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New York MTA warns of mass redundancies

Chairman and CEO of New York’s MTA Patrick J. Foye has said the US transit agency may have to cut 40% of subway and bus services and 50% of Metro North and Long Island Rail Road services – resulting in the loss of 7400 jobs – if the MTA doesn’t receive a further USD12bn in federal aid to see it through 2020 and 2021.

Chairman and CEO of New York’s MTA Patrick J. Foye has said the US transit agency may have to cut 40% of subway and bus services and 50% of Metro North and Long Island Rail Road services – resulting in the loss of 7400 jobs – if the MTA doesn’t receive a further USD12bn in federal aid to see it through 2020 and 2021.

The MTA was allocated USD4bn through the USD25bn federal Coronavirus Aid, Relief and Economic Security (CARES) Act in March, but exhausted these funds at the end of July. It has already made cuts to both staffing and outside consulting costs, but has been one of the hardest-hit in the US as the state was at the epicentre of the pandemic.

The agency has seen 131 employee deaths from COVID-19.

A survey of American Public Transportation Association (APTA) members in September called for a further USD32bn to support the industry through 2020 and 2021, revealing that 60% of agencies will have to make service cuts and a third of private businesses serving the industry may have to close by the end of the year.