The MTA will delay potential service and personnel cuts until 2022, as federal aid helps the beleaguered transit service patch budget holes.
Public transit agencies throughout the world shuddered to a halt when the coronavirus pandemic left billions under lockdown, and with that went the daily influx of passenger payments. The MTA lost billions in fare and tax revenue, the New York Post reported.
MTA leaders warned of dire straits without a federal bailout: 9,000 jobs cut and service slashed in half. But with $8 billion in federal aid, $3.4 billion in loans and less terrible than expected losses from the coronavirus, the grim financial situation has stabilized briefly.
TA Chairman Pat Foye told members of the board on Thursday, “We have been able to eliminate the worst case service reductions that had been previously on the table for 2021. With improved financial results from last year, we are now able to take these worst case reductions off the table in 2022 as well.”
Foye said he spoke to House Majority Leader Nancy Pelosi, who assured him President Joe Biden’s stimulus plan includes an additional $8.8 billion for transit needs.