Despite Declining Fare Evasion, the Cost to MTA’s Revenue Remains Significant
The Citizens Budget Commission (CBC) released a report in mid-September on the cost to the Metropolitan Transit Authority’s (MTA) revenue due to fare and toll evasion. The nonprofit financial watchdog’s No Fare – The Costs of MTA Fare and Toll Evasion report indicates that approximately $1 billion in revenue was lost in 2024 as a result fare evasion. The trend has begun to gradually reverse direction due to actions taken by the MTA as well as New York State and law enforcement partners to stem fare evasion losses that steadily declined from the 3rd quarter of 2024 to the 2nd quarter of 2025; and although on pace to lower to $900 million by the end of 2025 it remains significant per “CBC’s estimate based on the MTA’s forecasted ridership and current subway and bus fare evasion rates, which were relatively stable across Q1 and Q2 2025.” Between the 1st quarter of 2024 and the 1st quarter of 2025, the rate of subway and bus fare evasion declined from 14% to 10% and from 48% to 44% respectively but remain significantly higher than the respective prepandemic levels of 4% and 25%. According to limited data shared with the CBC by the MTA, some non-enforcement interventions being used have been effective in reducing fare evasion at locations where they are being utilized such as a 36% reduction at locations with unarmed gate guards, a 60% decrease in individuals jumping the turnstile where fins and sleeves have been installed, and a 36% decline in bus fare evasion at stops where the MTA has deployed EAGLE teams, a group of over 250 Special Inspectors and Fare Enforcement Agents with civilian and law enforcement backgrounds and military experience. In addition to the May 2023 recommended four-pronged approach by MTA’s Blue-Ribbon Panel, that adds environmental, educational, and equity efforts to enforcement, the CBC included further recommendations such as the acceleration of the rollout of new faregates and a proof-of-payment system, and regular assessment of the cost-effectiveness of enforcement efforts. A further reduction in fare evasion is “essential to close the MTA’s approximately $800 million structural operating budget gap” and “could help support better service or fund capital projects directly, reducing reliance on long-term debt finance according to comments with the CBC report.