Fair Fares NYC is a city-funded program that provides half-price subway and bus fares to eligible low-income New York City residents. This page covers CBC’s work on program eligibility thresholds, enrollment and outreach strategies, fiscal sustainability, transit affordability, and the integration of fare subsidies into the broader Metropolitan Transportation Authority financial ecosystem.
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..
Raising the Fair Fares income eligibility threshold from 150 percent to 250 percent of the federal poverty level would make life more affordable and increase economic opportunities for low-income New Yorkers.
The City should improve education and outreach to increase program utilization.
The City should simplify enrollment to increase program utilization.
To improve bus speeds, the City should implement infrastructure improvements and operational changes in collaboration with the MTA.
The City should raise the Fair Fares NYC eligibility threshold to 250 percent of the FPL to better serve low-income residents.
The City should improve low uptake and utilization of Fair Fares NYC through expanded education, outreach, and enrollment strategies.
The City should leverage proven strategies, such as signal priority and physically separated busways, to make the City’s streets more conducive to faster bus traffic.
The City should work with the MTA to further improve bus speeds through operational changes.
Key Data
In June 2026, the City agreed to expand the Fair Fares program eligibility up to 200% of the Federal Poverty Level in the fiscal year 2027 budget agreement.
The expansion of the Fair Fares program to 200% of the Federal Poverty Level is a positive step that improves transportation access for working New Yorkers. This initiative is considered a commonsense approach that provides riders with flexible transit options at a fraction of the cost of free bus service.
Key Data
200%
— The threshold of the Federal Poverty Level for the Fair Fares program expansion.
Expanding the Fair Fares program by raising the income eligibility threshold from 150 percent to 250 percent of the federal poverty level would cost $146 million annually and extend benefits to an additional 722,000 New Yorkers. To improve the program's effectiveness and address low enrollment, the city should simplify the application process, enhance outreach efforts, and implement operational changes to improve transit speeds.
Recommendations related to Fair Fares Program
Raising the Fair Fares income eligibility threshold from 150 percent to 250 percent of the federal poverty level would make life more affordable and increase economic opportunities for low-income New Yorkers.
The City should improve education and outreach to increase program utilization.
The City should simplify enrollment to increase program utilization.
To improve bus speeds, the City should implement infrastructure improvements and operational changes in collaboration with the MTA.
Key Data
150 percent to 250 percent
— The proposed expansion would raise the Fair Fares income eligibility threshold from 150 percent to 250 percent of the federal poverty level.
$146 million
— The proposed expansion of the Fair Fares program would cost $146 million.
$232 million
— The expansion would bring the program’s total annual cost to $232 million.
722,000
— An additional 722,000 New Yorkers would be eligible for the program under the proposed expansion.
31 percent
— Only 31 percent of those eligible for the Fair Fares program are currently enrolled.
50 percent
— Only 50 percent of eligible individuals are employed, which contributes to lower commute frequency.
Expanding the Fair Fares NYC program to 250 percent of the federal poverty level would provide half-priced transit to 722,000 additional residents at a fraction of the cost of making buses free. This targeted approach preserves fiscal resources while addressing transit affordability more effectively than universal fare elimination, which would cost over $900 million annually and fail to benefit most low-income subway commuters.
Recommendations related to Fair Fares Program
The City should raise the Fair Fares NYC eligibility threshold to 250 percent of the FPL to better serve low-income residents.
The City should improve low uptake and utilization of Fair Fares NYC through expanded education, outreach, and enrollment strategies.
The City should leverage proven strategies, such as signal priority and physically separated busways, to make the City’s streets more conducive to faster bus traffic.
The City should work with the MTA to further improve bus speeds through operational changes.
Key Data
$900 million
— The estimated annual cost to eliminate bus fares in the first year.
$86 million
— The cost of the Fair Fares NYC program in fiscal year 2025.
400,000
— The number of New Yorkers currently enrolled in the Fair Fares NYC program.
31 percent
— The portion of the 1.23 million eligible New Yorkers currently enrolled in Fair Fares NYC.
$146 million
— The projected annual cost to expand Fair Fares NYC eligibility to 250 percent of the FPL.
722,000
— The number of additional New Yorkers who would become eligible for Fair Fares NYC under the proposed expansion.
The MTA should collaborate with the City to evaluate the cost-effectiveness and potential expansion of the Fair Fares NYC program, as less than half of eligible residents were enrolled as of August 2025. Furthermore, the MTA needs to study fare subsidy needs by income band and ridership to better understand the low program participation and determine if expansion is warranted.
