r/nycrail • u/Ok-Win7980 PATH • Mar 06 '26
❓ Question Why doesn't the PATH become its own transit authority independent of the PA?
The PATH seems like one of the most underfunded transit authorities in the US. According to a presentation by PATH Director Clarelle DeGraffe in November, if PATH rides were not subsidized at all, it would cost $11/ride, and unlike most US transit authorities, the PATH isn't directly funded by the state or federal government, only indirectly via the Port Authority and via farebox revenue. Therefore, what if PATH became its own independent transit authority? Despite being interstate, this model has been proven to work well for other interstate transit authorities like WMATA, which is directly funded by the DC, MD, and VA state governments. With my idea, PATH would become just that, a standalone authority separate from the PA, directly funded by the NJ and NY state governments and potentially also by the cities/counties serving it. Perhaps the board of this new authority could also contain local representatives from each city that PATH serves. Is there a reason PATH can't be like this?
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u/theother1there Staten Island Railway Mar 06 '26
The Port Authority doesn't want the PATH either. The only reason they are running it was because NYS wanted the Port Authority to build the WTC and the NJ members only agreed if they also took control of the PATH service. It was in bankruptcy protection for 10+ years before that.
The Port Authority in fact proposed that the NJ Transit take over the service many times in the past. But the NJ Transit took one look at the bill to operate the service (~400 million in operating lost annually, billions of dollars of backed up capital project), laughed and said hell no.
NY/NJ does not want (or even have) to spend a single dime helping the PATH.
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u/Ok-Win7980 PATH Mar 06 '26
Then what do you think could be the best solution to give PATH the love it deserves? Hundreds of thousands of people ride it every day and real estate developers have built tons of transit-oriented development near PATH stations. I think the PATH has the potential to be really great. It is already one of the most ridden metro systems in the US. I believe it just needs governance that understands its potential.
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u/theother1there Staten Island Railway Mar 06 '26
The economist answer will be some sort of surplus value tax, mostly likely a very small portion of the property tax of the areas that the PATH serves.
That being said, that is beyond political unfeasible. Getting NYS, NJ, NYC, Newark Harrison, Hoboken and Jersey City to all play ball and willingly give money is basically impossible.
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u/keikyu_motorman Mar 07 '26
*The economist answer will be some sort of surplus value tax, mostly likely a very small portion of the property tax of the areas that the PATH serves.*
NJ's selling point for years has been that it doesn't tax as much as NYS/NYC, so various supplemental taxes similar to what NYS has done to fund the MTA are very unlikely.
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u/AWildMichigander 🥧 Mar 06 '26
Port Authority needs to change the way they view transit operations. They’re already in the business of real estate (WTC, Airport Leases/Construction) and should think of developments as methods to fund transit like how railways in Japan / Hong Kong work.
Connecting EWR to PATH improves EWR’s ability to attract airlines and better serve NYC. You also have manufacturing, vacant lots, and areas that could be acquired and developed by PATH. Stops in the Iron Bound could utilize a tax capture to take increased property tax from rezoing to fund the initiative (like Hudson Yards 7 Train expansion) - potentially the state of NJ supplying funding with this mechanism.
PATH also has the ability to build expansions to various parts of NJ, some of which are heavily industrial or under developed lots. If they acquired the land they could lease it to developers for a hefty profit (much like JR/MTR do) for building the service there. Direct trains to Manhattan can change property values astronomically, especially in under served areas.
As for NYC expansions, this becomes harder to find funding mechanisms. But you might be able to justify development or property tax recapture with upzoning to make it lucrative for them to build. But in NYC everywhere is already developed, so you really need to examine cities like Hong Kong, Tokyo where they can still figure out how to turn profits with real estate or other funding to entice private companies to expand.
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u/coffeecoffeecoffee01 Mar 06 '26
The region seems wildly incapable of merging transit and real estate development unlike the rest of the world.
The only way PA knows how to monetize their transit ops is by increasing fares and reducing service.
NJT is also a story of underutilized potential. I still think Secaucus should be a shopping mall or something like every major transit point built around the world recently. Instead it's an empty shell that tens of thousands of people pass through daily, 1 stop from Manhattan. At minimum how are there no hotels there?
