MTA borrows $1B as ridership tanks

Near-empty trains and buses mean drained bank accounts at the MTA, which said Wednesday that it’s borrowing $1 billion from its bank line of credit to shore up its coronavirus-shaken finances.

The agency is collecting less fare money, so the borrowing is necessary to keep trains and buses running, said Metropolitan Transportation Authority chairman Pat Foye.

“These emergency funds, which will be drawn down on March 20, are critical as the agency encounters a fiscal cliff due to significant, sustained revenue losses and increased expenses resulting from the coronavirus pandemic,” Foye said.

“Let’s be clear: These funds, while important in providing liquidity, are not a comprehensive or permanent solution,” Foye wrote. “This is a national disaster that requires a national response.”

The MTA’s plan to tap its line of credit comes a day after Foye sent a letter to members of Congress requesting a $4 billion aid package in order to balance their budgets, which have been thrown into a tizzy as mass transit ridership enters a free fall.

Subway ridership was down by 60% Monday, while bus ridership fell by 49%, Foye said in the letter. That means the city’s transit systems are providing more than 4 million fewer trips a day than March 2019.

Fares amount to roughly 38% of the MTA’s $16.9 billion in annual revenue. Bridge and tunnel tolls bring in another 13%.

Foye said the MTA “cannot afford to wait” for the $4 billion in federal aid, and has projected the crisis will crater the the agency’s ridership for the next six months.

He said MTA’s work “crucially involves moving the medical professionals, first responders, transportation workers, child care workers and essential personnel on the front lines protecting New York.”

The MTA had $42.9 billion in debt as of December. It generally uses the money to invest in infrastructure, such as new subway cars, train stations, and improving accessibility under the Americans with Disabilities Act.