The three governors in the New York tri-state area have finally come to terms on the suballocations of federal emergency relief funding Congress had apportioned the region to mitigate transit-system losses from COVID-19.
After negotiations, the states agreed that under the regional allocation, or “whack-up,” New York will receive about $10.85 billion of the funding, with New Jersey and Connecticut in line for $2.66 billion and $474 million, respectively.
Gov. Kathy Hochul of New York and her respective New Jersey and Connecticut peers, Phil Murphy and Ned Lamont, made the announcement Tuesday.
“With this agreement, we ensure a reliable and safe commute as workers return to their offices,” Murphy said.
A continued impasse may have forced the state-run Metropolitan Transportation Authority, which operates New York City’s subway and bus system, to borrow $4 billion in
The funding, through the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act, recognized the pandemic’s effect on the tri-state region.
As the pandemic peaked last year and triggered an economic shutdown, New York subway and bus ridership plummeted by up to 90%. According to MTA data, subway ridership last Friday was 3.3 million, or down 45% from the pre-pandemic equivalent day.
The agreement will enable the MTA to file its application for a $2.2 billion competitive or discretionary grant for coronavirus support.
“Part of that application process requires that regional allocations and sub-regional allocations must be resolved,” MTA finance manager Patrick McCoy said last month.
Despite requests from Murphy and interim MTA Chairman Janno Lieber, The Federal Transit Administration would not mediate the dispute.
Meanwhile, mass transit stands to receive more through the $1.2 trillion infrastructure bill that is headed to President Biden’s desk. It includes $39 billion for transit systems, with Lieber projecting the MTA will receive $10 billion.
“Federal spending can boost state and local transportation improvement efforts already underway, or potentially spur new initiatives,” Fitch Ratings said in a commentary.
According to Lamont, Connecticut will receive $5.38 billion over five years for highways, bridges, transportation, water infrastructure and other projects. Work will include two-way rail service on the Waterbury branch of the Metro-North Railroad’s New Haven line.
Connecticut’s Department of Transportation owns Metro-North service in that state. The railroad itself is an MTA unit.
New Jersey is in store for roughly $12.3 billion for its roads, bridges and transit, and billions for the long-delayed Gateway Tunnel under the Hudson River to Manhattan.
