New York City buses provide essential transit across the five boroughs, serving as a critical component of the Metropolitan Transportation Authority’s regional network. This page covers CBC’s work on bus service speeds and reliability, the Fair Fares NYC program, MTA operating efficiency, paratransit services, and school bus contract procurement.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
The MTA could shift ambulatory trips to its broker car service (BCS) program, which uses a for-hire vehicle broker to complete trips using black cars and liveries, potentially saving up to $126 million annually by moving all ambulatory customers.
The MTA could provide service more efficiently and improve the customer experience by offering a subsidy program that allows paratransit users the opportunity to use the City’s taxicab fleet and Transportation Network Companies (TNC) like Uber and Lyft.
The MTA could consolidate the multiple management layers by altering its service design and contracting a single, full-service broker.
The MTA can discourage excessive use of paratransit by charging a higher fare, which could save as much as $184 million annually by reducing trips and increasing fare revenue.
The MTA can reduce demand by providing incentives for use of the fixed-route system by paratransit customers when appropriate.
The MTA could offer feeder service, trips that connect users with accessible fixed-route stops rather than door-to-door service, in a greater number of appropriate situations.
The MTA should pursue Medicaid reimbursement for non-emergency medical transportation, which could generate an additional $10 million to $14 million annually.
Key Data
As of May 2026, the CBC recommends expanding Fair Fares NYC eligibility to 250 percent of the federal poverty level, which would cost $146 million annually and make an additional 722,000 New Yorkers eligible.
In May 2026, the CBC noted that making buses fare-free would cost the City more than $900 million in the first year, and would not benefit the 76 percent of transit trips that occur on the subway.
As of May 2026, NYC buses are among the slowest in the nation, with an average speed of 7.0 miles per hour, which is 29.3 percent slower than the 9.9 miles per hour average of other major U.S. bus systems.
As of September 2021, the MTA faced a long-term structural deficit of approximately $2.7 billion annually, with potential savings of $268 million identified from increasing bus speeds.
In a November 2020 financial plan, the MTA reported budget gaps totaling $15.9 billion between 2020 and 2024, necessitating difficult decisions regarding service levels.
Making New York City buses fare-free would cost over $900 million annually while failing to improve bus speeds or provide financial relief to the majority of low-income commuters who rely on the subway. Instead, the city should expand the Fair Fares NYC program to 250 percent of the federal poverty level and implement operational improvements to increase bus speeds more cost-effectively.
Recommendations related to Buses
Raise the Fair Fares NYC eligibility threshold to 250 percent of the FPL.
Improve low uptake and utilization of Fair Fares NYC through expanded education, outreach, and enrollment strategies.
Leverage proven strategies, such as signal priority and physically separated busways, to make the City's streets more conducive to faster bus traffic.
Work with the MTA to further improve bus speeds.
Key Data
$900 million
— The estimated cost to the City in the first year to eliminate bus fares.
7.0 miles per hour
— The average speed of New York City buses.
29.3 percent
— The amount by which New York City bus speeds are slower than the 9.9 miles per hour average among other major U.S. bus systems.
722,000
— The number of additional New Yorkers who would become eligible for the Fair Fares NYC program if the eligibility threshold were raised to 250 percent of the federal poverty level.
$146 million
— The projected annual cost to the City for expanding Fair Fares NYC eligibility to 250 percent of the federal poverty level.
31 percent
— The current enrollment rate of the 1.23 million New Yorkers eligible for the Fair Fares NYC program.
Expanding the Fair Fares NYC program by raising the income eligibility threshold to 250 percent of the federal poverty level offers a more cost-effective solution for low-income commuters than implementing fare-free buses. This expansion would increase the eligible population by 722,000 people while the City simultaneously works to improve bus speeds through infrastructure and operational changes with the MTA.
Recommendations related to Buses
The City should raise the Fair Fares income eligibility threshold from 150 percent to 250 percent of the federal poverty level to provide a more cost-effective alternative to fare-free buses.
The City should improve education and outreach, and simplify enrollment to increase utilization of the program as an alternative to fare-free bus initiatives.
