Port Authority Hikes PATH Fares , Bridge and Tunnel Tolls Cites, “Extraordinary Investment Level”

Once-in-a-generation overhaul of the region’s infrastructure

the staff of the Ridgewood blog

Fort Lee NJ, following a month-long public comment period, the Port Authority of New York and New Jersey Board of Commissioners today approved the agency’s $9.4 billion 2025 budget, which includes $4.1 billion in operating expenses, $3.6 billion in capital expenses, and $1.7 billion for debt service and deferred expenses.

The extraordinary investment level spans the redevelopment of the region’s major airports, the replacement of the outdated Midtown Bus Terminal, the once-in-a-lifetime top-to-bottom rehabilitation of the George Washington Bridge, the modernization of the roadway network entering the seaport’s busiest marine complex, and the two-year initiative to overhaul the PATH commuter rail’s tracks, stations and signals.

The budget includes an increase of $0.25 to the bridge and tunnel toll rate for all vehicle classes in January 2025 beyond the automatic, inflation-based adjustments that occur annually. This adjustment will drive revenue increases needed to help address $3 billion in COVID-19 pandemic losses and inflationary pressures for the agency, while supporting the Port Authority’s projects at the agency’s bridges, tunnels, PATH, seaport and airports. In addition, the approved budget includes two toll adjustments to incentivize non-E-ZPass users to enroll and to incentivize the proper use of E-ZPass transponders. The agency announced a major communications campaign to encourage E-ZPass enrollment and proper transponder use to benefit from lower E-ZPass rates.

The agency’s $3.6 billion capital budget will target spending more than $750 million higher than 2024 capital spending as the agency advances several major capital projects such as the $2 billion Restoring the George program and the delivery of 72 new PATH railcars, and undertakes preliminary planning and substantial work to kick off its next set of priority projects, such as the multi-phase replacement of the Midtown Bus Terminal while continuing existing operations, the total replacement of the outmoded AirTrain Newark and advancement of the EWR Vision Plan to completely reimagine Newark Liberty International Airport after the successful opening of its new award-winning Terminal A.

As the Port Authority executes on its historic capital plan, the agency is winning accolades from customers and critics alike, bringing critical facility transformations across the finish line and making tangible progress on major infrastructure projects that had stagnated for decades. This once-in-a-generation overhaul of the region’s infrastructure is strengthening the region’s global competitiveness, while creating tens of thousands of good-paying local jobs and improving the travel experience for hundreds of millions of people annually.

The capital spending in the agency’s 2025 budget will fund:

• At John F. Kennedy International Airport, major construction progress on the supporting infrastructure for new terminals 1 and 6, as well as the rebuilding of the entire airport roadway network as part of the airport’s transformation into a world-class gateway.

• The planning and design work needed to move forward on the EWR Vision Plan to transform Newark Liberty into a 21^st century international gateway with a new on-airport mass transit system serving all terminals that will replace the existing AirTrain Newark that opened in the 1990s.

• The project to add pedestrian access from underserved Newark and Elizabeth communities to the Newark Airport Rail Link station, expanding mass transit and airport access for people in those communities seeking faster options to employment at the airport or in New York City via NJ TRANSIT or Amtrak.

• Further progress on the multi-year $2 billion Restoring the George program to replace or rehabilitate every major component of the 93-year-old George Washington Bridge, the world’s busiest bridge, including all 592 of its suspension wires. Of the program’s 11 projects, four are complete and six are underway, with a final project undergoing preliminary planning.

• The start of early works construction for a new world-class Midtown Bus Terminal, such as the platforms over the Lincoln Tunnel’s Dyer Avenue ramps and the start of work of a new bus staging and storage facility that will serve as the interim main terminal while the existing bus terminal is demolished. The bus terminal replacement project will be constructed in phases to allow for the continued operation of the main terminal building and minimal disruptions to service for bus customers.

