New York City’s mayoral election is heading into its final countdown, and Janno Lieber, chairman and CEO of the Metropolitan Transportation Authority (MTA), has recently spoken out against the highly anticipated Democratic candidate, Mandani’s proposed “free city buses” policy. Lieber labeled the idea as “impractical” and expressed strong concerns about its financial risks and system’s capacity.
Lieber pointed out in several public interviews that the bus fare revenue for MTA is close to $1 billion annually. He warned that if fares are completely eliminated, this revenue would vanish into thin air. He cautioned that a portion of MTA’s debt and financing system relies on fare revenues to repay debts. The loss of this revenue could jeopardize the financial stability of the entire institution, potentially affecting the credit of bonds.
“This is not a promise that can be easily made because there are no measures in place to fill such a large financial black hole,” Lieber criticized.
Aside from the financial aspect, Lieber is also concerned that the free policy could lead to a burden on the transportation system. He stated that if free rides are allowed, more people will inevitably take buses, but MTA currently lacks additional buses, drivers, depots, and maintenance capacity to cope with the sudden surge in demand.
“If the demand skyrockets, are we prepared with more buses? More drivers? More facilities? Pushing for free policy without answers will only create chaos,” Lieber said.
Lieber emphasized that even with public funding injections, priority should be given to helping low-income passengers who truly need assistance, rather than allowing all passengers to ride for free. He warned that without precise allocation, there could be a misallocation of resources: “We cannot let this money go to subsidize those who can fully afford the fare.”
Lieber’s statements come at a crucial stage in the countdown to the mayoral election, drawing attention from the public. Although Lieber clarified that he is not involved in the election campaign, his strong questioning is widely interpreted as directly dampening Mandani’s proposal.
Numerous English-language media outlets have pointed out that the remarks from the MTA chairman highlight the near-impossibility of implementing the “free bus” concept financially and operationally.
Mandani views the “free bus” policy as a breakthrough in achieving transportation equity. However, Lieber’s harsh criticism sheds light on the significant financial and systemic risks embedded in the proposal. This election issue surrounding “free” and “feasibility” showcases a core test for future city governance.