Governor Kathy Hochul has signed legislation to fully fund the Metropolitan Transportation Authority’s (MTA) 68.4 billion USD Capital Plan for 2025–2029.
The funding forms part of New York State’s FY 2026 Enacted Budget and supports a wide-ranging package of infrastructure and service upgrades for the region’s transit networks.
The plan includes major investments in the Long Island Rail Road (LIRR), Metro-North Railroad, and the New York City Subway, as well as the launch of new projects such as the Interborough Express (IBX), a proposed transit link between Brooklyn and Queens.
Key areas of focus include the modernisation of outdated signalling systems, the procurement of new rolling stock, and structural improvements to bridges and tunnels. The MTA will also continue efforts to improve station accessibility, with upgrades planned for more than 65 subway and rail locations.
The funding package supports:
- The start of construction on the Interborough Express
- Rehabilitation of the Grand Central Artery used by Metro-North services
- Installation of modern fare gates at more than 150 stations
- Expansion of the zero-emission bus fleet
- Investment in station safety and system resilience
- Upgrades to power and maintenance facilities
Approximately 6 billion USD will be directed to each of the MTA’s two commuter rail systems. Metro-North will see investment in new trains, platform repairs, and climate resilience. The LIRR will receive funds for new railcars, substation renewals, and additional accessibility improvements.
An additional 800 million USD has been allocated for regional transit initiatives, including rail junction improvements and studies on network expansion to underserved areas.
In terms of funding sources, the plan includes contributions from state, local, and federal governments, along with MTA revenues.
The budget also redirects up to 1.2 billion USD previously allocated to the Penn Station redevelopment project. This funding will instead support initiatives such as the Interborough Express, fare evasion prevention measures, and safety projects.
The City of New York will be required to contribute 3 billion USD to the capital plan, and the MTA is expected to achieve an equivalent amount in operational efficiencies. An additional 3 billion USD in capital support will be provided by the State.
MTA Chair and CEO Janno Lieber said:The Governor and legislature have been great supporters of MTA riders and understand the importance of mass transit to New York’s economy. An extraordinary effort went into identifying what needs to be done to maintain the $1.5 trillion asset that is our region’s transportation network. The women and men of the MTA look forward to getting to work on important capital projects that deliver on the Governor’s vision and ensure that New Yorkers keep moving for decades to come.
The 2025–2029 Capital Plan aims to support reliability, accessibility and service coverage for millions of daily riders while responding to demographic shifts, infrastructure ageing, and climate resilience challenges.