• Track infrastructure replacement, station rehabilitations, signal and equipment upgrades, and new rail cars through the 2-year $430 million PATH Forward program to improve service and reliability of the PATH commuter rail.

• The full implementation of PATH’s new tap-and-go fare payment system by the end of 2025, including replacements of existing SmartLink/MetroCard readers with new TAPP readers at all PATH stations and the introduction of a new TAPP card that will enable carryovers of existing SmartLink PATH fare discounts.

• Rebuilding the entire Port Street complex of access roads to Port Newark and the Elizabeth-Port Authority Marine Terminal, which are among the busiest marine facilities within the East Coast’s busiest seaport complex. The current roadway and ramps were built more than 60 years ago and are being replaced with new roadways designed to modern highway standards and built to accommodate the longer and wider trucks that currently serve the port.

“For over a century, the Port Authority has been a pillar of imagination and innovation, shaping infrastructure that endures and evolves with this dynamic region,” said Port Authority Chairman Kevin O’Toole. “This budget continues our effort to set a bold new standard for that work. We’re investing significant money to keep the pedal to the metal on what has become the most ambitious capital program in our 103-year history, overhauling, modernizing and refreshing this region’s critical infrastructure as we chart a course to keep our region moving into an even stronger future.”

“The Port Authority is rewriting the story of regional infrastructure. We’ve seen LaGuardia rise from worst to first, JFK undergoing a sweeping transformation, Newark Liberty unveil its world-class Terminal A, and the busiest vehicular bridge in the world undergo a comprehensive renewal,” said Port Authority Executive Director Rick Cotton. “As we move into 2025 and begin early works construction for a new Midtown Bus Terminal, we are laser focused on building a future that will benefit this region for generations to come. This budget acknowledges our agency’s extraordinary momentum with ambitious projects that deliver lasting value.”

As the Port Authority transforms its legacy assets into modern, world-class facilities to meet 21^st century standards, it must ensure that it has adequate resources to operate, maintain and secure its larger facilities, and continue its ambitious capital program.

Unlike similar agencies that operate and maintain critical infrastructure, the Port Authority does not receive any tax revenue from the states of New York or New Jersey. The Port Authority is a self-funded agency with revenue generated in part from third-party fees, rentals, and other charges to businesses operating at its facilities.  The agency works aggressively to generate maximal revenues from non-toll and non-fare sources.

While 65 percent of projected 2025 operating revenues will come from non-toll and non-fare sources, revenue changes from a package of toll and fare adjustments have been approved for implementation in 2025.  The adjustments are necessary:

• to address the negative impacts of the COVID-19 pandemic on revenues (loss of $3 billion over the 24-month period of March 2020 through March 2022) and resultant continuing inflationary impacts on operating and capital costs, and;

• to continue to invest in the ambitious capital agenda for the agency’s tunnel, bridge, terminal and PATH facilities as laid out in the 2017-2026 Capital Plan.

2025 TOLL AND FARE ADJUSTMENTS

The Port Authority thoroughly solicited public input as it considered proposed toll and fare changes, as well as the agency’s proposed budget for 2025. To ensure the public had ample opportunity to share its views, four public hearings were scheduled at multiple locations across the region and at varying times of day. Members of the public were encouraged to attend in person or virtually, or to submit comments for either the toll and fare changes or the proposed budget, or for both, online or by mail. All public comments provided at the hearings or submitted to the agency during the public comment period were considered ahead of the Board action.

The Port Authority has approved an incremental increase of $0.25 for autos, motorcycles and trucks to be implemented effective Jan. 5, 2025.

The Board has also authorized $0.25 increases above the annual automatic inflation-based toll adjustments for autos and trucks in each of the next three years. The adjustments preserve lower rates and discounts, including the Staten Island Bridges Plan.