To improve bus speeds, the City should implement infrastructure improvements and operational changes in collaboration with the MTA.
Key Data
$146 million
— The cost of the proposed Fair Fares expansion.
$232 million
— The total annual cost of the Fair Fares program after the proposed expansion.
12 percent
— The portion of bus riders who transfer to the subway and would have to pay when they transfer.
31 percent
— The portion of eligible individuals currently enrolled in the Fair Fares program.
50 percent
— The portion of eligible individuals who are employed.
722,000
— The number of additional New Yorkers who would be eligible for the program under the proposed expansion.
$1.5 trillion is the MTA’s total asset value—the trains, buses, yards, and stations...all the infrastructure moving New Yorkers round the clock. At a recent CBC event, MTA Chair and CEO Janno Lieber and President of Construction and Development Jamie Torres-Springer discussed congestion pricing, fare evasion, congestion pricing, state of good…
John (“Janno”) Lieber was confirmed as Chair and CEO of the Metropolitan Transportation Authority (MTA) in January 2022, following his nomination to that position by Gov. Kathy Hochul. Lieber has been serving as MTA Acting Chair and CEO since July 2021 and is the Authority’s 15th Chairperson since it was…
The Metropolitan Transportation Authority faces a structural deficit that requires operational reforms, including specific improvements to bus productivity and speed. Implementing these changes, such as increasing bus speeds and optimizing maintenance, could yield significant annual savings to help stabilize the system's finances.
Recommendations related to Buses
The MTA should increase its subway and bus operations and maintenance productivity to realize substantial savings.
The MTA should implement measures to increase bus speeds, which could generate significant financial savings.
The MTA should pursue spatial bus productivity improvements, specifically targeting a 15% speed increase on local buses.
The MTA should prioritize bus vehicle operations, facility, and vehicle maintenance improvements to enhance system efficiency.
The MTA should undertake street redesigns to improve bus speeds, acknowledging that this may require significant investment.
Key Data
$1.6 billion
— Potential annual savings from increasing subway and bus operations and maintenance productivity.
$268 million
— Potential annual savings from increasing bus speeds.
$367 million
— Potential annual savings from bus vehicle operations, facility, and vehicle maintenance improvements.
15%
— Targeted speed increase on local buses to improve spatial bus productivity.
Sarah Feinberg was appointed Interim President of New York City Transit in February 2020. Feinberg oversees the 48,000 person workforce of NYCT, as well as operations for New York City subways, buses, paratransit services, and the Staten Island Railway. Feinberg served as the Federal Railway Administrator from 2015 to 2017.…
The Metropolitan Transportation Authority faces a $15.9 billion budget gap through 2024, necessitating a focus on operational efficiency to mitigate drastic service cuts and layoffs. Potential savings include aligning bus operations and subway maintenance with other large systems, alongside equalizing employee health benefit contributions.
Recommendations related to Buses
The MTA should focus on improving the system’s operating efficiency to mitigate the most painful of the drastic service cuts and the accompanying layoffs.
The MTA should bring lagging bus operations and subway maintenance efficiency in line with other large systems to achieve $1 billion in potential savings.
The MTA should equalize employee and retiree health benefit contributions to those of State employees to save $200 million annually.
The decision to convert Municipal Liquidity Facility debt to long-term debt should be made only after increasing efficiency, adjusting service levels, and determining federal aid levels.
Key Data
$15.9 billion
— Total budget gaps faced by the MTA between 2020 and 2024.
$4.5 billion
— Amount of gap-closing initiatives the MTA has begun implementing.
40 percent
— Proposed service cut on New York City Transit services.
50 percent
— Proposed service cut on commuter rail services.
9,000
— Number of layoffs that would accompany the proposed service cuts.
$1 billion
— Potential savings from bringing lagging bus operations and subway maintenance efficiency in line with other large systems.
The MTA's 2020 Preliminary Budget and 2020-2023 Financial Plan projects a cumulative cash deficit of $740 million by 2023, which could increase if planned savings are not achieved. An updated fiscal dashboard allows for the comparison of financial performance across MTA business lines, including subways and buses.
