Feds: OK for capital cash to fill MTA deficit

Federal money earmarked for construction projects and new trains and buses can be diverted to cover MTA budget gaps linked to the coronavirus outbreak, officials said Friday.

K. Jane Williams, acting administrator of the Federal Transit Administration, made the decision to help the MTA and other agencies in states where governors have issued emergency declarations to deal with the myriad challenges presented by the COVID-19 crisis.

The MTA did not immediately comment on Williams’ decision. But its chairman, Pat Foye, said on NY1 Friday that the MTA and other transit agencies across the country “are going to need substantial federal help going forward.”

John Samuelsen, the international president of Transport Workers Union, applauded the federal initiative, and he hopes the MTA welcomes it.

“They have an operating deficit and it’s a huge problem, but they are flush with [money for] capital projects,” said Samuelsen.

The MTA is “in desperate need for short-term operating cash. This is a super good thing that they should take advantage of,” Samuelsen said.

Subway ridership is down around 18%, MTA officials have said. Ridership on the Long Island Rail Road is down 31%, while Metro North ridership has dropped by close to half. Foye said that’s partly because companies have encouraged employees to work from home.

Lower ridership is a hit on the MTA’s fragile finances. Expenses are also up thanks to increased cleaning of stations, trains and buses.

Thus far, the MTA has not indicated it will cut service as a safety measure. Washington, D.C.’s Metro said that starting Monday, it’s reducing weekday subway and bus service to a Saturday schedule.