Incentivizing E-ZPass Usage and Proper Positioning of Transponders

The approved adjustments also contain two changes to existing toll rates, affecting only 10-15 percent of transactions:

• To incentivize drivers to enroll in E-ZPass and take advantage of lower rates by increasing the E-ZPass discount, thereby enhancing the benefit of E-ZPass, the adjustment raises the toll-by-mail rate to $22.38, a level consistent with the MTA’s two-way rate. Increased use of E-ZPass will significantly improve the efficiency of toll collection. The agency will delay the implementation date to July 2025 to allow for an intense communications campaign to urge drivers to enroll in E-ZPass to take advantage of the increased discount and significant E-ZPass savings.
• The adjustment introduces new mid-tier toll rates across all vehicles classes for vehicles with NY/NJ E-ZPass accounts whose transponders are not properly mounted (9 percent of transactions). The new tier incentivizes drivers to take advantage of lower E-ZPass rates by ensuring their transponders are properly positioned for accurate reading by the overhead gantry equipment while covering the incremental cost to process transactions where the transponder is incorrectly mounted. This adjustment intends to entice drivers to properly mount their E-ZPass. The agency will delay implementation to July 2025 to allow for an intense communications campaign to urge drivers to properly display E-ZPass transponders to take advantage of the lower E-ZPass rates.

Eliminating Truck Volume Discount 

Another change affects less than 0.5 percent of truck accounts.  This adjustment eliminates an existing 10 percent truck volume discount program that is used by companies whose trucks make more than 100 off-peak trips in a month. To give drivers time to plan, this change will not be effective until July 6, 2025.

Implementing a PATH Disability Fare Program

A new reduced fare program has been approved for PATH riders with qualifying disabilities. Passengers who qualify under this program would pay the same reduced fare rate as a senior citizen, or $1.50 per ride effective once the new TAPP fare system is fully operational, which is estimated for summer 2025.

2025 AUTOMATIC INFLATION BASED TOLL ADJUSTMENTS

Bridge and Tunnel Tolls

Pursuant to the September 2019 Board action on bridge and tunnel tolls, an automatic inflation-based toll adjustment for autos and trucks occurs annually at the beginning of each calendar year. Based on the Board-specified inflation adjustment, an automatic increase will occur effective Jan. 5, 2025.  The automatic Board-mandated increase will raise the auto peak E-ZPass tolls by $0.43 and truck peak E-ZPass tolls by $0.58 per axle, effective Jan. 5, 2025.

PATH Fares

Pursuant to the September 2019 Board action on PATH fares, an automatic inflation-based fare adjustment was triggered because the cumulative increase of CPI was greater than $0.25.  This Board-mandated increase of the single ride fare from $2.75 to $3 will be effective on Jan. 12, 2025.  All existing multi-trip and discounted fares will be maintained with appropriate adjustment. The single ride fare was last adjusted in October 2014, more than a decade ago.

 

STATUS OF THE MOST AMBITIOUS INFRASTRUCTURE PROGRAM IN THE PORT AUTHORITY’S HISTORY:

Newark Liberty International Airport:

• The Vision Plan to reimagine the future of Newark Liberty International Airport was released to the public, showcasing plans for a new Terminal B. This builds on the momentum of Newark Terminal A which opened in 2023 to global accolades, including Best New Airport Terminal in the World by Skytrax, a global aviation ratings firm.

• The AirTrain replacement project at Newark Liberty continues to progress through the planning and engineering process, with construction expected to begin in the third quarter of 2025.

LaGuardia Airport:

• The whole new LaGuardia Airport was named 2024 best U.S. airport by Forbes Travel Guide, informed by a survey of 5,000 global travel experts. LaGuardia has received prestigious honors from around the world since the completion of the completely rebuilt airport.

John F. Kennedy International Airport:

• JFK’s $19 billion reconstruction — with $15 billion in private funding — achieved major milestones, including the steel topping off at terminals 1 and 6, the construction start of a concessions overhaul at Terminal 8, and the groundbreaking for a complete rebuild of a much simpler on-airport roadway network. The first gates of the new terminals 1 and 6 are scheduled to open in 2026.