The Metropolitan Transportation Authority allocated $857 million for bus operating expenses in 2019. Capital spending for subways and buses totaled $11,672 million between 2010 and 2014, increasing to $17,118 million for the 2015–2019 period.
Key Data
$857 Million
— 2019 operating expense for MTA Bus.
$11,672 Million
— 2010–2014 capital plan spending for Subway & Buses.
$17,118 Million
— 2015–2019 capital plan spending for Subway & Buses.
The Fast Forward Plan outlines a significant investment in transit infrastructure, including the acquisition of 4,900 new buses over a ten-year period to modernize the fleet. Additionally, operating expenses and capital plan allocations for subway and bus services have seen substantial increases, reflecting the high costs associated with maintaining and improving New York City's transit network.
Key Data
2,800
— Number of new buses planned for the first 5 years of the Fast Forward Plan.
2,100
— Number of new buses planned for the following 5 years of the Fast Forward Plan.
$11,259
— Millions of dollars allocated to 2019 operating expense and debt service for Subway & Buses.
$11,672
— Millions of dollars allocated to the 2010-2014 capital plan for Subway & Buses.
$17,118
— Millions of dollars allocated to the 2015-2019 capital plan for Subway & Buses.
$32.2 billion is the size of the 2017-2026 Capital Plan of the Port Authority of NY and NJ. This podcast features Port Authority Executive Director Rick Cotton, followed by a discussion on public-private partnerships, airport renovations, the fate of Gateway, and the 42nd Street bus terminal.
The School Bus Grant Program, which provides salary and benefit support to firms with pupil transportation contracts, should be rejected because it circumvents competitive bidding and increases taxpayer costs. Instead, the city should rebid all school bus contracts to foster competition, improve efficiency, and generate savings to offset the costs of restoring employee protections.
Recommendations related to Buses
The City Council should reject the School Bus Grant Program, which circumvents the public procurement process and increases costs to taxpayers without enhancing services.
The de Blasio Administration should find savings in pupil transportation, which will cost $1.1 billion in fiscal year 2018.
All new school bus contracts should be awarded with an eye toward realizing savings in the costs of pupil transportation.
Contracts should be rebid with the goal of generating savings to offset the increased costs incurred from the restoration of the EPPs.
Finding savings in pupil transportation should be a priority for the City Council.
Key Data
$42 million
— Cost to extend the School Bus Grant Program for fiscal year 2018.
$136 million
— Total four-year cost of the School Bus Grant Program.
$1.2 billion
— Current annual cost of pupil transportation.
$400 million
— Savings achieved by rebidding contracts without employee protections for seniority and pay (EPPs).
1,600
— Number of daily bus routes in the set of contracts expiring in June 2018.
8,200
— Total number of daily bus routes in New York City.
Mandating two free transfers for subway and bus riders would reduce MTA revenue by $40 million annually, undermining the agency's ability to fund critical capital investments. Current fare structures already provide an affordable transit option, with inflation-adjusted costs significantly higher than the actual 2017 average revenue per ride.
Recommendations related to Buses
The Governor should veto A3439/S2560, a bill mandating two free transfers for persons purchasing a ride on Metropolitan Transportation Authority (MTA) subways and buses.
Key Data
$40 million
— Annual revenue reduction estimated by the MTA if the bill mandating two free transfers is enacted.
$1.5 billion
— Cost of the Subway Action Plan currently being implemented to stabilize the system.
$1.21
— Average fare revenue per ride in 1993.
$2.25
— The inflation-adjusted equivalent of the 1993 average fare in 2017 dollars.
17 percent
— The amount by which the inflation-adjusted 1993 fare exceeds the 2017 year-to-date average revenue per ride.
$1.91
— The 2017 year-to-date average revenue per ride.
Residents across New York City rated bus services with a 57.2% satisfaction rate, while the Bronx overall reported a slightly lower satisfaction rate of 51.2%. Within the Bronx, satisfaction with bus services varies significantly by community district, ranging from a low of 38.9% in Community District 1 to a high of 69.7% in Community District 8.
Key Data
57.2%
— NYC overall resident satisfaction rating for bus services.
51.2%
— Bronx overall resident satisfaction rating for bus services.
