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Gov. Kathy Hochul demands more federal transportation funds for MTA

Hochul, White House argue over who should pay to fix NYC transit system
Hochul, White House argue over who should pay to fix NYC transit system 03:21

Gov. Kathy Hochul sent a letter Monday to President Trump, Transportation Secretary Sean Duffy and other Republicans demanding a fair share of federal transportation funds for the MTA.

The price tag to fund the MTA stands at more than $68 billion.

Transportation secretary slams request as "outrageous"

"While the MTA carries 43 percent of the nation's mass transit riders, its share of federal transit formula funding is only 17 percent. We believe this represents a fundamental misalignment," Hochul wrote.

In a post on X, Duffy called the request "outrageous" in light of what he called "rampant crime that's scaring riders away."

"The federal government is not a blank check, and we will hold NYC leaders accountable for not keeping commuters safe," Duffy wrote.

The latest argument erupted as MTA Chair Janno Lieber was in Albany to drum up funding for his five-year capital plan.

He told CBS News New York political reporter Marcia Kramer he believes Hochul is right.

"The governor and the legislative leaders are totally right. New York is being shortchanged dramatically," he said.

Lieber also insists that the MTA is making headway in fighting crime, citing a 30% reduction in crime in the last year.

"Marcia, you and I both know we have a ways to go before our riders will truly feel safe, but it makes no sense to me that allegedly pro-police and pro-public safety administration seems to be intent on attacking the NYPD," he said.

New taxing options on the table to fund MTA

Lieber discussed various funding options with lawmakers, racing against an April 1 budget deadline.

A number of new taxing options are reportedly on the table, including an increase in the corporate tax and an increase in the mobility tax on employers in the MTA ridership area.

"We're early in the discussions, so yeah there will be numerous things floated as part of it and we'll see where it goes," Deputy Senate Majority Leader Michael Gianaris said.

A new statewide tax is also under consideration. The argument for that is the MTA capital plan will create 72,000 jobs, and not just in the MTA ridership area. For example, the MTA buys its subway cars from a company upstate, and there are companies throughout the state of New York that supply the MTA.

As for whether the MTA really needs $68 billion right away, Lieber says about $35 billion of the five-year plan is unfunded. He says that if the MTA got $1-2 billion each year, they could sell bonds to raise the rest of the money. They would, however, eventually have to pay off the bonds.

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