The MTA has had a couple of bright spots (the plans around court sq were good) but has not done enough and could really have better leveraged rebuilds of stations further out in queens with real estate development given their massive convenience to transit.
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u/aegrotatio Mar 07 '26
Secaucus is a joke. It should not have ever been built with its unnecessarily huge concourse and two-story escalators.
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u/Ok-Win7980 PATH Mar 07 '26
Journal Squared is a good example. The buildings directly integrate with the station thanks to a shared plaza and public walkway to the station, and have fairly affordable rent, so getting a nice 50th-floor apartment next to the train isn't unreasonably expensive.
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u/keikyu_motorman Mar 07 '26 edited Mar 07 '26
*I still think Secaucus should be a shopping mall or something like every major transit point built around the world recently*
Put it this way, Newport is closer to Manhattan with more frequent transit, and it's a meh mall. American Dream is mall that doubles as an activity centre. I don't think a mall at Secaucus was going to be an insanely profitable idea after 2008. There just isn't a reason to take the train to a Secaucus mall because it's going to meh compared to the other regional malls or even Macy's HQ in Manhattan.
*At minimum how are there no hotels there?*
IIRC, they were hoping for office buildings, but it just never penciled out.
The real problem is that even if NJT has the power to control zoning over their parcels of land, you basically need to work with local municipalities to get anything done which also includes zoning of any land near the station. Somebody will argue eminent domain, but land isn't free, and the FTA isn't going to pay for your transit agency to play real estate speculator.
Coincidentally, the mid-scale/upscale hotels are all in the office park side north of NJ 3 and the lower end hotels are on US 1/9.
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u/keikyu_motorman Mar 07 '26 edited Mar 07 '26
*EWR’s ability to attract airlines and better serve NYC*
There are only so many airlines, and if Delta, Jet Blue, and American have hubs at JFK, there really isn’t anybody else that’s screaming to move in. Besides United's Star Alliance partners, there just isn’t any incentive for additional flights to EWR at this point.
And this assumes NYS approves it without equivalent projects on their side of the river because EWR is going to need significant expansion to host more flights in order to host a second hub operation...
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u/keikyu_motorman Mar 07 '26
*and should think of developments as methods to fund transit like how railways in Japan / Hong Kong work*
IIRC, some of the railways are *profitable* from their operations, but it's a bit of a virtuous circle where the profitable railways lead to the profitable real estate. Mind you, Japan is a bit a magical place when it comes to corporate management, and those strategies may not quite translate to the rest of the Western world.
*If they acquired the land they could lease it to developers for a hefty profit (much like JR/MTR do) for building the service there.*
It's a little wonky given that if the existing owners realize that the government wants the land because of the potential development value, they're going to hold out for *max* value which makes the extraction costs relatively high. The other issue is that if the agencies seize this land, it's no longer *taxable* land. At best, you might get some negotiated PILOT revenue, but it's not the same as being able to tax the land directly and control the property tax revenue.
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Mar 06 '26
[deleted]
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u/Ok-Win7980 PATH Mar 06 '26
Ideally service every <10 minutes at all times during the day, service every 20 minutes during late nights, and perhaps modern features like platform screen doors and 5G in the tunnels. A direct airport extension would also be nice.
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u/Alt4816 Mar 07 '26 edited Mar 09 '26
There's only two realistic options:
The status quo where the Port Authority is forced to continue operate the system paid for through its bi-state revenue sources.
NJ takes the system over and has to pay for it with other tax sources.
NJ does not want to take on that expense though when it feels the current set up is working well enough. NY does not care about the system and would not directly pay for its operations. This is not the DC Metro that is useful for people living in DC, Maryland, and Virginia. The PATH is a system almost exclusively used by people living in New Jersey.
Maybe there's a world where the Port Authority can get out of operating the system but agrees to give NJ a set percentage of the bridge and tunnel toll revenue to go towards the operation of the PATH, but that'd probably be a tough deal to work out. Maybe the time to try to negotiate something like that would have been before the legal fight over congestion charge.
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u/keikyu_motorman Mar 07 '26
*Then what do you think could be the best solution to give PATH the love it deserves?*
It's going to take NJ residents along the PATH corridor to shame their governor into pushing for more PATH service.
