MTA gets the money for its five-year capital plan in late state budget agreement — thanks largely to ‘modest’ payroll tax hike

New York lawmakers finally agreed on Monday to the state’s FY2026 budget, which includes an increased payroll tax to help fund the next MTA’s five-year capital plan for transit improvements.

Gov. Kathy Hochul said funding for the MTA’s $68 billion plan will come through a higher payroll mobility tax (PMT) for the NYC metro area — a potential source of funding that has been considered for weeks leading up to the late budget agreement.