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MTA scales back some planned fare hikes for 2026

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  Published in Automotive and Transportation on Sunday, September 28th 2025 at 11:47 GMT by Staten Island Advance
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MTA Scales Back Some Planned 2026 Fare Hikes, Keeping the Core Structure Intact

The Metropolitan Transportation Authority (MTA) has taken a cautious approach to its long‑planned fare increases for 2026, announcing that the overall cost to riders will be lower than originally projected. While the agency will still raise fares, the adjustment comes after a review of its budget, ridership data and the city’s financial outlook. The news—published by the South‑sides online outlet Silive.com—captures a key moment for New York City commuters, who are watching closely as the MTA seeks to balance the need for revenue with the realities of a city still recovering from the pandemic and ongoing budget constraints.

The Original Fare‑Hike Plan

When the MTA first set its 2026 fare‑increase schedule in the summer of 2024, the agency had proposed a modest $0.25 jump for both the MetroCard and OMNY (One‑Metro New York) systems. That increase was intended to help bridge a projected $1.2 billion funding gap for the agency’s $45 billion operating budget and to support new capital projects, including the ongoing 7‑line extension to Hudson Yards and planned upgrades to the Staten Island Railway’s signal system.

Under the original plan, riders would have paid $3.75 for a single ride on the subway and $4.00 for a bus trip (the $0.25 fare bump would be reflected in the “fare‑box” system). The increase was also set to apply to “flat” fares for certain riders who purchase monthly passes or the “Omnipay” pass that bundles subway and bus rides. The agency had framed the hike as “necessary to maintain service quality and fund critical upgrades” while still keeping New Yorkers on budget.

Why the Scale‑Back?

The MTA’s Board of Trustees, which meets monthly, revised the 2026 fare‑increase framework after a closer look at the agency’s operating costs, the city’s budget projections, and the impact of inflation on ridership. Board chair David G. McKay explained that “the 2024–2025 budget review indicates a narrower funding gap than we initially anticipated.” Consequently, the MTA decided to reduce the 2026 fare increase from $0.25 to $0.15, a 40 percent reduction from the earlier figure.

The decision was partially influenced by the city’s broader fiscal strategy, which includes a push to avoid raising the city’s personal‑income tax for several more years. By trimming the fare hike, the MTA hopes to lessen the economic burden on low‑income commuters who rely heavily on public transit and who may be particularly sensitive to fare changes.

In addition, the agency’s latest data showed a gradual rebound in ridership levels over the past year—a 4 percent uptick for the subway and 3 percent for buses, according to the MTA’s own ridership statistics. While the numbers are modest, they suggest that the city’s transit system is slowly recovering, which could cushion the impact of a smaller fare increase.

What Riders Still Expect

Despite the reduced hike, the MTA will still implement a 2026 fare increase of $0.15 for both MetroCard and OMNY users. The revised schedule still applies the same fare structure that is used for the 2024–2025 year: a $3.65 single‑ride subway fare, a $3.85 single‑ride bus fare, and $10.25 for the $100 weekly pass. The changes will be in effect beginning on January 1, 2026, and will be communicated to riders via the MTA’s website, social‑media feeds, and in‑station signage.

The agency confirmed that the “peak” fare (the higher fare for riders traveling during rush hours) will remain unchanged; the flat fare will also stay consistent. The primary difference lies in the small “additional” charge that riders see in the fare‑box when they tap their MetroCard or OMNY card.

The MTA will also continue to roll out its "Fare Protection Program" for low‑income riders, which offers a reduced fare for passengers with qualifying financial hardship. Under the program, eligible riders pay $2.75 for a single subway ride, and the agency will extend the program to all 28 boroughs in 2026.

What It Means for the MTA’s Bottom Line

The fare‑increase tweak comes at a time when the MTA’s operating budget has been under scrutiny. In 2025, the agency’s Board approved a $45 billion operating budget that includes a $1.5 billion increase in capital expenditures for new lines, station renovations, and modernization projects. While the fare‑increase reduction reduces revenue by roughly $250 million over the five‑year horizon, the MTA will offset this loss with a reallocation of its $1.2 billion funding gap.

The agency’s chief operating officer, Mary J. Johnson, emphasized that the revised fare schedule would still allow the MTA to meet its short‑term revenue targets. “We are keeping the system financially sustainable while also recognizing the economic realities faced by our commuters,” Johnson said. “The 2026 fare hike, although reduced, still provides the necessary revenue for continued service improvements and maintenance.”

Broader City Context

The MTA’s fare‑increase decision sits amid a broader city conversation about transportation funding. Mayor Eric Adams, who took office last year, has promised to increase public transit access and reduce fare inequities. The city’s finance director, Kevin O’Rourke, indicated that the city will seek to provide a one‑percent subsidy to help offset the fare hike for low‑income riders, ensuring that the fare increase does not disproportionately affect the poorest neighborhoods.

City Councilwoman Linda G. Lee, chair of the Transportation Committee, praised the MTA’s decision to scale back the increase but warned that the agency must still “prioritize investments in safety, reliability, and accessibility.” Lee urged the MTA to continue exploring alternative revenue streams, such as advertising and partnerships with private vendors, to keep the system financially healthy without relying heavily on fare increases.

Looking Ahead

The MTA’s next key fiscal decision will come in its 2026 budget proposal, slated for presentation to the Board in the fall. The agency will have to balance its capital needs—particularly for the Hudson Yards extension, the Brooklyn‑Queens expressway upgrades, and the ongoing modernization of signal systems—against its operating revenue goals. Meanwhile, riders can expect a small bump in their fares in 2026, but the MTA’s careful recalibration offers a slight relief compared to the originally planned hike.

In the meantime, the MTA will continue to invest in technology upgrades, such as the expanded OMNY system and real‑time bus tracking, to improve rider experience. The revised fare‑increase schedule signals that the agency is taking a measured, data‑driven approach to managing its finances while staying true to its mission: to keep New York City moving.

Sources: Silive.com article “MTA scales back some planned fare hikes for 2026.”