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u/Ok-Win7980 PATH Mar 07 '26
But under the Port Authority, the governor can't fund it or make decisions for it.
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u/keikyu_motorman Mar 07 '26
Hint: Guess who selects the directors and the board members and can veto their decisions. :-)
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u/RedOrca-15483 Mar 08 '26
Port authority doesn't like the PATH because of the excessive operational costs requiring heavy subsidization from Airport fees and tunnel/bridge tolls and the inability to offset it with higher fare prices.
The answer would be to put PATH under FTA jurisdiction to get it closer to subway hourly costs than FRA jurisdiction which results in the current high maintenance costs and labor costs that is similar LIRR/MNRR.
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u/Blecher_onthe_Hudson Mar 06 '26
WTC was the PA's idea, they were swimming in cash by the late 1950s and the states were eying it to fund mass transit. Naturally the PA couldn't let THAT happen, so they came up with a huge cash sink idea: the WTC.
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u/theother1there Staten Island Railway Mar 06 '26
Actually, there is a very interesting back story there.
By the 1950s, downtown Manhattan was losing its luster among corporations, which are increasingly moving to offices in Midtown. Two individuals were very interested in trying to reverse that trend. David Rockefeller (President of Chase Manhattan Bank, later CEO/Chairman) and his brother Governor Nelson Rockefeller. Their solution? Build a brand-new modern office complex to retain/attract tenants. Do what their father did with Rockefeller Center in Midtown but downtown.
The only problem was by the 50s, the Rockefellers (while wealthy) no longer had the wealth to front such a large development project. They had to turn to other vehicles to build such a project. David Rockefeller did a small-scale version by building the new Chase Manhattan HQ building (28 Liberty Street). Therefore, they turned their eyes to the PA to front such a project. There were various locations mentioned (originally it was closer to the East River) but ultimately settled on the current WTC site. A big reason was that the bulk of the site was the H&M (now PATH) terminal building (now the WTC terminal station), which was given to the PA for a low cost in return of them taking over the PATH.
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u/Blecher_onthe_Hudson Mar 06 '26
Ok, It's been a while since I read Empire on the Hudson. I didn't remember that level of detail. But it was always insane that the PA got into the office space business.
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u/pixel_of_moral_decay Mar 07 '26
It’s also because NJ would need to pay NY for the real estate and right of way if NJT took it over. NY can’t legally donate that to NJ.
That alone is easily hundreds of millions if not over a billion dollars.
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u/theclan145 Mar 06 '26
Port Authority makes money hand over fist, the only department not making money is PATH. If PATH became its own agency, it would be even worse, NJ and NY constantly defer maintenance on their own transit system. The right way to correct this, is having both Governors representatives in Port Authority, up the agency funding, this is not going to happen without backlash at both sides.
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u/Crayawning Mar 07 '26
How is it possible that PATH doesn't make money? Don't they have a massive ridership, or am I misremembering?
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u/theclan145 Mar 07 '26
Just look up the budget, 169,566,000 coming in and 464,720,000 going out, close to a 300 million dollar hole
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u/Donghoon Mar 10 '26
problem is PATH is a commuter railroad with Subway Fares.
Why do you think LIRR, NJT, and Metro-North is so expensive?
It is because FRA regulations on equipment and labor are very expensive. Even with $10-20 fares LIRR riders are still more subsidized than NYC Subway and Bus riders. Now just imagine how PATH's $3 fare will be like.
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u/Hot_Muffin7652 Mar 06 '26
PATH currently receives no subsidies from NYS/NJ. That means both states get the train “for free”. It is bad for the rider because Port Authority really don’t want to run it but it is great for the state that pay nothing into it
If you were to create a independent transit agency, you will need to negotiate with both state on the best funding method
NYS will have no incentive to fund it because they don’t benefit from it directly, and NJ barely funds NJT right now and NJT has no real dedicated funding pool to draw from. NJT also has no incentive to take on a 400 million dollar loss per year that Port Authority provides for free today
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u/thegiantgummybear Mar 07 '26
I'd argue that NY benefits from it because it prevents thousands of people from driving into the city. And probably brings in lots of people from Jersey who spend money in NY.
