Government Shutdown Could Strain MTA's Finances Even More

NEW YORK — The federal government shutdown could put the MTA under even more financial stress if it stretches into next month. The beleaguered transit agency stands to lose as much as $170 million in monthly reimbursements from the Federal Transit Agency because of the shutdown, which is now in its third week, according to U.S. Sen. Chuck Schumer's office.

The MTA could last a month or six weeks without the money, but would have to make "hard choices that will potentially hurt commuters" after that, the Democratic senator's office said Sunday.

"They can last for another four weeks but after that they got real trouble," the Democratic senator said. "They may have to borrow, which would increase their costs, then they would have to cut back which would be a very bad thing."

The federal cash helps pay for train cars, track work and big projects such as the Second Avenue Subway, the New York Post reported.

The looming impact comes as the MTA faces a budget deficit of nearly $1 billion in 2022 even if it implements planned fare hikes this year and in 2021.

The MTA said the federal money would be a tough loss, but did not offer details about the potential impact on commuters.

"A prolonged federal government shutdown would be bad news for customers and the MTA and we thank Senator Schumer for his leadership in fighting to stop it," MTA spokesman Shams Tarek said in a statement.

There is currently no end in sight to the second-longest shutdown in history as President Donald Trump's standoff with congressional leaders continues.

Schumer, the Senate's Democratic minority leader, and U.S. House Speaker Nancy Pelosi have refused to give any funding to Trump's border wall, which he has demanded in exchange for funding the government.

More than 50,000 workers in New York have been furloughed or forced to work without pay because of the shutdown, Schumer's office said.

The lapse could also endanger the 1.5 million people in New York City who rely on the Supplemental Nutrition Assistance Program, also known as food stamps, according to the senator's office.

(Lead image: Photo courtesy of Tim Lee)