NJ Transit is expected to receive the $1.25 billion it requested from a second round of federal coronavirus stimulus funding, but the Port Authority of New York and New Jersey appears to be left out in the cold.
The second $900 billion CARES act bill, which is still awaiting President Donald Trump’s signature, was passed by Congress. The funding makes up for lost revenue due to ridership declines caused by the coronavirus. Trump tweeted a video Tuesday night calling for changes to the bill and suggesting he might not sign the legislation. The final text of the bill is not expected to be sent to Trump for his signature before Thursday or Friday.
Of the $14 billion allocated for transit agencies in the bill, New Jersey will receive a significant share of a combined $5.924 billion to be shared between the New York-Newark, Philadelphia, Atlantic City and Allentown, Pa., metro areas, said officials from U.S. Senators Robert Menendez and Cory Booker, D-NJ.
“We are estimating approximately $1.25 billion for NJ Transit. This is a preliminary estimate and subject to change,” said Chris Flores, a Menendez spokesman.
As with the first $2 trillion CARES act funds, the Federal Transit Administration will determine the final total. The allocation of the $5 billion will use FTA formulas that take population into consideration. State officials will decide on funding levels for each transit agency, which will apply to the FTA for reimbursement of expenses and ridership losses due to COVID-19.
The state Department of Transportation will receive $248.2 million through a federal surface transportation block grant program.
But the Port Authority, which requested $3 billion to offset revenue losses, didn’t fare as well.
“Unfortunately, it doesn’t look like PA received any specific funding,” he said. “Bi-state agencies, like PA, are not eligible for traditional state transit formula funding. There was a carve out for bi-state agencies, but that got pulled.”
The bill contains $40 million for New Jersey airports, but it was unclear if that includes Newark Liberty airport which the authority operates.
“Meaningful state and local aid is badly needed but was not provided in the latest COVID-19 relief bill,” said Amanda Kwan, an authority spokeswoman. “The Port Authority has over $3 billion in revenue loses which, if unaddressed, will have a severe impact on the agency and on the region.
Officials will continue to advocate for “substantial aid with elected leaders and with the incoming administration,” she said.
The $1.25 billion will carry NJ Transit into fiscal year 2022.
“NJ Transit thanks the entire New Jersey congressional delegation for its steadfast advocacy for this vital funding, and for recognizing the critical role public transportation will play in restarting the economic engine and driving the economy forward post-pandemic,” said NJ Transit CEO Kevin Corbett.
While the funds will offset revenue losses driven by coronavirus changing travel patterns, the money will help the agency keep service running that essential workers rely on, especially on local buses that have seen the largest ridership return since the pandemic’s initial spike.
“During the height of the pandemic, NJ Transit continued moving essential frontline workers to battle COVID-19,” Corbett said in a statement. “This funding will allow NJ Transit to continue operating those essential services, as well as continuing with our enhanced cleaning and safety protocols to provide the healthiest travel environment possible.”
Experts had been concerned that while NJ Transit was carefully spending its first CARES act funding, it lacked a New York MTA like “doomsday plan” of how service could affected after June 30, 2021, the end of fiscal year 2021. The additional funding will take NJ Transit past that and into fiscal year 2022, beginning on July 1.
The first CARES act also only appropriated funding to help the Port Authority’s airports, but nothing to offset revenue losses at PATH or the agency’s bridges and tunnels. Port Authority officials said without federal funding, they would have to cut the ambitious 10 year capital plan. Only projects that in construction or close to building would be spared, said Rick Cotton, Port Authority executive director last week.
That rundown of safe projects includes ongoing construction of a new Terminal One at Newark Liberty Airport and continuing reconstruction of LaGuardia airport, officials said.
Construction is expected to begin next year on a new, replacement AirTrain at Newark Liberty airport and building a new AirTrain to serve LaGuardia, Cotton said. Planning and design and the environmental review of an expanded Port Authority Bus Terminal is continuing with a final scoping document to be released in January, Cotton said.
Contracts have been awarded to lengthen station platforms at three PATH stations to allow longer nine-car trains to be run, he said.
The authority approved a reduced $7.3 billion 2021 budget on Dec. 17 that forecasts the bi-state authority will lose $1.7 billion in revenue by the end of the year.
Please subscribe now and support the local journalism YOU rely on and trust.
Larry Higgs may be reached at lhiggs@njadvancemedia.com.
The Associated Press contributed to this report.