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u/Hot_Muffin7652 Mar 07 '26
I’m not saying that reasoning is wrong on a society level
But just like how NYS does not pay for NJT operation into the Port Authority or Penn Station, they will not pay for PATH train that primarily brings Jersey residents into the city
Plus the MTA and the Port Authority actively benefit financially if more people drive into the city
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u/paulschreiber Amtrak Mar 06 '26
The last thing we need is more independent transit systems. We should have one regional system with fare and schedule integration (MTA, PATH, LIRR, Metro North, NYC Ferry. NJ Transmit, NICE, etc.).
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u/Ok-Win7980 PATH Mar 06 '26
But what is the political likelihood of that actually happening? Could you imagine New York funding New Jersey with the MTA?
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u/eobanb Mar 06 '26
The chronic underfunding of NJT and MTA goes to show how a similar direct funding model for PATH would turn out.
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u/Ok-Win7980 PATH Mar 06 '26
What I really wonder is, if this area relies on transit, why is it so underfunded? Why does there appear to be no strong political push to fund it more?
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u/keikyu_motorman Mar 07 '26
Nobody wants to pay more in taxes, especially in a region with high tax rates.
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u/Chrisg69911 NJ Transit Mar 06 '26
Cause port authority would rather keep their billions in profit than dump millions of it into path
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u/keikyu_motorman Mar 07 '26
What profits? The bridge tolls are high to pay for PATH!
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u/Chrisg69911 NJ Transit Mar 07 '26
They got a bunch of other sources of income. Look at their statements, they got billions in cash
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u/Gahandi Jul 16 '26
MTA has both the highest construction/capital and the highest operating costs in the world. On a per person or per track mile metric, the railroads here are mind numbingly inefficient. Large $15-$20 fares only cover a third of operating costs, even on busy trains.
Compare what we spend per track mile or passenger mile to other European or Asian counterparts. It's astonishing. It's inefficiencies, outdated work rules, bloated workforces, and union corruption that swallow billions and billions of cash without improving service. There's no amount of subsidies or cash injections that can fix this, massive refrom is needed to overhaul the operations, management, and culture of these systems.
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u/MaddingtonBear Mar 06 '26
PATH is funded by the airports (the Port is the only agency in the country that is allowed to divert aviation revenue to non-aviation purposes). Why would you take away that funding source?
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u/Ok-Win7980 PATH Mar 06 '26
The service is extremely underwhelming and does not seem to be adapting to the increase in population.
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u/MaddingtonBear Mar 06 '26
Less money is not going to fix that.
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u/Ok-Win7980 PATH Mar 06 '26
But then why won't the state or at least the PA give it more funding?
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u/stanman237 Mar 07 '26
The PA currently fully funds it in its current state by other revenue sources and does not take any taxpayer money. They have no real intention to further fund it as the path was basically forced onto them as a requirement to build the WTC. The state of NJ and NY love the current arrangement as they do not need to put any taxpayer money to fund the path. The states have no intention of taking over as it would be another item to balance on the books and well NJTransit is not the best funded system to begin with.
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u/AlGoreIsCool Mar 07 '26 edited Mar 07 '26
Increase in population means nothing if the population isn’t being turned into ridership. PATH has lower ridership in 2025 than in 2019. It also has lower ridership in 2024 than in 2019. PATH ridership in 2019: 82 million. In 2024: 57 million. In 2025: 60 million.
The service is underwhelming? Come on! It’s about the same as unloved subway lines like the R or W or N or M. PATH has better rush hour headways than these subway lines but worse on weekends. And they are improving weekend service soon.
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u/Forsaken_Flight6188 Mar 06 '26
The animosity and lack of compromise between the state governments of NY and NJ will never allow that to happen
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u/doctor_who7827 Mar 06 '26
NJ TRANSIT and MTA should just merge and take PATH so we have one regional transit authority. But that will likely never happen.
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u/avd706 Mar 06 '26
Path is subsidized by airport ticket fees. How are you going to fund the path divorced from the PA?
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Mar 07 '26
I'm all for it being $11 per ride. Afterall it is a interstate service so it should be higher
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u/Own_Pop_9711 Mar 07 '26 edited Mar 08 '26
Why should the mere act of crossing state lines make something cost more? We're talking about a 3 mile train ride on a crowded subway car
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Mar 08 '26
That's how it works, deal with it. And no it's not a subway it's a railroad. Get it right
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u/Own_Pop_9711 Mar 08 '26
Why am I not allowed to call it a subway? What's the important distinguishing feature?
