Port Authority of NYNJ proposes $9.4 billion budget for 2025

• $3.6 Billion Capital Funding Included to Advance Major Projects Such as the Redevelopment of John F. Kennedy International and Newark Liberty International Airports, Replacement Projects for AirTrain Newark and Midtown Bus Terminal
• Agency Directs More than $1 Billion to Bolster Security Capabilities Including Cybersecurity and Additional Port Authority Police Department Resources
• Proposal Includes Newly Created Reduced Fare for Disabled PATH Riders and 25 Cent Increase in 2025 Toll Rates for E-ZPass Users Beyond Automatic Annual Inflation Adjustment
• Two Toll Adjustments to Incentivize Non-EZ Pass Users to Enroll in E-Z Pass and to Incentivize Proper Use of E-ZPass Transponders
• Public Review and Comment Period Now Underway Through Dec. 11 in Preparation for Commissioner Authorization Vote at December Board Meeting

The Port Authority of New York and New Jersey today released the agency’s proposed budget for 2025 of $9.4 billion, which includes $3.6 billion of capital infrastructure investment spanning the redevelopment of the region’s major airports, the replacement of the outdated Midtown Bus Terminal, the once-in-a-lifetime top-to-bottom rehabilitation of the George Washington Bridge, the modernization of the roadway network into the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 a proposal to add $0.25 to the 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 for the agency and inflationary pressures, while supporting the largest Port Authority capital investment in history, with remarkable progress at the agency’s bridges, tunnels, PATH, seaports and airports. In addition, the proposed 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 proposed $3.6 billion capital budget will target spending more than $750 million higher than 2024 capital spending as the agency completes 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 the implementation 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 proposed 2025 capital spending 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 rail services or Amtrak.  
  

• The remaining projects in 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 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 speeds, 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.  
  

• Planning on a new express bus service for LaGuardia Airport, as well as the Port Authority’s share of service and reliability improvements to MTA New York City Transit’s free-to-ride Q70 LaGuardia Link Select Bus Service.  
  

• Support of campus-wide state-of-good-repair needs at the World Trade Center, and upgrades of existing river water pump station. 
  

• 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 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.  
  

• Rehabilitation of two berths at the seaport for the maintenance of critical port infrastructure needed to ensure the continued operation and competitiveness of the East Coast’s busiest seaport and the nation’s second-busiest port for loaded containers.  

 

“As this agency has done for more than 100 years, we are moving forward by planning – and delivering – infrastructure that can withstand the test of time and other changes from constantly evolving political and physical landscapes,” said Port Authority Chairman Kevin O’Toole. “The lessons we have learned from recent challenges, from the economic and lifestyle changes wrought by the pandemic to the ever-increasing and devastating threats from climate change, have shaped our planning both for this agency and for this region. This budget reflects our response to those challenges and how we, as an agency, will move up and on to keep this region moving.”  

 “Unprecedented, world-class transformations of the region’s infrastructure have now become the new normal at the Port Authority, from LaGuardia’s worst-to-first makeover, JFK’s comprehensive redevelopment, Newark’s spectacular Terminal A and a top-to-bottom renewal for the busiest vehicular bridge in the world,” said Port Authority Executive Director Rick Cotton. “We have every intention of continuing this extraordinary momentum across other ambitious, much-needed projects, necessitating sustained investment and reliable revenue to ensure they can reach their full potential and benefit the region for decades to come.”

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 are proposed by the agency for implementation in 2025. The proposed 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 operating 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 ADJUSTMENT PROPOSALS

The Port Authority is posting for public comment a new proposed increase of $0.25 for autos, motorcycles and trucks to be implemented effective Jan. 5, 2025.

The proposal posted for public comment also recommends that the Board authorize $0.25 increases above the annual automatic inflation-based toll adjustments for autos and trucks in each of the next three years. The proposed adjustments preserve lower rates and discounts, including the Staten Island Bridges Plan.

Incentivizing E-ZPass Usage and Proper Positioning of Transponders

The proposals posted for public comment also contain two changes to existing toll rates, that will affect only 10-15 percent of transactions:

• to incentivize enrollment in the E-ZPass program by drivers who are not yet enrolled by increasing the Toll-by-Mail (TbM) rate to a level consistent with the two-way TbM rate charged by the MTA at its bridges and tunnels, ($22.38 for autos). The agency has proposed delaying the implementation date to July 2025 and engaging in an intense communications campaign to urge drivers to enroll in E-ZPass to take advantage of lower E-ZPass rates.

• to incentivize drivers who have enrolled in the E-ZPass program but whose transponders are not being read by the E-ZPass overhead gantry equipment, to ensure proper positioning of their transponders by introducing a new mid-tier toll rate for all classes ($18.72 for autos). The agency has proposed delaying the implementation date to July 2025 and engaging in an intense communications campaign to urge drivers to enroll in E-ZPass to take advantage of lower E-ZPass rates.

Eliminating Truck Volume Discount

Another proposed change would affect less than 0.5 percent of truck accounts. This proposal would eliminate 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 is also proposed 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.

The Port Authority is committed to thoroughly soliciting public input as it considers these proposed toll and fare changes, as well as to the agency’s proposed budget for 2025. To ensure the public has ample opportunity to share its views, four public hearings have been scheduled at multiple locations across the region and at varying times of day. Members of the public are encouraged to attend the hearings below in person or virtually or submit comments for either the toll and fare changes or the proposed budget, or for both, through the Port Authority website: 

 

Date	Location
Dec. 3, 7 p.m.	Hilton Hasbrouck Heights/Meadowlands, 650 Terrace Avenue, Hasbrouck Heights, NJ
Dec. 4, 9 a.m.	4 World Trade Center, 150 Greenwich Street, 23rd floor, New York, NY
Dec. 5, 9 a.m.	2 Montgomery Street, 3rd floor, Jersey City, NJ
Dec. 5, 7 p.m.	4 World Trade Center, 150 Greenwich Street, 23rd floor, New York, NY

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 $2.3 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 the final environmental impact statement signed last month and final federal approval expected later this month. The project is also in the final stages of 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.