Discount fares, Chinese-built cars on track

Roughly 60,000 low-income riders who rely on the MBTA are set to receive half-priced tickets and passes, with the agency’s board approving the reduced fare plan long sought by Gov. Maura Healey.

The MBTA Board of Directors unanimously greenlighted the program during its monthly meeting yesterday, receiving loud applause from advocates who say the initiative will bring them major relief.

The program, set to launch later this spring or in the early summer, will provide half-priced tickets and passes to riders across the beleaguered network who are between the ages 26 and 64 and have an income under 200% of the federal poverty line.

The board also voted for a contract “reset” with Chinese firm CRRC that now calls for the final new Red and Orange Line trains to be delivered by the end of 2027.

Under the updated terms, the MBTA will pay as much as $148 million more to account for higherthan-expected costs linked to the COVID-19 pandemic and supply chain disruptions, swelling the total contract value to more than $1 billion.

The agency also agreed to forgive about $90 million in penalties that the manufacturer faces for delays so far. Another $37 million in damages would remain in place, but the updated contract would set incentives that could effectively dismiss those charges as well if CRRC meets new targets.

“I’m not totally comfortable with every aspect of this,” said board member and Quincy Mayor Thomas Koch, who voiced discomfort with the original bidding process. “But recognizing where we are, what the alternatives are, it’d be irresponsible of me to do anything but to vote for this to keep this moving.”

As for the discount fares, the cost to roll out the program, which will also apply to the RIDE paratransit service, is expected to be between $23—$26 million next fiscal year, an amount that is projected to grow to $52—$62 million by FY29.

MBTA Advisory Board Executive Director Brian Kane raised concerns around the implications of the program, tying it to the agency’s continued financial and transparency problems.