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Federal Government Threatens NYC MTA Funding Over Crime Concerns

Federal Government Threatens NYC MTA Funding Over Crime Concerns Federal Government Threatens NYC MTA Funding Over Crime Concerns
Photo By: Nic Y-C

New York City’s Metropolitan Transportation Authority (MTA) finds itself at odds with the federal government as U.S. Transportation Secretary Sean Duffy has issued a stern warning: clean up subway crime or risk losing billions in federal funding. In a letter to MTA officials, Duffy laid out a series of demands aimed at addressing what he called an “unacceptable” trend of violent crime, fare evasion, and public safety issues within the transit system.

The Federal Ultimatum

Duffy’s letter, sent on Tuesday, demanded that the MTA provide a detailed breakdown of its plans to combat crime, prevent assaults on transit workers, curb subway surfing, and deter fare evasion. The letter also requested data on past incidents, expenditures on safety measures, and strategies for improving passenger security.

“The trend of violent crime, homelessness, and other threats to public safety on one of our nation’s most prominent metro systems is unacceptable,” Duffy wrote. “After years of soft-on-crime policies, our Department is stepping in to restore order.”

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He emphasized that federal tax dollars should contribute to a “crime-free commute” and warned that failure to comply could result in the withholding of billions in federal funding.

MTA Pushes Back, Citing Crime Reduction Successes

The MTA quickly responded to Duffy’s letter, with Chief of Policy and External Relations John J. McCarthy stating that the agency has been actively working alongside the NYPD to address safety concerns.

“We are happy to discuss with Secretary Duffy our efforts, alongside the NYPD, to reduce crime and fare evasion,” McCarthy said. “The good news is numbers are moving in the right direction: crime is down 40% compared to the same period in 2020 right before the pandemic, and so far in 2025, there are fewer daily major crimes in transit than any non-pandemic year ever. Moreover, in the second half of last year, subway fare evasion was down 25% after increasing dramatically during COVID.”

The Shadow of the Congestion Pricing Battle

While Duffy’s letter did not explicitly mention congestion pricing, many observers see the funding threat as part of a broader power struggle between the federal government and New York’s state-run transit agency. The MTA is currently engaged in a legal battle to preserve its congestion pricing plan, which began in January. The program is expected to generate $15 billion for subway modernization and accessibility upgrades, but the Trump administration has expressed opposition to the initiative, with threats to block it entirely.

Governor Kathy Hochul and MTA officials have filed a lawsuit to keep congestion pricing in place. “It’s the right thing to do for New York to continue it, but it’s also very basic litigation reality,” MTA CEO Janno Lieber said. “When you have a dispute, the status quo stays unless one party gets an injunction to change it while you’re resolving the dispute.”

The legal battle has put additional pressure on the MTA, which relies heavily on federal support. The agency is seeking $14 billion from Washington for its next five-year capital budget, and losing those funds would significantly impact planned improvements.

Is Crime in the Subway System as Bad as Duffy Claims?

While concerns over crime in the NYC Subway System are not new, the data presents a more nuanced picture than the crisis Duffy’s letter suggests. According to MTA statistics, subway crime has been declining, and much of the relevant crime data is already publicly available. While fare evasion remains a persistent issue, the agency’s crackdown efforts appear to be making progress.

Duffy’s letter requested statistics on transit worker assaults, fare evasion, and the number of passengers pushed onto the tracks. While no one denies that transit safety is a serious concern, critics argue that threatening to cut federal funding could do more harm than good, potentially limiting the resources available to improve security.

What Comes Next?

As the MTA navigates this federal standoff, transit riders remain caught in the middle. If funding is withheld, critical modernization efforts, safety initiatives, and accessibility upgrades could be jeopardized. Meanwhile, the legal fight over congestion pricing continues to add another layer of uncertainty to the MTA’s financial future.

For now, the agency insists that progress is being made in reducing crime, and it remains to be seen whether Duffy’s threats will materialize into actual funding cuts. With billions of dollars at stake, the coming weeks could be pivotal in determining the future of New York City’s transit system and the balance of power between federal and state transportation authorities.

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