MTA formally delays congestion pricing as reality of Hochul decision leads to $16.5 billion in cuts

The brutal reality of Kathy Hochul’s congestion pricing kibosh came clearly into focus Wednesday, when MTA brass officially delayed the extension of the 2nd ave subway into East Harlem, the construction of elevators at 23 subway stations, the addition of new subway cars on the numbered lines, repairs to the Verrazzano-Narrows bridge, and a slew of other projects.

Tim Mulligan, the MTA’s deputy chief development officer, laid out $16.5 billion in cuts to the agency’s current capital plan.

“Plans are exactly that — they’re a plan, and they have to respond to reality,” Mulligan said. “Our reality for the capital plan changed dramatically 21 days ago.”

“We’re hopeful that resolution in one form or another is on the horizon,” he added. “But we have to operate the system, we have to protect the system, and we have to provide for the transition to the next capital plan.”

Following the presentation, the MTA board voted 10 to 1 to approve a resolution delaying the congestion pricing plan’s previously-approved June 30th start date “until after such time as the execution of the legally-required tolling agreement” can be signed off on by the state. The resolution also reaffirmed the MTA’s willingness to implement a congestion pricing plan should Hochul’s hold-up abate.

Hochul has said she is looking for ways to repalce the lost revenue but has failed to deliver any concrete plans.

Mulligan’s bare-bones budget puts off $5 billion in system expansion, a figure that includes phase 2 of the Second Ave. subway The plan also delays $2 billion in accessibility projects, $3 billion in modern subway signaling systems, $3 billion in repair work, $1.5 billion in new rolling stock purchases, $500 million in electric buses, and $1.5 billion in other infrastructure upgrades.

Under Mulligan’s plan, the MTA will potential forfeit only $2 billion of the federal government’s $3.4 billion grant to support phase 2 of the Second Ave. subway — but the 70’s era subway line plan has once again been kicked down the road, allowing some $3 billion in MTA funding to be shunted towards repair and maintenance projects.

Still, MTA chairman Janno Lieber said discussions with federal transportation officials were ongoing in an effort to buy time to save the fed funds.

“There is no intention to abandon that grant,” Lieber said.

Accessibility and elevator upgrades at 23 subway stations required under the terms of a 2022 settlement will also be kicked down the road.

Mulligan said the MTA would be making “limited” rolling stock purchases, to replace “the least reliable rolling stock on subways and commuter railroads.”

As previously reported by the Daily News, three major rolling stock purchases made up the bulk of the MTAs outstanding capital budget: an order of R211 subway cars to continue replacing the aging R46 on the A, C, N, Q and W lines with an option to purchase more to replace R68s on the B, D, N, Q, W and Franklin Ave. Shuttle lines; M9A cars meant to replace the LIRR’s obsolete M3s; and funding to purchase an eventual replacement for the 40-year-old R62 on the No. 1 and 3 lines of the subway system’s A-division.

Mulligan said the $1.1 billion A-division car purchase would be cut, leaving riders on those lines reliant on cars that average a failure every 100,000 miles or less. New locomotives on the commuter rail lines will also be delayed.

It was expected that the LIRR’s M9A would continue to funded, as would the in-process R211 order to replace the bulk of the remaining R46s in the system.

The future of the contract option meant to replace R68s remained unclear.

Money set aside to repair train yards and bus depots will also be reallocated to other projects Mulligan said — meaning the facility where the aging R68 and R62 fleets will need to be maintained will themselves see maintenance deferred.

Other deferred projects include PA system replacements in 70 subway stations and de-humidification of the main structural cables on the Verrazzano-Narrows bridge.

“As we’re headed in a slightly grim direction, I just want to emphasize one thing,” Lieber said.

“Our obligation as fiduciaries and professionals is to work with everybody, however we feel at this moment, to try to be ready that when that financial solution that is being talked about arrives — God willing — that we will be ready to put humpty dumpty back together again as quickly as possible,” he said.

“We can’t give up hope and plan for a permanent deferral.”