69.7%
— Highest resident satisfaction rating for bus services among Bronx community districts, found in CD8.
38.9%
— Lowest resident satisfaction rating for bus services among Bronx community districts, found in CD1.
New York City's bus service has experienced a decline in reliability, with 32 of 36 local routes showing reduced performance in 2015. Addressing these service issues will require the implementation of necessary managerial and policy reforms.
Recommendations related to Buses
Righting these worrying trends in bus service performance will require managerial and policy reforms.
Key Data
32 of 36
— local bus routes that experienced a decrease in reliability in 2015
A 2017 survey of New York City residents found that 57.2% of respondents rated bus services as either excellent or good. The survey results provide a comprehensive look at public satisfaction with various city services, including transportation, across different boroughs and demographics.
Key Data
57.2%
— Overall proportion of residents who rated bus services as excellent or good.
13.5%
— Proportion of residents who rated bus services as excellent.
43.8%
— Proportion of residents who rated bus services as good.
29.8%
— Proportion of residents who rated bus services as fair.
12.9%
— Proportion of residents who rated bus services as poor.
The Port Authority's $32 billion capital plan includes a $3.5 billion investment for the replacement of the Bus Terminal, though the total cost is expected to reach $10 billion. The plan lacks a transparent needs assessment and relies on political bi-state parity rather than objective criteria for project selection, potentially undermining the efficiency of critical transportation infrastructure.
Recommendations related to Buses
The Port Authority should develop a publicly-available needs assessment that identifies spending necessary to bring facilities to a state of good repair, such as the Bus Terminal.
The Port Authority should establish a set of criteria for selecting enhancement and expansion projects that includes benefit-to-cost analyses to evaluate projects like the Bus Terminal.
The Port Authority should discard the use of bi-state parity to allocate capital resources between 'New Jersey' projects and 'New York' projects, which has impacted the Bus Terminal funding.
Key Data
$3.5 billion
— Cash disbursements allocated in the 2017–2026 capital plan for the replacement of the Bus Terminal.
$10 billion
— Expected total cost for the replacement of the Bus Terminal, with remaining payments due after 2026.
$32 billion
— Total value of the Port Authority's 10-year capital plan from 2017 to 2026.
$3,869
— Million dollars allocated to the Bus Terminal business line in the 10-year capital plan.
The program providing grants to school bus transportation companies to maintain employee wages and benefits should be discontinued. These supplementary payments undermine the integrity of the City's competitive bidding process and create a precedent for other vendors to seek similar contract enhancements.
Recommendations related to Buses
The administration should discontinue the program that provides grants to companies that provide school bus transportation.
New York City's Access-A-Ride paratransit program is a vital but costly service that relies heavily on internal MTA cross-subsidies, with expenses projected to reach $646 million by 2020. To improve financial sustainability, the MTA should implement strategies such as shifting ambulatory trips to lower-cost broker car services, adjusting fares, and pursuing Medicaid reimbursement for non-emergency medical transportation.
Recommendations related to Buses
The MTA could shift ambulatory trips to its broker car service (BCS) program, which uses a for-hire vehicle broker to complete trips using black cars and liveries, potentially saving up to $126 million annually by moving all ambulatory customers.
The MTA could provide service more efficiently and improve the customer experience by offering a subsidy program that allows paratransit users the opportunity to use the City’s taxicab fleet and Transportation Network Companies (TNC) like Uber and Lyft.
The MTA could consolidate the multiple management layers by altering its service design and contracting a single, full-service broker.
The MTA can discourage excessive use of paratransit by charging a higher fare, which could save as much as $184 million annually by reducing trips and increasing fare revenue.
The MTA can reduce demand by providing incentives for use of the fixed-route system by paratransit customers when appropriate.
The MTA could offer feeder service, trips that connect users with accessible fixed-route stops rather than door-to-door service, in a greater number of appropriate situations.
The MTA should pursue Medicaid reimbursement for non-emergency medical transportation, which could generate an additional $10 million to $14 million annually.
Key Data
$461 million
— Cost of the Access-A-Ride paratransit program in 2015.
