Modernization of New York City's Transit to Boost Economy by $106 Billion
New York City's Metropolitan Transportation Authority (MTA) plans to invest a record $68.4 billion to upgrade its aging transit infrastructure. This strategic investment is projected to generate an estimated $106 billion in economic activity, according to a report commissioned by Ernst & Young infrastructure Advisors.
The five-year capital budget will focus on replacing outdated railcars, upgrading subway signal systems, and renovating the deteriorating train shed at Grand Central Terminal. The majority of these funds will go towards maintaining and improving the MTA's current assets, while also enhancing service reliability.
However, the report notes that nearly half of the plan remains unfunded, totaling $33.4 billion. Governor Kathy Hochul and state legislative leaders have pledged to identify funding sources in the coming weeks.
The $65.4 billion allocated for the MTA's transit and rail network, along with an additional $3 billion for bridges and tunnels, is estimated to create approximately 72,700 jobs while generating $61.5 billion in direct economic activity.
"This analysis demonstrates that fully funding the MTA's capital program will be a mutually beneficial investment, significantly improving transit services while providing a transformative boost to the state's economy," said Kathryn Wylde, president and CEO of the Partnership for New York City, which commissioned the report.