, with additional deficit reductions in 2028 and 2029 thanks to a new round of operating efficiencies that the Authority has identified. The plan forecasts $75 million more in operating efficiencies for 2027; $150 million for 2027; $200 million for 2028; and $250 million for 2029, totaling $675 million in new cost savings. This is in addition to the annual recurring savings of $500 million the Authority is on track to achieve this year, originally reflected in the November Financial Plan of 2022.

The MTA has identified new cost savings through a variety of improvements, including savings achieved from transitioning to Tap and Ride, lower maintenance costs with the rolling deployment of newer and more reliable subway and rail cars, optimization of railroad train crew schedules and other identified efficiencies of internal processes across all agencies. These changes improve MTA operations and set up the Authority for long-term savings.

Overall, revenue and expenses are on budget for 2025. Farebox revenue is tracking to budget, primarily driven by stronger farebox performance from the commuter railroads, and overall operating expenses remain below budget.

-via Press Release