New York’s Metropolitan Transportation Authority (MTA) released its final proposed 2025 operating budget and four-year financial plan and announced the plan has identified $100 million in cost savings from increased operational efficiencies. 

Building on $400 million in cost savings announced in July, today’s announcement brings to $500 million the total expected annual recurring cost savings projected for 2025. 

“This is highlighting the importance of what Governor Hochul and the Legislature did in 2023 and part of that deal was the MTA finding $400 million in savings without cutting service or doing any layoffs,” said MTA Chair/CEO Janno Lieber. "We've done it and now we’re growing that number to $500 million." 

MTA’s Plan

The November Financial Plan remains broadly in line with budget details announced in July. 

The plan forecasted $50 million less in deficits for Fiscal Year ’27 and ’28, totaling $100 million due in part to higher commuter rail recovery and growing vehicular traffic at Bridges and Tunnels crossing. This operating budget funds priority initiatives including the Queens Bus Network redesign, paratransit services, and fare evasion mitigation efforts. 

The 2025 Operating Budget of $19.9 billion remains 3% below inflation adjusted spending since 2019. 

Increasing Efficiency

The operating budget also achieves $400 million in efficiency savings in 2024 and $500 million in 2025. The MTA identified specific savings across all its agencies. 

NYC Transit efficiencies included implementing a new maintenance system cycle for railcars, more efficient scheduling of crews and consolidation of facility leases. 

Long Island Rail Road and Metro-North Railroad streamlined equipment maintenance and implemented various energy efficiency projects. And Bridges and Tunnels reviewed staffing requirements and reduced vacancies. 

This plan assumes a 4% fare and toll increase in both 2025 and in 2027. The MTA will rebase ridership projections using the latest ridership numbers to build updated forecasts.