AOC, Schumer Hail $225M In Taxi Medallion Debt Relief For Drivers

NEW YORK CITY — More than 1,000 New York City taxi drivers — and counting — no longer will have their dreams driven down by crushing medallion debt, in a milestone celebrated by the city's biggest political leaders.

Standing shoulder-to-shoulder with taxi drivers Friday on the steps of City Hall, Rep. Alexandria Ocasio-Cortez, Senate Majority Leader Chuck Schumer and Mayor Eric Adams announced that more than $225 million in loans to taxi drivers have been closed.

And those debts have been erased fast — the Medallion Relief Program started using federal money in August to close medallion debts that, for scores of drivers, totaled in the hundreds of thousands of dollars, officials said.

"This is New York at its best," said Ocasio-Cortez.

"It really demonstrates what is possible when we don't give up and when government and when all of us center working people at the core of our work."

The milestone helps reverse a long-standing crisis for taxi drivers.

Back in the early aughts, lenders sold drivers medallions at artificially inflated prices that saddled them with massive debts as Uber and Lyft took off in the city.

The debts drove many drivers into dire straits, with many committing suicide, especially in 2018.

Lawmakers took note. They started to craft programs at the city level and line up federal funds to provide relief for drivers.

Schumer, who is the son of a cab driver, recounted how he helped line up $6 billion in COVID-19 relief for the city. He said he told former Mayor Bill de Blasio that money should be used to help medallion owners, and even got involved in negotiations with Marblegate Asset Managementhow to deal with the debt.

"They're still paying a debt, but a debt they can with," he said.

Adams said more than 3,000 medallion owners now have their loans written down to a maximum of $175,000, with monthly payments capped at $1,234.

"This puts money back in their pockets, food back on the table, college tuition back for their children,” he said. “It allows them to wake up from the nightmare that they were no longer part of the American dream.”

The program covers debts lent by Marblegate Asset Management, and officials said it could soon cover other lenders. Eligible medallion owners have until Oct. 7 to apply for closings, officials said.