The Mamdani administration is facing challenges in budgeting for Metropolitan Transportation Authority (MTA) subsidies as the mayor pushes to make city buses free, according to a budget watchdog.
New York City is projected to owe approximately $621 million more in MTA subsidies in fiscal year 2027 than what the administration has budgeted for, as highlighted by the New York City Comptroller’s office. The underbudgeting in the plan, particularly for “contributions to MTA,” has been pointed out as a significant issue.
Despite the budget discrepancies, Mayor Zohran Mamdani remains committed to the proposal of making city buses free, which could incur costs of around $800 million.
“We have to make this a city where working people can get around,” Mamdani emphasized, addressing concerns about underbudgeting for programs like Fair Fares, which provide free and reduced fares to low-income New Yorkers.
Mamdani’s budget proposal for fiscal year 2027 has drawn criticism from transit advocates for keeping the city’s Fair Fares contribution flat at $96 million, despite the increasing operational support required for the MTA.
The city’s obligations for paratransit, school and reduced fares, and certain bus and commuter rail operations are mandated by state laws and agreements, leading to fluctuating budgeted amounts.
Recent figures from the Independent Budget Office show a steady increase in subsidies for the MTA operations, indicating a rising financial burden on New York City.
MTA’s financial challenges, including escalating overtime spending and fare evasion losses, have raised concerns about its ability to sustain new initiatives like Mamdani’s free bus pledge without additional funding.
The final budget approval from the City Council is pending, with New York City’s spending plan expected to be adopted in June.
“We have an executive budget and then an adopted budget before the end of June,” Mamdani stated. “And I continue to believe deeply in the importance of making public transit more affordable.”
