New York’s MTA is on track to run out of cash by August, chairman says
New York’s Metropolitan Transportation Authority will run out of money in August if the U.S. Senate does not approve the economic stimulus measure that would provide about $3.9 billion to the agency, Chairman Patrick Foye said.
“We’re in a dire financial situation,” Foye said during a Bloomberg Television interview Monday, as the city prepared to enter a second phase of reopening, with about 300,000 more workers expected to occupy offices, open air restaurants and small businesses such as barber shops. “It is absolutely critical that the MTA receive that money.”
The $3 trillion measure passed by the Democrat-controlled House of Representatives would provide about $1 trillion to state and local governments being battered by the shutdowns. The amount the MTA would receive could carry it through the rest of the year, Foye said.
Earlier this year, the system received $3.8 billion with the enactment of the $2 trillion stimulus package in March.
Agency officials expect to need the remainder of its available funds to cover losses in July, said spokesman Tim Minton. Those funds will be distributed to the agency in August.
The transit agency, critical to a region that contributes about 8% of the U.S. economy, runs the city’s buses and subways, regional commuter rail systems and several bridges and tunnels. Its revenue since the Covid-19 lockdown began in March plummeted along with a 90% drop in subway and bus ridership, while costs increased as crews disinfect its train cars and stations daily, Foye said.