New York Governor Kathy Hochul is seeking tariff exemptions for transit rolling stock purchases after an MTA report estimated current federal tariff policies could add $1 billion to the cost of the agency’s planned fleet upgrades.

The Metropolitan Transportation Authority (MTA) has committed $23 billion toward purchasing thousands of new subway cars, commuter railcars, and buses as part of what the state describes as a generational fleet upgrade. Following the report, Hochul wrote to U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer requesting exemptions for transit rolling stock purchases.

Imported Components Drive Potential Cost Increase

The MTA pointed to its R211 subway cars as an example of the challenge. The cars, which operate on lettered subway lines and the Staten Island Railway, are assembled in Nebraska and Yonkers, with more than 75% of their components made in the U.S. However, the agency said modern railcars require some specialized imported components for which domestic alternatives are unavailable.

According to the MTA, the potential $1 billion in additional costs could otherwise purchase most of the Metro-North coaches included in its plans, 150 new M9-A railcars for the Long Island Rail Road, nearly 1,000 buses, or more than 250 subway cars for the 1, 2, 3, 4, 5, and 6 lines.

“As the MTA keeps breaking ridership records, our investments in the next generation of rolling stock become more important than ever,” said MTA Chair and CEO Janno Lieber. “New subways, buses and railcars are needed to give our riders the service they deserve.”

MTA Highlights Impact on Capital Spending

MTA Rolling Stock Program Chief Jessie Lazarus said the issue extends beyond the vehicles themselves because rolling stock purchases also support manufacturing jobs.

“An investment in rolling stock is more than just an investment in a more modern, comfortable ride. It's an investment in American workers,” Lazarus said. “The MTA is committed to securing maximum value from our capital program, and that means speaking honestly and candidly about the impact of policies that dilute New York's spending power.”

Hochul characterized the tariffs as a threat to the state’s planned transit investments and the jobs associated with them. Her request for exemptions comes as the MTA works through its 2025-29 capital plan and its planned purchases of new rolling stock.