From $2.90 to $3: How the MTA Plans to Spend the Rise

Where is that $0.10 going anyway?

When you swipe (or tap) with the fare going from $2.90 to $3.00, that extra dime doesn't vanish. A big chunk goes toward keeping the system running: labor, power, cleaning, and repairs. In 2022, labor accounted for ~58% of operating expenses. The remaining operations, contracts, utilities, and materials absorb the rest.

But the fare increment also helps support debt service tied to capital projects, bridging the gap between everyday costs and big-ticket infrastructure work.

On the capital side, the MTA's 2025 to 2029 Capital Plan commits $68.4 billion to rebuilding signals, renovating stations, expanding accessibility, and laying groundwork for the Interborough Express line. Over 90% of that is "rebuild and improve" work. Yet funding is uneven. Only ~$35 billion is currently identified, leaving a $33 to 35 billion gap that will likely be filled via debt and new revenue sources.

So yes: that dime helps keep lights on and trains running today. But it's also a down payment (uneven, uncertain, and still under negotiation) on the subway's future.