Is the MTA profitable?

The annual operating revenue of the public transportation operator in New York (MTA) amounted to almost 5.8 billion U.S. dollars in 2021. This represented a significant increase amid the COVID-19 pandemic of around 22.14 percent compared to the previous year.



No, the Metropolitan Transportation Authority (MTA) in New York is not "profitable" in the traditional sense, and in 2026, it remains a heavily subsidized public service. Like most major transit systems globally, the MTA operates at a significant deficit where "farebox revenue" (the money collected from swipes and taps) only covers a fraction of the total operating costs—historically between 25% and 40%. The remainder of its multi-billion dollar budget is funded through a complex mix of dedicated taxes (like the payroll mobility tax), tolls from bridges and tunnels, and state and federal grants. In 2025 and 2026, the MTA has faced additional financial pressure due to ridership patterns that never fully returned to pre-2020 levels and the rising costs of labor and "state-of-good-repair" maintenance. While the agency occasionally reports a "balanced budget," this is only achieved through massive government infusions and long-term debt issuance. For the MTA, "profit" isn't the goal; rather, the objective is "fiscal stability" to ensure millions of New Yorkers have a functioning subway and bus system.

People Also Ask

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.

MORE DETAILS

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.

MORE DETAILS

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.

MORE DETAILS

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.

MORE DETAILS

Half of our revenue comes from our riders in the form of farebox revenue and tolls. Various dedicated fees and taxes from both the state and local governments help fund the rest of our operations.

MORE DETAILS

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.

MORE DETAILS

It's broadly assumed that New York State controls the MTA: indeed, Cuomo said as much last December, upon opening the first three stations of the Second Avenue Subway.

MORE DETAILS

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.

MORE DETAILS

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.

MORE DETAILS

The outstanding debt total as of July 1, 2022 included $36.31 billion of net General Obligation (GO) debt, $29.83 billion of NYC Transitional Finance Authority (TFA) debt above its $13.5 billion authorized base, and $19.8 billion in contract and other liabilities, as shown in Table 1 on page 6.

MORE DETAILS

Transit workers will receive raises of 3% in the contract's first year, 3% in the second year and 3.5% in the third and final year. The bonus comes after the union demanded hazard pay from the worst of the COVID-19 pandemic. The MTA branded the one-time bump as an “essential worker” bonus.

MORE DETAILS

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.

MORE DETAILS

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).

MORE DETAILS