Budget updates from PANYNJ, WMATA

The Port Authority of New York and New Jersey (PANYNJ) has approved its 2025 budget while the Washington Metropolitan Area Transit Authority’s (WMATA) proposed budget for Fiscal Year (FY) 2026 optimizes service to meet growing ridership demand without any major funding increases.

PANYNJ 

PANYNJ’s $9.4 billion 2025 budget includes $4.1 billion in operating expenses, $3.6 billion in capital expenses and $1.7 billion for debt service and deferred expenses.   

The agency’s $3.6 billion capital budget will target spending more than $750 million higher than 2024 capital spending as the agency advances several major capital projects such as the delivery of 72 new PATH railcars and undertakes preliminary planning and substantial work to kick off its next set of priority projects, including the multi-phase replacement of the Midtown Bus Terminal.  

The capital spending will fund: 

• The project to add pedestrian access from underserved Newark and Elizabeth, N.J., communities to the Newark Airport Rail Link station, expanding mass transit and airport access for people in those communities seeking faster options to employment at the airport or in New York City via New Jersey Transit or Amtrak.    
• The start of early works construction for a new Midtown Bus Terminal, such as the platforms over the Lincoln Tunnel’s Dyer Avenue ramps and the start of work of a new bus staging and storage facility that will serve as the interim main terminal while the existing bus terminal is demolished. PANYNJ notes the bus terminal replacement project will be constructed in phases to allow for the continued operation of the main terminal building and minimal disruptions to service for bus customers.     
• Track infrastructure replacement, station rehabilitations, signal and equipment upgrades and new rail cars through the 2-year $430 million PATH Forward program to improve service and reliability of the PATH commuter rail.  
• The full implementation of PATH’s new tap-and-go fare payment system by the end of 2025, including replacements of existing SmartLink/MetroCard readers with new TAPP readers at all PATH stations and the introduction of a new TAPP card that will enable carryovers of existing SmartLink PATH fare discounts.    

“For over a century, the Port Authority has been a pillar of imagination and innovation, shaping infrastructure that endures and evolves with this dynamic region,” said PANYNJ Chairman Kevin O’Toole. “This budget continues our effort to set a bold new standard for that work. We’re investing significant money to keep the pedal to the metal on what has become the most ambitious capital program in our 103-year history, overhauling, modernizing and refreshing this region’s critical infrastructure as we chart a course to keep our region moving into an even stronger future.”  

PANYNJ notes that while 65 percent of projected 2025 operating revenues will come from non-toll and non-fare sources, revenue changes from a package of toll and fare adjustments have been approved for implementation in 2025. The agency says the adjustments are necessary:   

• To address the negative impacts of the COVID-19 pandemic on revenues (loss of $3 billion over the 24-month period of March 2020 through March 2022) and resultant continuing inflationary impacts on operating and capital costs 
• To continue to invest in the ambitious capital agenda for the agency’s tunnel, bridge, terminal and PATH facilities as laid out in the 2017-2026 capital plan.    

PANYNJ notes a new reduced fare program has been approved for PATH riders with qualifying disabilities. Passengers who qualify under this program would pay the same reduced fare rate as a senior citizen, or $1.50 per ride effective once the new TAPP fare system is fully operational, which is estimated for summer 2025.   

Pursuant to the September 2019 PANYNJ Board action on PATH fares, the agency notes an automatic inflation-based fare adjustment was triggered because the cumulative increase of CPI was greater than $0.25.  According to PANYNJ, the board-mandated increase of the single ride fare from $2.75 to $3 will be effective on Jan. 12, 2025.  All existing multi-trip and discounted fares will be maintained with appropriate adjustment. The single ride fare was last adjusted in October 2014.  

PANYNJ says it continues to advance its commitment to achieve net-zero greenhouse gas emissions by 2050 through initiatives to electrify the agency’s vehicular fleet, prioritize decarbonization of legacy infrastructure, and explore greener technologies and business practices.  

The agency has also allocated than $1 billion in the 2025 budget to enhance infrastructure safety and security, including new technology and initiatives to address evolving cybersecurity threats.  PANYNJ has added 109 new cadets to its police department. 

WMATA 

In its FY 26 budget, WMATA is calling for longer weekend hours, targeting service increases on the Red, Silver and Yellow lines and implementing its revised Better Bus Network in summer 2025. 

