Despite ongoing federal uncertainties, the Metropolitan Transportation Authority (MTA) has taken strides in advancing both its 2020-2024 and 2025-2029 capital programs, according to a report released today by New York State Comptroller Thomas P. DiNapoli.

As of April 2026, the Authority has committed more than $38 billion from its $55.4 billion 2020-2024 program, reflecting both more financing certainty and accelerated project activity.

“The MTA has made progress towards implementing the largest capital program in its history, work that is critical to providing the kind of frequent and reliable service that brings riders back,” DiNapoli said. “While the outlook for capital funding and debt levels has improved this year, federal uncertainties remain. The MTA is counting on $14 billion in federal funds for its current capital program. If that money becomes entangled in federal politics or delayed, it could force the MTA into making hard choices between increasing its debt load or deferring critical improvements needed to keep the system safe and functional.”

Dedicated lockbox resources, including congestion pricing revenues, expanded Payroll Mobility Tax (PMT) funds, and other dedicated lockbox resources, continue to provide predictable funding that helps protect transit operations while supporting long-term capital investment and shielding the operating budget from the impact of new debt.

When debts are paid out of the operating budget, it can disrupt spending on day-to-day operating needs. While the lockbox plays a vital role, the MTA still expects to issue $18 billion more in debt funded by its operating budget to help pay for the 2020-2024 and the 2025-2029 programs.

The MTA has a goal of keeping its debt service – the combined principal and interest payments on borrowing – to about 15% of its operating budget, which is manageable, particularly given the scale of assets the MTA oversees.

MTA Debt Highlights

• Debt backed by the MTA’s operating budget dropped from 37% in the 2015-2019 capital program to 19% in the 2025-2029 capital program. In 2025, outstanding operating budget debt was $800 million lower than in 2024.
• Lockbox resources are projected to contribute $31.5 billion to the 2025-2029 program, including $7.5 billion in pay-as-you-go (Paygo) commitments, avoiding an estimated $500 million in annual debt service for 30 years and generating more than $7 billion in long-term savings.
• The MTA projects operating-budget-funded debt service at 13.5% of revenues in 2026, within its established 15% target range, but rising to 15.8% in 2029. Without the lockbox, the MTA’s debt burden would reach an estimated 18.5% in 2028 and 24.9% in 2033, highlighting its importance in stabilizing MTA finances.

Capital Commitments

Although capital programs span five years on paper, commitments generally take longer and delays can increase the risks of disinvestment, rising costs and deterioration of assets.

• As of April 2, 2026, the MTA committed $38.5 billion (70%) of the 2020-2024 program, leaving $16.9 billion remaining. Commitments have accelerated recently, however, with another $6 billion committed since June 2025.
• As of April 2, 2026, $19.4 billion in the MTA’s capital programs from 2010 through 2024 remains to be committed. The MTA has also committed $7.5 billion of its $68.4 billion 2025-2029 capital program, the largest in its history.
• The capital lockbox dedicated to the 2025-2029 capital program will receive a dedicated portion of expanded PMT revenue, which is expected to provide $31.5 billion.

While the MTA’s debt profile is stabilizing, uncertainty remains without assurances that the expected $14 billion in federal funds will materialize. The MTA must also generate $3 billion in savings to fully fund the 2025-2029 capital program, but has not fully detailed how the $4.2 billion in capital savings for past programs were achieved. DiNapoli’s report calls on the MTA to provide greater transparency to help the public understand these efforts.

If federal formula funds or projected savings fall short, the MTA may face unpleasant choices between increasing the debt burden on its operating budget or delaying needed investments in the system, choices that could affect service reliability and rider confidence. Whatever choice the MTA makes, DiNapoli’s report warns against anything that would interfere with the return of paying riders, who remain the key to its continued recovery.

DiNapoli also emphasized that continued transparency, careful debt structuring and ongoing federal support will be essential to maintaining the MTA’s progress. With ridership strengthening and critical projects moving forward, including accessibility upgrades, rolling stock replacements, resiliency improvements and system modernization, the MTA needs to stay on track to deliver significant lasting improvements for millions of New Yorkers.

Report

Annual Update: Metropolitan Transportation Authority's Debt Profile