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M.T.A. Postpones Fare Increase as It Tries to Lure Back Riders

The transit agency cited the financial hardship of many of its customers as it tries to bring back subway, bus and commuter rail ridership.

The Metropolitan Transportation Authority has raised fares on a regular cycle for more than a decade. Credit...Karsten Moran for The New York Times

The transit agency that runs New York City’s subway, buses and two commuter rails will hold off on a fare increase for the rest of the year as it struggles to lure back riders.

After raising fares on a regular cycle, the agency, the Metropolitan Transportation Authority, will not move on what had been a proposed 4 percent increase, Patrick J. Foye, the chairman and chief executive of the M.T.A., said Tuesday.

“It’s the board’s unanimous recognition that many of our customers are suffering the aftereffects of the pandemic,” Mr. Foye said in an interview, citing workers who have suffered job losses and salary reductions, and businesses that are facing financial hardship.

The agency’s move comes as the M.T.A., which had faced financial calamity as riders disappeared, has been buoyed by an infusion of federal aid.

The M.T.A. has also been under intense pressure from rider advocates and elected city and state officials who say that now is not the time to raise fares when many of the commuters sustaining the subway and buses are essential workers whose incomes are lower than many of the office workers who are still able to work remotely.

“A premature fare hike would be highly inequitable, falling overwhelmingly on low-income and essential workers,” said Danny Pearlstein, a spokesman for Riders Alliance, a grass-roots advocacy group.

The agency also decided against raising fares when it is trying to bring back more riders to the largest transit system in North America, Mr. Foye said.

Transit ridership and fare revenue plunged at the height of the pandemic as commuters worked from home, businesses closed up and tourists stayed away. Since then, subway and bus ridership has picked up, but it remains half of the prepandemic peak of more than seven million daily weekday riders.

Mr. Foye said the board of the M.T.A. will address the fare issue at its monthly meeting on Wednesday, where the agency will unveil an update on its 2021 financial plan. Mr. Foye said he would join the rest of the board in directing the agency’s chief financial officer to remove the anticipated 2021 revenue from a fare increase — about $17 million — from the financial plan.

The M.T.A. relies on fare revenue to operate its vast system more so than most other transit agencies.

The agency had already postponed the fare increase in January until later this year after its finances were stabilized by an expected $14.5 billion in federal pandemic aid.

Transit officials said they have received $4 billion of that federal pandemic aid so far, and expect to receive the remaining $10.5 billion through a multiyear reimbursement process that will cover its operating losses.

Still, at least one M.T.A. board member on Monday left open the possibility of a fare increase in the near future. “There may be a fare hike in 2022,” said Larry Schwartz, the chairman of the M.T.A. finance committee and a close adviser to Gov. Andrew M. Cuomo, who effectively controls the transit agency.

The transit system will play a crucial role in New York’s recovery as many offices and public schools move to fully reopen after Labor Day. But fears of an uptick in subway crime have scared away some riders, and a staffing shortage at the agency has forced thousands of subway trips to be canceled and resulted in longer waits and commutes.

Many subway and bus riders welcomed any delay in a fare increase, saying they could not afford one.

John Louis, 85, who was riding a bus in Manhattan, said fares were already too high. “What can I do?” said Mr. Louis, who does not have a car. “It’s not fair for a lot of people.”

Still, Andrew Rein, the president of the Citizens Budget Commission, a watchdog group, said that while the first delay in a fare increase was reasonable given the pandemic, any further delays would only put more financial stress on the agency. Even before the pandemic, the agency faced budget shortfalls because its operating costs exceed its revenue.

Though the transit agency is expected to cover its costs for the next couple of years with federal pandemic aid as well as an additional $2.9 billion federal loan, it could face a $2.5 billion budget gap as soon as 2025, Mr. Rein said.

“It would be appropriate to raise the fares now because the M.T.A.’s long-term finances are in a precarious position,” Mr. Rein said, noting that the city has a fare subsidy program to help low-income riders.

The transit agency, which has a $17.6 billion budget for 2021, has steadily raised fares every other year since 2009 to help balance its budget.

Before the pandemic, a little over half of the agency’s revenue came from fares for the subway, buses and commuter rails, and tolls for bridges and tunnels controlled by the M.T.A. — a higher share than for many other transit systems.

For instance, in 2020, fares raised nearly $6.5 billion, or about 38 percent of the agency’s revenue, according to transit officials. Tolls accounted for another $2.1 billion, or about 12 percent of the revenue.

The transit agency pushed through an increase in tolls earlier this year, but delayed a 4 percent increase in fares. Transit officials had laid out various options for a fare increase last year, including raising the base fare from $2.75 to $2.85; increasing the surcharge for buying a new MetroCard from $1 to $3; and eliminating seven- and 30-day unlimited passes or raising their prices.

On commuter rails, the possibilities ranged from raising the price for single-ride and 10-trip tickets by more than 4 percent to overhauling ticket prices entirely to reflect where trips began and end.

Luis Lorenzi Ramos, 47, a subway rider from the Bronx, said that a fare increase would have just motivated him to use his scooter more. After past fare increases, he said, he did not see any substantial improvement in train service or station quality. “It’ll be more of me riding this scooter and less the subway,” he said.

Breaking the cycle of fare increases was “the right move for riders” right now, and fare subsidies for low-income riders should also be significantly expanded, said Lisa Daglian, the executive director of the Permanent Citizens Advisory Committee to the M.T.A., a watchdog group. “It’s been an incredibly difficult year and we’re not out of the woods yet.”

In addition, Ms. Daglian said she saw an opportunity for the transit agency to reassess how it charges fares to better reflect changing commuting patterns post-pandemic as more people work from home at least part of the week. For instance, she said, the agency could offer more discounts for rail commuters and a 20-ticket pack that would be cheaper and allow more flexibility than a monthly pass.

“If we’re going to open the door to fare policy changes,” she said, “let’s break open the door and find the most equitable policies for all riders.”

Winnie Hu is a reporter on the Metro desk, focusing on transportation and infrastructure stories. She has also covered education, politics in City Hall and Albany, and the Bronx and upstate New York since joining The Times in 1999. More about Winnie Hu

A version of this article appears in print on  , Section A, Page 16 of the New York edition with the headline: M.T.A. Postpones Planned Fare Increase as It Tries to Lure Back Riders. Order Reprints | Today’s Paper | Subscribe

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