Recommendations related to Fair Fares Program
Work with the City to assess the cost-effectiveness of, and consider expanding, Fair Fares NYC.
Work with the City to assess the effectiveness of the Fair Fares Program and consider expansion.
The MTA should study the need for fare subsidies by income band and transit ridership to assess the low take-up of Fair Fares NYC and the need for expansion.
Key Data
Less than half
— Proportion of eligible New Yorkers enrolled in the Fair Fares NYC program as of August 2025.
The NYC adopted budget expanded the Fair Fares program without identifying necessary offsetting savings to ensure long-term sustainability. This approach avoids the difficult fiscal choices required to maintain such programs beyond the immediate fiscal year.
Recommendations related to Fair Fares Program
The City must ensure that spending added during budget adoption, such as for the Fair Fares program, is offset by savings elsewhere to ensure long-term sustainability.
The Fair Fares program is considered a critical component of the Metropolitan Transportation Authority's financial ecosystem, particularly for those experiencing economic hardship. Maintaining a well-marketed version of this program is essential to ensuring transit remains accessible to lower-income residents while the agency addresses its broader fiscal challenges.
Recommendations related to Fair Fares Program
The Citizens Budget Commission enthusiastically supports Fair Fares and considers a well-marketed program to be a critical part of the MTA financial ecosystem.
The Metropolitan Transportation Authority's financial stabilization plan includes the City's Fair Fares program as a beneficial component of the fare ecosystem that helps ensure lower-income residents are served. While the plan relies on fare increases to maintain fiscal stability, the burden of funding the system should be more equitably distributed among the State, the City, and labor productivity improvements.
The NYC Ferry system should implement a tiered pricing structure that includes a discount for low-income riders, similar to the existing Fair Fares program for subways and buses. This approach would help ensure that transit subsidies are better targeted toward those with the greatest need while improving the overall financial transparency of the ferry system.
Recommendations related to Fair Fares Program
The New York City Economic Development Corporation should implement a discounted fare for low-income ferry riders similar to the Fair Fares program used for subways and buses.
The New York City Economic Development Corporation should reassess the most subsidized ferry routes to determine if they provide the broad-based value and effectiveness the public deserves.
The New York City Economic Development Corporation should evaluate the impact of the new fare system on ridership and finances, and if appropriate, increase fares or change routes and timetables.
The New York City Economic Development Corporation should consider a single-ride ticket price closer to the MTA’s express bus fare.
The New York City Economic Development Corporation should implement higher fares on weekends and for the longer, more expensive routes.
The Metropolitan Transportation Authority faces a $2.7 billion annual structural deficit that requires significant operational reforms and cost-saving measures to address. To ensure transit remains accessible during these financial adjustments, the City must actively promote the Fair Fares program, which offers half-price transit services to lower-income residents.
Recommendations related to Fair Fares Program
The City should undertake robust efforts to promote its Fair Fares program, which provides half-price transit service to lower income residents.
The City is encouraged to maintain and maximize participation in the Fair Fares program to support low-income transit riders. This initiative serves as a vital companion policy to the Metropolitan Transportation Authority's broader fare and toll structure adjustments.
Recommendations related to Fair Fares Program
The City should continue to implement and ensure full uptake of Fair Fares as a key companion policy to assist low-income riders.
The Fair Fares program, which provides subsidized half-fare Metrocards to low-income residents, saw actual fiscal year 2019 expenditures of $25 million, significantly lower than the $106 million allocated due to a slower-than-expected rollout. As of November 2019, 92,541 New Yorkers were receiving these benefits, with funding for the program currently set at $106 million for both fiscal years 2020 and 2021.
Key Data
$106 million
— The amount allocated for the Fair Fares program in the Fiscal Year 2019 Adopted Budget, representing 50 percent of the estimated full cost.
$25 million
— The actual expenditures for the Fair Fares program in fiscal year 2019, which were lower than budgeted due to a slower than expected rollout.
92,541
— The number of New Yorkers receiving subsidized Metrocards through the Fair Fares program as of November 2019.
800,000
— The estimated eligible population for the Fair Fares program as projected by advocates.
350,000
— The number of individuals expected to sign up for the Fair Fares program by the end of the second year.
50,000
— The number of individuals who had signed up for the Fair Fares program by June 2019.
The Fair Fares proposal is estimated to cost $212 million and is identified as an impactful initiative that would benefit constituents across all City Council districts. Adopting this program is recommended as a way for the City Council to prioritize high-return investments within the municipal budget.