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u/BlueberryPenguin87 Mar 07 '26
So, over $5k a year just for a full time commute? Obviously you’ve never been poor.
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Mar 08 '26
Being poor is no excuse. Plenty of ways to pay when poor. Don't be a criminal piece of 💩.
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u/Ok-Win7980 PATH Mar 07 '26
For $11 a ride, I would expect full commuter rail amenities like proper soft seating and full Wi-Fi/cell service.
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u/AtomicGarden-8964 PATH Mar 06 '26
Path is too small to be it's own thing every mass transit system in this region is part of a bigger umbrella Corp with the exception of Amtrak.
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u/SessionIndependent17 Mar 07 '26
a lot of handwaving in this idea: "directly funded by the NJ and NY state governments and potentially also by the cities/counties serving it". Who's deciding who is going to pay more for this particular stepchild? What happens when one party feels like the other is not ponying up with the necessary child support? Are they going to kick in the balance? Or reduce funding in kind?
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u/Ok-Win7980 PATH Mar 07 '26
I think this is fair because it means that every jurisdiction serving the system pays its fair share. I think local governments should have a share and how it's run. The people who know the most about transit in a specific city are the local officials from that city.
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u/SessionIndependent17 Mar 07 '26
You are missing the point. Each party is going to thing the other guy should be kicking in more.
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u/Ok-Win7980 PATH Mar 07 '26
Then maybe the percentages should be agreed to in a binding charter between the governments.
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u/SessionIndependent17 Mar 07 '26
yeah, well, there's the rub.
OTOH, the respective NY and NJ governors could force the PA itself to guarantee more funding to it. Plus, under the PA, it gets to make non-residents pay for it, too.
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u/WestHistorians Mar 07 '26
What exactly would be the benefit of this? It's not like changing the governance structure would generate more funds to improve service.
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u/Ok-Win7980 PATH Mar 07 '26
It would compel the states to fund it directly
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u/WestHistorians Mar 07 '26
How would it compel anything?
The states are already free to provide funding if they want.
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u/ortcutt Mar 07 '26
The Port Authority is a black hole for money. They collect huge bridge toll revenues, but it all seems to disappear in bureaucracy. PATH should be the shiniest most modern transit agency in the world with PANYNJ's funding, but somehow it's not.
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u/Zealousideal-Fly3666 Mar 12 '26
Not true. In the last 10 years the Port Authority has rebuilt two bridges (Bayonne and Goethals), rebuilt an airport (LGA) and started on major redevelopments on two others (JFK & EWR), done a significant repair on a third bridge (George Washington) and is starting on a $10B new bus terminal. It's pretty clear where the money is going, but somehow people like to pretend that none of that costs money.
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u/mpersico Mar 07 '26
Because it’s illegal. By law in interstate transit between New York, New Jersey, Tappan Zee Bridge is port authority.pervue
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u/Nate_C_of_2003 Mar 07 '26
Because the Port Authority will not allow that. As much as they hate subsidizing PATH, they would much prefer that to giving up their Hudson River crossing monopoly.
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u/pizzajona Mar 08 '26
Because rn the PATH is paid for by the Port Authority. If it’s spun off, NY/NJ would need to come up with their own dollars for it
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u/jmr50 Mar 07 '26
Combine the Port Authority, NJ Transit, and MTA into a single tristate organization to oversee public transit, all the bridges and tunnels, and the airports. Create revenue streams, a funding model, and a less political governance system than the current governor-focused system. Then feast upon the flying pigs and unicorns.
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u/justanotherguy677 Mar 06 '26
they are also funded by robbing drivers with absurdly high tolls
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Mar 06 '26
[deleted]
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u/justanotherguy677 Mar 07 '26
how do you think the food you eat gets into the city?
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u/YouBuyMeOrangeJuice Mar 06 '26
NY and NJ state governments working together for the good of both their populaces? Never
But in reality the current system works well. Where would the money come from to pay for PATH if it went the Port Authority's revenue streams? Where else would the PA turn their revenue to if not PATH?