NEW YORK – The Metropolitan Transportation Authority (MTA) just announced its July Financial Plan, and there’s a lot packed in: better ridership numbers, cost-saving wins, a proposed fare overhaul and a shift away from MetroCards. Here’s everything you need to know in simple terms.
Budget Deficit Shrinks by $198 Million
According to the MTA, summer ridership has been strong, and it’s helping bring in more fare revenue than expected. At the same time, operating costs are running below budget.
The budget deficit for 2027–2028 is now $98 million, down by $198 million from last year.
The MTA also confirmed its plan to save $500 million annually starting 2025.
Personally, it’s good to see the agency finding real savings without instantly raising fares.
Fare Hikes Delayed Until 2026
Any fare increases have been postponed until January 2026, giving riders more time to adjust. That’s a relief for many of us relying on transit daily.
Say Goodbye to MetroCards in 2026
A big shift is happening: MTA plans to retire the Unlimited Ride MetroCards and fully embrace OMNY tap-and-go payments. That means:
- 7-day rolling fare cap becomes permanent: Pay for 12 rides, then ride free for the rest of the week.
- No more need to buy upfront passes—your OMNY payments will automatically cap.
- Express buses will also have fare capping on a promo basis: max of $67 per week for all modes.
Honestly, I’ve been using OMNY for months—it’s fast and smooth. If it saves money too, even better.
Coin Collection May End on Buses
Still dropping coins into the farebox? That could end soon.
The MTA says collecting coins costs $14 million per year. Removing it would allow proof-of-payment fare enforcement on buses and better service overall.
You’ll still be able to use cash at vending machines and at over 2,700 OMNY retail locations across NYC.
New Proposed Base Fares
Here’s what could change starting January 2026:
| Fare Type | Current | Proposed |
| Base Subway/Local Bus | $2.90 | $3.00 |
| Express Bus | $7.00 | $7.25 |
| Reduced Fare | $1.45 | $1.5 |
| Single Ride | $3.25 | $3.50 |
| OMNY Card Free | $0 | $2 (after MetroCard phaseout) |
LIRR & Metro-North: New Passes & Discounts
For commuter rail riders, changes are also on the horizon:
- Round-Trip ticket replaced by Day Pass
- New “10+1” mobile offer: Ride 10 times in 14 days, get the 11th trip free
- Paper tickets & mobile tickets expire 4 hours after purchase
- Onboard ticket surcharge up $2, with repeat onboard mobile ticket buyers penalized
I like the direction this is going—finally, something that rewards frequent mobile users without forcing pre-payment.
Fare changes: Up to 4.4% for monthly/weeklies and up to 8% for other ticket types. No increase over $2, and monthly tickets capped at $500.
CityTicket Changes
CityTicket riders (including Far Rockaway):
| Ticket Type | Current | Proposed |
| Off Peak | $5.00 | $5.25 |
| Peak | $7.00 | $7.25 |
Base fares for Metro-North’s West-of-Hudson services, the Pascack Valley Line and Port Jervis Line would increase by 4.4%.
Toll Increases Also Proposed
Drivers crossing MTA bridges and tunnels should expect modest toll hikes in 2026:
| Type | Current | Proposed |
| Major Bridges & Tunnels | $6.94 | $.7.46 |
| Henry Hudson Bridge | $3.18 | $3.42 |
| Cross Bay/Marine Parkway Bridges | $2.60 | $2.80 |
Major bridges and tunnels includes RFK, Whitestone, Throgs Neck, Verrazzano Bridges and the Queens-Midtown, Hugh L. Carey Tunnels.
What Happens Next?
Three hybrid public hearings will be held on August 19 and 20. Anyone can register and submit comments at mta.info. Online comment portal is open as of today.
There will also be in-person feedback events in September. After reviewing public feedback, the MTA Board will vote on these changes.
If approved, all updates go live in January 2026.
Final Thoughts
With fare simplification, automatic savings and the MetroCard on its way out, the MTA is clearly pushing toward a more modern, seamless transit experience. If you ride regularly, this could mean better value—as long as you’re comfortable going contactless.
Some will welcome the switch. Others might miss swiping that familiar yellow card.
For other NYC transit updates, check here.
