NYC transit system to hike fares on subway, buses in January

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New York City’s public transportation agency will delay a planned fare and toll increase to January, just as the bus, train and subway operator terminates its longstanding MetroCard for a tap-and-go payment system.

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The Metropolitan Transportation Authority will release details of the fare and toll hike on Wednesday at its monthly board meeting, including implementing it on Jan. 4 rather than before the end of 2025, according to MTA officials.

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The move comes as some riders recently reported snags where they believe they’ve been overcharged when using the OMNY payment system where you use your phone, credit card or OMNY card to enter a turnstile. The MTA said riders are only being charged for the trips they take. More than 75% of riders use the tap-and-go system.

MTA officials were planning on boosting fares and tolls in 2025 and 2027 to generate a 4% increase in revenue collections, but had yet to disclose the details of the hike. The MTA is proposing raising the base transit fare by 10-cents to $3, with no customer paying more than $36 for subway and local bus rides in a seven-day period, according to the MTA. Monthly and weekly commuter rail passes would increase by 4.4% and tolls on bridges and tunnels would go up by 7.5%.

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The increase helps the MTA cover its growing operating costs and are in line with the agency’s strategy of implementing smaller price changes every two years rather than dramatic jumps in fees, said Jai Patel, the MTA’s co-chief financial officer who will become its sole CFO on Aug. 1.

“Expenses grow at inflation and so do our revenues,” Patel said in a telephone interview. “So in order for us not to have large deficits, it is financially a smart thing for us to continue to do,” she said about raising fares and tolls.

The MTA is the biggest US transit agency, serving about six million weekday rides across its system. It’s a major contributor to the region’s economy, getting residents and visitors to work, school, appointments and entertainment. It’s also still working to bring more riders back to its subways, buses and trains, decrease fare evasion, improve reliability and make the system safer as the number of reported assaults are at record levels.

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The MTA will begin a public-hearing process where customers can voice their concerns. The board is set to vote on the fare and toll increase in the fall.

Commuter-rail customers will see some changes. The MTA plans to replace the round-trip ticket with a day pass that’s valid on the day of purchase until 4 a.m. Mobile users currently tap their tickets to activate after purchasing. Those tickets will now automatically activate and expire after four hours. Paper tickets will also expire after four hours.

Patel at Wednesday’s board meeting is set to present an update to the MTA’s multi-year financial plan, which details its yearly operating budgets. While the agency anticipates deficits in 2027 and 2028, they continue to narrow. Patel estimates a $345 million gap in 2027 and a $354 million shortfall the following year, which is a combined $198 million less than what the MTA was projecting a year ago for that timeframe. Still, the deficit is forecast to grow to $428 million in 2029, Patel said.

(Updates with comment from MTA on OMNY charges in third paragraph. A previous version of the story was corrected to remove reference of planned vote in second paragraph and seventh paragraph.)

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