• The JFK transformation is driving record contracting opportunities for local, minority and women-owned businesses (MWBE) with more than $2.7 billion in MWBE contracts issued to date, a New York state record. Under the Port Authority’s leadership, a total of more than $5 billion in MWBE contracts have been awarded at the agency’s JFK, LaGuardia and Newark Liberty redevelopment projects.

Midtown Bus Terminal:

• The $10 billion Midtown Bus Terminal replacement project continues to gather momentum, with final federal approval issued this month. Additionally, the project received a unanimous approval vote from the New York City Council through the local zoning process known as the Uniform Land Use Review Procedure (ULURP), following the City Planning Commission’s unanimous vote to approve the project. Additionally, the Port Authority Board of Commissioners voted to approve early works construction contracts with an anticipated start date of early 2025.

PATH:

• The Port Authority launched PATH Forward, a comprehensive $430 million investment in the 116-year-old PATH system to upgrade critical infrastructure, including railcars, bridges, tracks, and switches to make the system more reliable and efficient. In addition, the program is overhauling stations at Grove Street, Hoboken, Exchange Place, and Newport.

• PATH debuted a tap-and-go payment system called TAPP, allowing passengers to pay fares at select turnstiles with a contactless debit/credit card, smartphone, or wearable device.

Bridges and Tunnels:

• The $2 billion Restoring the George program at the George Washington Bridge includes 11 different projects to restore and rehabilitate the 93-year-old bridge. The largest and most substantial project in the program – the replacement of each of the bridge’s 592 steel suspender cables – is nearing completion with just two dozen cables left.

• The Holland Tunnel continues to advance permanent repairs and enhancements to protect it from future extreme weather events.

Seaport:

• Advanced progress on the $220 million Port Street Corridor Improvement project to modernize roadway access at Port Newark’s main artery, reducing congestion and accidents while providing substantial time savings for truckers.

• Acquired full ownership of Howland Hook Marine Terminal on Staten Island from the city of New York, enabling long-term expansion of the facility, following a 2023 agreement that secured at least $200 million in private investment to add a range of capacity enhancements and sustainability upgrades.

World Trade Center:

• The Port Authority in 2024 commemorated the 10-year anniversary of the opening of One World Trade Center. The building, which is the tallest in the Western Hemisphere, has attracted a range of tenants across industries and is a central component of the rebuilt World Trade Center campus since it opened on Nov. 3, 2014.

• The World Trade Center campus continues to be a major attraction for businesses, tourists and the local community in Lower Manhattan. The widely acclaimed Ronald O. Perelman Performing Arts Center opened in late 2023 and recently celebrated a successful first year of operation, featuring critically acclaimed theater, music and cultural performances.

Sustainability:

• The Port Authority continues to advance its commitment to achieve net-zero greenhouse gas emissions by 2050 through initiatives to electrify the agency’s vehicular fleet, prioritize decarbonization of legacy infrastructure, and explore greener technologies and business practices.

• A massive solar array of more than 13,000 solar panels is being installed on the roof of the New Terminal One at JFK, covering an area equivalent to six and a half football fields. Once complete, the Terminal One solar array will be the largest in New York City and the largest at any airport terminal in the country.

• Construction is underway on a 12-megawatt solar canopy installation at the long-term parking lot at JFK, the largest onsite solar plus storage project in the history of New York state. Once operational, the solar carport project will generate electricity to help power the AirTrain and to reduce electricity costs for residents of low-income neighborhoods in Queens.

Security:

• The agency’s continued commitment to security is demonstrated by more than $1 billion allocated in next year’s budget – the agency’s largest allocation – to enhance infrastructure safety and security, including new technology and initiatives to address evolving cybersecurity threats.

• Added 109 new cadets to the Port Authority Police Department – a highly diverse class that represents the agency’s continued commitment to a police force representative of the communities that it serves.

 

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