“This budget helps serve our customers where it is needed most,” said WMATA General Manager and CEO Randy Clarke. “We are proposing several efficiencies that save us money to pay for this additional service. While we are able to fund the budget this year, [WMATA] will need a dedicated source of funding to keep the system viable in the decades to come.” 

The agency notes Metrobus service changes have already been approved by the board as part of the 2025 Better Bus Network Redesign process. Proposed Metrorail changes include:  

• Extend half of Yellow Line trains to Greenbelt: Operate the Yellow Line in two patterns at all times, with half of trains operating between Huntington and Greenbelt and half operating between Huntington and Mt Vernon Square. 
• Split Silver Line service between Downtown Largo and New Carrollton: Operate the Silver Line in two service patterns at all times, with half of trains operating between Ashburn and Downtown Largo and half operating between Ashburn and New Carrollton.   
• Silver Line additional peak service: Operate two additional Silver Line trains to provide capacity in the weekday peak hour only. Trains would operate from Wiehle-Reston East to Stadium-Armory in the morning and from Stadium-Armory to Wiehle-Reston East in the afternoon. 
• Red Line additional peak service: Operate Red Line trains up to every four minutes from every five minutes during the busiest portions of weekday rush periods to provide additional capacity in both directions of travel. Red Line trains would continue to operate every five minutes during the remainder of peak service. 
• Increase weekend hours of operation: Open the rail system one hour earlier on weekend mornings, opening at 6:00 a.m. on Saturdays and Sundays. Close the rail system one hour later during weekend late nights, closing at 2:00 a.m. on Fridays and Saturdays. 

According to the agency, the FY 26 proposed budget does not include an increase to fares but the way riders can pay for fares will be expanding, as WMATA is preparing to introduce an open payment fare system to Metrorail, Metrobus and parking facilities during the next calendar year. The agency says open payment would allow customers to have the option to use their contactless credit/debit card (e.g., Visa, Mastercard, American Express, Discover), mobile wallet or linked smartwatch for fare payment without the need to use a SmarTrip card. WMATA is planning to implement open payment to make the payment experience more seamless and incentivizing adoption. As proposed, Metrorail will be first to receive open payment in May of 2025, followed by Metrobus by summer 2025 and WMATA parking facilities in late fall 2025. 

The proposed FY 26 capital budget of $2.4 billion and six-year capital improvement program of $12.5 billion (both including revenue loss and debt service) include investment in ongoing projects, prioritized system preservation and renewal needs and investments to provide safe and efficient service delivery informed by asset management and reliability plans. 

WMATA notes major capital program investments to further improve service and customer experience include: 

• Railcars and rail facilities: Major vehicle investments include the 8000-series railcar acquisition program. Major facilities and systems investments include rail vehicle scheduled maintenance program (SMP) facility improvements and railyard state of good repair. 
• Rail systems: Major investments include train control room rehabilitation, track circuit cable testing and replacement, switch machine replacement, rail power system rehabilitation, radio infrastructure replacement and fiber installation. 
• Track and structures rehabilitation: Major investments include track rehabilitation and maintenance, tunnel ventilation demonstration and water leak mitigation demonstration on the Red Line and bridge and aerial structural rehabilitation. 
• Station and passenger facilities: Major investments include standpipe systems and tunnel emergency egress, parking garage and surface lot rehabilitation, station entrance canopies and elevator rehabilitations, digital signage and wayfinding, lighting and fare payment modernization. 
• Bus, bus facilities and paratransit: Major vehicle investments include bus acquisition and rehabilitation and paratransit vehicle purchases, including zero-emission bus acquisition. Major facilities investments include Northern and Bladensburg garage replacements and electrification, electrification of the Cinder Bed bus garage, bus shelter replacement, customer information electronic displays, bus priority program. 
• Operations and business support: A modern training facility, computing infrastructure state of good repair, enterprise resource planning system replacement, asset management system upgrade, service vehicle replacement and environmental compliance. 

Between now and February, WMATA staff and the WMATA Board of Directors will finalize a budget proposal for the public’s input and comments. The WMATA Board of Directors will vote on the proposed budget in 2025 and service changes would go into effect in late June/early July.