How big is the MTA 2025–2029 capital plan?

$68.4 billion — the largest capital investment in MTA history, focused heavily on state-of-good-repair work across subways, buses, commuter rail, bridges and tunnels.

Where does the money come from?

The biggest new source is an increase in the payroll mobility tax for the New York City metro region, enacted in the 2025 state budget. The plan also relies on city and state contributions, federal funds, and bonding backed in part by congestion-pricing revenue.

What does the plan actually pay for?

About 1,500 new subway cars, Communications-Based Train Control signals on at least 75 miles of track, at least 60 more ADA-accessible stations, 45 replacement elevators, plus track, power and structural repairs.

Is the plan fully funded?

The state says yes after the budget deal, but transit-finance watchdogs warn that revenue from the payroll tax increase is uncertain and that the plan leans heavily on borrowing.

MTA's $68.4B Capital Plan Clears Albany

The Metropolitan Transportation Authority’s record $68.4 billion 2025–2029 capital plan cleared its final hurdle in Albany in June 2025, after a months-long budget fight over how to pay for it ended with a higher payroll tax on metro-area employers.

The Capital Program Review Board — the panel of state and city appointees that must sign off on every MTA capital plan — approved the resubmitted program, which the MTA Board had advanced once the 2025 New York State budget closed an initial multibillion-dollar funding gap. The authority calls it the largest capital investment in its history, weighted toward keeping the existing system from breaking down rather than expansion.

How it gets paid for

The plan had stalled in late 2024 because roughly a third of it was unfunded. The fix came in the state budget that Governor Kathy Hochul signed in May 2025: an increase in the payroll mobility tax (PMT) on employers in the 12-county MTA region, the single largest new revenue source backing the program.

The PMT increase, city and state contributions, federal formula and grant money, and bonding — including bonds backed by congestion-pricing revenue from the Manhattan tolling program launched in January 2025 — together make up the funding stack.

Hochul has said the plan is “fully funded,” but transit-finance analysts are more cautious. The Citizens Budget Commission and Albany watchdogs have warned that actual PMT collections are uncertain and that the program relies heavily on debt, leaving open questions about long-term affordability. The MTA, for its part, points to its Construction & Development arm reporting billions in savings against earlier cost estimates as evidence it can deliver.

What the money buys

Unlike the headline-grabbing extensions, most of the plan is unglamorous state-of-good-repair work — the track, signals, power substations and structures that keep trains running. The MTA’s published breakdown includes:

About 1,500 new subway cars to replace some of the oldest rolling stock in the fleet, improving reliability.
Communications-Based Train Control (CBTC) signaling on at least 75 miles of track, targeting the A, J, Z, N, Q, R, W and Rockaway S lines. When complete, roughly 40% of the subway would run on modern signals; CBTC-equipped lines already post 90%-plus on-time performance.
At least 60 additional ADA-accessible stations and 45 replacement elevators, continuing the accessibility commitments the MTA agreed to in legal settlements.
Major track, power and structural rehabilitation across the subway, plus investments in the Long Island Rail Road, Metro-North, and the bus fleet’s transition toward zero-emission vehicles.

Why it matters

The capital plan is the engine behind nearly every major transit project New Yorkers will see this decade — from signal upgrades that cut delays to the Second Avenue Subway Phase 2 extension into East Harlem and the Interborough Express light rail, both of which draw on capital-plan dollars. Its approval ends the immediate funding crisis but sets up a recurring fight: each future plan must again find tens of billions of dollars in a region where every new tax or toll is politically contested.

Verification

MTA Board approval of the resubmitted $68.4 billion 2025–2029 capital plan and PMT funding — mta.info press release
Plan contents: ~1,500 subway cars, 75+ miles of CBTC, 60+ ADA stations, 45 elevators — MTA proposed 2025–2029 Capital Plan
$254B state budget includes MTA capital funding via higher payroll mobility tax — amNewYork
Watchdog skepticism that the plan is “fully funded” — Streetsblog
Capital Program Review Board approval (June 2025) — Railway Age

Frequently Asked Questions

How big is the MTA 2025–2029 capital plan?: $68.4 billion — the largest capital investment in MTA history, focused heavily on state-of-good-repair work across subways, buses, commuter rail, bridges and tunnels.
Where does the money come from?: The biggest new source is an increase in the payroll mobility tax for the New York City metro region, enacted in the 2025 state budget. The plan also relies on city and state contributions, federal funds, and bonding backed in part by congestion-pricing revenue.
What does the plan actually pay for?: About 1,500 new subway cars, Communications-Based Train Control signals on at least 75 miles of track, at least 60 more ADA-accessible stations, 45 replacement elevators, plus track, power and structural repairs.
Is the plan fully funded?: The state says yes after the budget deal, but transit-finance watchdogs warn that revenue from the payroll tax increase is uncertain and that the plan leans heavily on borrowing.