$71
— Cost per trip for the Access-A-Ride program in 2014, the highest among 29 cities with similar programs.
17
— Number of people registered to use the Access-A-Ride service per 1,000 residents.
$126 million
— Potential annual savings from moving all ambulatory customers to the broker car service (BCS) program.
$184 million
— Potential annual savings from doubling the paratransit fare.
$385 million
— Projected amount of MTA revenue used to subsidize Access-A-Ride in 2020.
Legislation proposing an increase from one to two free transfers on subways and buses would reduce MTA revenue by $40 million annually, hindering the agency's ability to fund critical capital projects. Given that current fare structures already provide an affordable option for high-volume users, sacrificing this revenue to expand transfer policies is considered shortsighted.
Recommendations related to Buses
The Governor should veto S3228/A2607, a bill mandating an increase from one to two free transfers for persons purchasing a ride on Metropolitan Transportation Authority (MTA) subways and buses.
Policymakers should avoid depriving the agency of fare revenue that can support debt service for $500 million in much needed capital investments to benefit a limited number of riders already paying relatively low fares.
Key Data
$40 million
— Estimated annual revenue reduction for the MTA if the bill mandating an increase in free transfers is enacted.
$1.21
— Average fare revenue per ride on the MTA in 1993.
$2.05
— Inflation-adjusted equivalent of the 1993 average fare revenue per ride in 2014.
$1.70
— Actual average revenue per ride on the MTA in 2014.
$500 million
— Amount of capital investments that could be supported by the fare revenue currently at risk.
The Metropolitan Transportation Authority requires a sustainable funding model that balances fare revenue, motor vehicle fees, and tax subsidies to support its extensive transit network, including buses and subways. To achieve financial stability, the system should aim for fare coverage of 45 to 50 percent of operating costs, supplemented by specific contributions from motorists and tax-based subsidies to address capital needs and service requirements.
Recommendations related to Buses
Mass transit users should pay fares sufficient to cover 45 to 50 percent of the operating costs of mass transit services like buses.
Motor vehicle user fees should generate a surplus large enough to cover 20 to 25 percent of the cost of mass transit services, including buses, to help compensate for the negative externalities of vehicle use.
Tax subsidies to mass transit should comprise 25 to 30 percent of the operating costs and also fund "catch up" capital investments needed to bring the mass transit system, including buses, to a state of good repair.
Key Data
$7.4 billion
— Annual cost to operate the New York City subway and bus system.
$632 million
— Annual operating budget for the MTA Bus Company.
45 to 50 percent
— Recommended portion of mass transit operating costs that should be covered by passenger fares.
20 to 25 percent
— Recommended portion of mass transit costs that should be covered by motor vehicle user fees.
25 to 30 percent
— Recommended portion of mass transit operating costs that should be covered by tax subsidies.
$16.6 billion
— Estimated funding requirement for mass transit services in 2018.
The MTA could generate approximately $93 million annually by capping the number of rides on unlimited 7-day and 30-day MetroCards, providing a fairer alternative to broad fare increases. This strategy would help address the agency's financial needs, such as the $15 billion funding gap in its capital plan, without impacting the majority of riders who do not use the passes excessively.
Recommendations related to Buses
The MTA should cap the number of rides available to “unlimited” 7-day and 30-day MetroCards to secure approximately $93 million in annual revenue.
The MTA should implement a fairer strategy by capping the number of rides on these passes at a level above the break-even point rather than relying solely on base fare increases.
Key Data
$93 million
— Estimated annual revenue the MTA could secure by capping the number of rides on unlimited 7-day and 30-day MetroCards.
72 percent
— The increase in bus ridership between 1996 and 1999, largely driven by the new free transfer policy.
$147 million
— The estimated annualized yield from the 2015 subway and bus fare increase.
$15 billion
— The funding gap for the proposed MTA capital plan.
$1.5 billion
— The amount of borrowing for the capital plan that could be supported by the revenue generated from capping unlimited pass rides.
NY1 As the MTA prepares to raise subway and bus fares once again, a fiscal watchdog group says riders should pay even more than what the agency is expected to propose.