Recommendations related to Fair Fares Program
The City Council should adopt the Fair Fares proposal, which would be impactful and benefit the constituents of all Council members.
Key Data
$212 million
— Estimated cost of adopting the Fair Fares proposal.
CUNY TV Channel 75 The City Council has presented a budget that includes reduced priced Metrocards for low-income New Yorkers and other ideas. Brian discusses this with Citizens Budget Commission president, Carol Kellerman and City Councilman Ydanis Rodriguez.
The Mayor's proposal to increase the personal income tax to fund MTA capital needs is unnecessary, as motorists should instead be charged through congestion pricing or similar measures. While the implementation of city-funded half-price MetroCards for low-income riders is a positive step, it should be financed through existing City resources rather than new tax revenue.
Recommendations related to Fair Fares Program
The city should fund half-price MetroCards for low-income riders using existing City resources rather than a new tax.
The Fair Fares proposal, which aims to provide half-price transit fares for low-income working-age adults, is a reasonable measure that should be funded by New York City rather than through higher fares for other riders or state tax revenue. With an estimated cost of $212 million, this initiative represents a small fraction of the city's operating budget and aligns with broader goals to reduce income inequality and promote economic advancement.
Recommendations related to Fair Fares Program
The Fair Fares proposal to subsidize fares for low-wage workers is worth enacting, and the costs of providing this subsidy should be borne by New York City.
If the mayor supports the policy, it should be a priority that is accommodated within the city’s financial plan.
Key Data
$212 million
— Estimated cost of the Fair Fares proposal in foregone fare revenue.
$1,452
— Annual cost of a monthly MetroCard for a single worker with earnings at the federal poverty line.
$1 billion
— Total annual operating funds the city provides to the MTA.
$100 million
— Annual cost to the city for providing discounted MetroCards to students and senior citizens.
$130 million
— Yearly cost for city-subsidized paratransit for users who are disabled.
$84.7 billion
— Total size of New York City’s operating budget.
Rising transit costs in New York City disproportionately burden low-income residents, creating barriers to employment and economic mobility. Implementing a half-price fare program for working-age adults at or below the federal poverty threshold would improve affordability and ensure equitable access to the city's transit network.
Recommendations related to Fair Fares Program
The city should implement half-price fares for working-age adults who have incomes at or below the federal poverty threshold to match the discount available to senior citizens.
The Human Resources Administration should determine eligibility for reduced fares, as it already verifies incomes for social-service programs.
The mayor and City Council should cover the estimated $200 million annual cost of the fare discount program as part of their strategy to make New York more affordable.
Key Data
$116.50
— The cost of a monthly MetroCard in 2017.
$121
— The projected cost of a monthly MetroCard following the scheduled fare increase.
$1,452
— The projected annual cost of a monthly MetroCard following the scheduled fare increase.
$200 million
— The estimated annual cost of providing half-price fare discounts to eligible low-income residents.
$1 billion
— The amount the city contributes annually to the MTA’s operating budget.
$300 million
— The amount the city contributes annually for reduced fares for seniors, students, and paratransit users.
The Metropolitan Transportation Authority should implement a multi-year fare and toll strategy that includes higher annual revenue increases and a restructuring of senior citizen discounts to better target low-income riders. These measures aim to address unsustainable borrowing practices and ensure the transit system's long-term financial viability through more equitable revenue distribution.
Recommendations related to Fair Fares Program
Fare and toll decisions should be made on a multi-year basis to ensure predictability for the system’s revenues and passengers.
Transit fares should yield a revenue increase greater than 7.5 percent annually in 2013 and greater than 15 percent in 2015 to cover rising operating costs.
The MTA should begin a more limited senior citizen discount policy and explore its eventual elimination to better target low-income riders.
The MTA should cap the number of allowed rides for weekly and monthly passes to protect against fraudulent abuse.
The MTA should explore peak pricing on subways and buses with a goal of reduced rush hour crowding rather than as a revenue raiser.
The MTA should extend the fare calculation policy used for Senior Citizen EasyPay Metrocards to all EasyPay customers to ensure they receive the best deal available.
Key Data
42 percent
— Current reliance on fares for revenue.
13 percent
— Current reliance on cross subsidies from motor vehicle use.
50 percent
— The current discount rate for senior citizens.
7.5 percent
— The proposed revenue increase for 2013.
15 percent
— The proposed revenue increase for 2015.
65
— The current age threshold for senior citizen discounts.
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