Overview
- Gov. Kathy Hochul said she cannot back a proposal that removes revenue from a transit system dependent on bus and subway fares.
- The city’s Independent Budget Office pegs fare-free local buses at more than $652 million per year, a recurring cost that would need stable funding.
- MTA leadership remains skeptical and has pointed to the need for formal study after a limited one-route-per-borough pilot in 2023.
- Mayor-elect Zohran Mamdani is pressing ahead and has floated a flat 2% tax on incomes above $1 million, a change that would require Albany’s approval.
- Top legislative Democrats have not ruled out tax increases, while Hochul has signaled a preference for targeted fare relief for low-income riders.