Does the MTA make a profit?

Virtually every public transportation system in the world loses money. Public transportation systems aren't for-profit businesses, they are public agencies, run by the government, intended to provide a service to the general public.



No, the Metropolitan Transportation Authority (MTA) in New York City does not make a profit and is currently operating under a "balanced budget" through 2026 that relies heavily on government subsidies. While it has a massive $21.3 billion operating budget—larger than some U.S. states—the farebox and toll revenue only cover a portion of costs. In 2026, the agency faces projected deficits of roughly $345 million for 2027, growing each year thereafter. To stay afloat, the MTA utilizes revenue from the Central Business District Tolling Program (congestion pricing) and state-level payroll taxes. The financial outlook remains "precarious" due to fare evasion (which reached nearly 50% on some bus lines in 2025) and the end of one-time federal COVID-19 relief funds, necessitating constant requests for additional state and federal capital investments.

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About the report on MTA Fare and Toll Evasion Losses to the MTA's operating budget are staggering, with nearly $700 million in revenue not collected in 2022 alone. This includes $315 million lost in bus fares, $285 million in subway fares, $46 million in bridge and tunnel tolls, and $44 million in railroad fares.

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The report also found that the MTA lost $690 million to fare evasion in 2022. Joana Flores, an MTA spokesperson, said the AI system doesn't flag fare evaders to New York police, but she declined to comment on whether that policy could change.

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This daily revenue is from the following sources: * US$19.8 million from dedicated taxes, local taxes and state taxes. * US$17.5 million from passenger ticket sales for public transport use. * US$ 5.5 million from bridge and tunnel tolls.

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The largest share of MTA revenue — $7.222 billion — comes from dedicated taxes and subsidies the Authority receives from the cities and states that we serve. Another $6.870 billion comes from fares and tolls. Federal COVID-related aid, which the MTA received in 2020 and 2021, adds up to $2.877 billion.

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Rising debt: The only way out By charging passengers less than the actual cost of the service, the MTA is subsidizing countless industries that rely on workers who are not able to live closer to their jobs. This is by no means unique to New York City, as most public mass-transit systems around the world make no profit.

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Key Findings: MTA's outstanding long-term debt climbed from $11.4 billion in 2000 to $42.3 billion in 2022 and will reach $56.7 billion by 2028.

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New York MTA's multi-decade state monopoly model is no longer producing good transit service. New York City's transit has been in a perpetual “summer of hell.” Media outlets coined this phrase in 2017 to describe the state of different regional services, with their maintenance backlogs and decay.

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A variety of factors drive MTA's cost structure, including the age and size of the system, 24/7 operation, and the difficulty maintaining so many different — and older — models of train cars and other equipment, said MTA Communications Director Tim Minton.

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The current crisis: MTA is projecting a $2.6B annual funding gap in the near future. After debt restructuring and operating efficiencies are implemented, they still expect the gap to be $1.2B. The table below illustrates the 2019 actual and 2023 expected revenue.

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Of the estimated $690 million annual loss, buses accounted for the largest share with $315 million, subway evasion cost $285 million, about $46 million was due to drivers avoiding tolls and commuter rail evasion totaled $44 million, the report said.

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The subway is owned by the city of New York and leased to the New York Transit Authority. It is one of the oldest subway systems and one of the largest in the world, with about 472 stations in operation.

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The subway was affected by a lack of funds, signal slowdowns, and degrading infrastructure. The buses were also affected by a lack of funds, but individual routes had additional problems including low frequencies, slow speeds, and winding routes.

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The New York City Subway is a rapid transit system in the New York City boroughs of Manhattan, Brooklyn, Queens, and the Bronx. It is owned by the government of New York City and leased to the New York City Transit Authority, an affiliate agency of the state-run Metropolitan Transportation Authority (MTA).

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Over the past five years, 4,592 MTA injury cases have been resolved, forcing the Metropolitan Transportation Authority payouts of over $431 Million in MTA lawsuit settlements.

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The New York Police Department's Fiscal 2024 Preliminary Budget is $5.44 billion approximately $88.9 million less than its Fiscal 2023 Adopted Budget. The Department's budget makes up 5.3 percent of the City's total Fiscal 2024 budget and is the City's third largest agency in terms of funding.

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