OP-ED: MTA’s $7.7 billion Second Avenue Subway Phase 2 June 2024 updated

New York Gov. Kathy Hochul's announcement for instructing the Metropolitan Transportation Authority (MTA) to delay the previously announced June 30, 2024, start date for implementation of congestion pricing has other consequences, including its adverse impact on preserving $3.4 billion in Federal Transit Administration (FTA) funding / $4.3 billion local MTA matching share promised from congestion pricing as part of the FTA/MTA $7.7 billion Capital Investment Grant (CIG) Full Funding Grant Agreement (FFGA) to finance Second Avenue Subway Phase 2. It also adds $10.7 billion in missing congestion price tolling revenue that was supposed to fund $15 billion of the $51 billion MTA 2020 - 2024 Five Year Capital Plan.  

Was Gov. Hochul’s potential proposal to delay congestion pricing politically motivated? Is it an attempt to protect democrats running for the New York State Assembly, Senate and Congress within the MTA service area in the outer boroughs of New York City (NYC), Long Island and Hudson Valley from republican challengers using this issue against them?  Are the adverse consequences of preserving $3.4 billion in FTA funding approved in the $7.7 billion ($4.3 billion MTA local share pledged from congestion pricing) CIG FFGA approved last fall even worse? 

The 10,7 billion in missing congestion price tolling revenue that was supposed to fund $15 billion of the $51 billion MTA 2020 - 2024 Five Year Capital Plan included $3 billion to replace 1930s signals on the A and C Brooklyn subway lines, B, D. F and M Manhattan subway lines, $2 billion to bring dozens of subway stations into compliance with the Americans With Disability Act (ADA), including elevators, $2 billion for new subway cars, electric buses and charging stations and $3 billion for various capital improvements for both Long Island Rail Road and Metro-North Rail Road. Ironically, the MTA has already spent more than $500 million for installation, maintenance and operations of equipment and other expenses related to tolling for congestion pricing. 

In February 2024, the MTA said that due to ongoing litigation against implementation of congestion pricing, $15 billion in capital projects contained within the $51 billion 2020 - 2024 Five Year Capital Plan (including the $7.7 billion Second Avenue Subway) are now on hold.  This places $3.4 billion in the FTA  Second Avenue Subway Phase 2 FFGA to MTA in jeopardy of being lost.   

MTA previously accepted the terms and conditions within the FTA FFGA grant offer. This included a legal commitment that the $4.3 billion in local share was real, secure and in place. FTA caps its funding at $3.4 billion based upon the MTA's commitment of a secure $4.3 billion local share. MTA's local share was based upon implementation of congestion pricing. 

Month after month of continuing to place the project officially on hold and failure to proceed with advancing the project will eventually result in FTA de obligating its $3.4 billion in funding and closing out the grant.  MTA would lose $3.4 billion in discretionary federal funding.  Never in MTA history has the MTA lost FTA funding due to reneging on providing its legally required matching local share in any approved FTA grant. MTA Chairman Janno Lieber would be the first MTA Chairman to do so and have egg on his face. 

The U.S. Department of Transportation Office of Inspector General will be monitoring FTA to insure that the agency enforces all legal requirements, as contained in the FTA $7.7 billion Second Avenue Subway CIG FFGA to MTA. So too will the federal Office of Management and Budget, along with members of both the United States Senate and Congress who serve on the Appropriations or Transportation committees and take an interest in how FTA spends its funding. 

Transparency is required on the part of Gov. Kathy Hochul, MTA Chairman Janno Lieber, MTA Office of Capital Construction Jamie- Torres-Springer and Acting NYC Transit President Demetrius Crichlow when it comes to securing the required $4.3 billion MTA local share and any future promised cost savings.  The same holds true for my old colleagues at the FTA when it comes to enforcement for the approved $7.7 billion MTA CIG FFGA legal terms and conditions. Taxpayers, commuters, MTA Board members, elected officials and transit advocates should expect nothing less.