New York City's bus systems handle over 2.6 million daily passenger trips but rank among the lowest in the nation for cost efficiency and labor productivity. While traffic congestion contributes to slower operating speeds of 7.7 mph for NYCT Bus and 8.6 mph for MTA Bus, these factors do not fully account for the systems' overall poor performance compared to other major cities.
Key Data
2.6 million
— The number of passenger trips handled by the Metropolitan Transportation Authority's buses each day.
2.3 million
— The number of daily passenger trips for the NYCT bus system, compared to 1.1 million for Los Angeles.
873,000
— The number of daily passenger trips for the Chicago bus system.
7.7
— The average speed in miles per hour for the NYCT Bus system.
8.6
— The average speed in miles per hour for the MTA Bus system.
10.7
— The median speed in miles per hour for all 10 bus systems analyzed.
New York City's bus operations are significantly less efficient than those of other large U.S. transit systems, ranking seventh or lower in most cost and productivity metrics. The MTA should prioritize efficiency improvements in these bus systems, specifically targeting vehicle maintenance and non-vehicle operations where performance lags behind national peers.
Recommendations related to Buses
The MTA should prioritize efficiency initiatives for the two large bus systems, as they are inefficient compared to other large U.S. bus systems and comprise a major portion of operating expenses.
The MTA must address the most troublesome functions in bus operations, specifically vehicle maintenance and non-vehicle operations, where performance is particularly weak.
The MTA should work to improve labor productivity, as the bus systems currently rank in the bottom two for all three productivity measures compared to national peers.
Key Data
$2,289.4 Million
— Total operating expense for New York City (NYCT Buses) in 2009.
2,308,596
— Daily passenger trips for New York City (NYCT Buses).
36,366
— Daily hours of service for New York City (NYCT Buses).
$22.29
— Operating expense per mile of service for New York City (NYCT Buses).
The New York region's transportation system, including its extensive bus and mass transit network, faces significant financial challenges due to inadequate maintenance and inconsistent pricing policies. To ensure long-term viability, the region should adopt a public enterprise approach that relies on predictable subsidies and user fees, while accelerating the elimination of the maintenance backlog.
Recommendations related to Buses
The governors of New York and New Jersey should create a new entity with authority to set and enforce regional transportation policies and priorities.
The region’s mass transit agencies should have sufficient resources to meet all necessary operating expenses.
Mass transit riders should pay a fare sufficient to cover one-half the transit agencies’ operating costs.
The existing backlog in maintenance and repairs caused by a history of under-funding and neglect should be eliminated at an accelerated pace and be financed by general fund appropriations.
New capital for improvements and expansions should be generated by borrowing to be repaid in the same manner as identified above for meeting current operating expenses.
Key Data
5,000
— Number of buses operated by the Metropolitan Transportation Authority.
$9.4 billion
— Total operating expenditures for mass transit in the region in 2001.
$1.2 billion
— Aggregate deficit for mass transit in the region in 2001.
48.3%
— Farebox recovery ratio for New York City Transit, which includes bus and subway lines.
New York City maintains the largest bus fleet among the studied regions, yet it faces high operating costs per passenger and lower vehicle utilization compared to international competitors. To improve competitiveness, the city should focus on lowering fixed operating costs, increasing vehicle occupancy, and continuing to innovate fare policies to attract more riders.
Recommendations related to Buses
New York's mass transit system, including its bus network, should lower fixed operating costs to become more competitive.
Transit leaders should increase vehicle occupancy to achieve lower costs per passenger.
The city should continue innovation in fare policy to make New York competitive with other world cities in terms of more efficient operation of mass transit.
Transit leaders should identify modern human resource measures to help enhance New York’s future competitiveness.
Efforts to increase ridership should focus on off-peak hours to reduce average costs per passenger.
Key Data
8,689
— The number of buses in the New York City fleet, which is the largest among the six regions studied.
5,616
— The number of miles of routes traveled by buses in New York, which is more extensive than any of the other regions for which data are available.
$1.79
— The operating cost per passenger for New York's bus system in 1995.
$.89
— The average revenue per passenger for New York's bus service, which is higher than in all five of the competitor regions.
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