September 30, 2026
Governor Kathy Hochul today announced that a new report presented at September’s Metropolitan Transportation Authority (MTA) board meeting demonstrates the $1 billion price hike caused by the Trump Administration’s tariff policy to the MTA’s plans to upgrade its rolling stock by purchasing new subway cars, commuter rail cars and buses. Following this report, the Governor wrote directly to U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Ambassador Jamieson Greer to request exemptions to transit rolling stock purchases from the current tariff regime. The MTA is in the midst of a generational upgrade to its fleet, with $23 billion committed to purchase thousands of new vehicles, an investment that will support thousands of New York jobs at companies that manufacture these vehicles as well as companies that make the components required to build them. “Donald Trump’s reckless trade war does more than just raise prices for New York families, it severely threatens government’s ability to deliver on big, ambitious projects,” Governor Hochul said. “New York’s historic investments in mass transit include plans for the largest improvement to our rail and bus fleet in history, but Trump’s tariffs have created a $1 billion tax on transit and put these improvements at risk. Our entire region depends on the MTA to get around, and this planned investment promises to support thousands of good New York jobs; these reckless tariffs must end now.”
The MTA’s most recent generation of subway cars, the R211s which run on the lettered subway lines and the Staten Island Railway, are assembled in Nebraska and Yonkers. More than 75 percent of their components were made in the U.S.A. — well above the “Buy America” threshold for transit agency procurements required by the federal government. But modern railcars require some imported parts for which American manufacturers have no domestic alternative. Current tariffs on specialized components required to build rolling stock dramatically dilute the value of the MTA’s 2025-29 capital plan. The $1 billion in potential increased costs could instead be used to purchase most Metro-North coaches; 150 new M9-A rail cars to reduce crowding on the Long Island Rail Road; nearly 1,000 new buses; or more than 250 subway cars on the 1, 2, 3, 4, 5 and 6 lines. MTA Chair and CEO Janno Lieber said, “As the MTA keeps breaking ridership records, our investments in the next generation of rolling stock become more important than ever. New subways, buses and railcars are needed to give our riders the service they deserve. It’s time for our partners in Washington to let us support American workers and responsibly spend taxpayer dollars.”
MTA Rolling Stock Program Chief Jessie Lazarus said, “An investment in rolling stock is more than just an investment in a more modern, comfortable ride. It’s an investment in American workers. The MTA is committed to securing maximum value from our capital program, and that means speaking honestly and candidly about the impact of policies that dilute New York’s spending power.”
State Senator Jeremy Cooney (D, Rochester) said, “Thousands of New Yorkers rely on the services provided by the Metropolitan Transportation Authority each day. These upgrades can’t wait. This $1 billion federal tariff risk means job opportunities are placed on hold and New York’s infrastructure doesn’t receive the full potential that the MTA’s 2025-29 capital plan offers. I’m proud to stand behind Governor Hochul in ensuring that New York’s transportation system moves forward.”
Governor Hochul’s Nation-Leading Actions on President Trump’s Tariff Policies
Since President Trump first implemented his chaotic and harmful tariff policies, Governor Hochul has been on the frontlines demanding money be returned to hardworking New Yorkers and small businesses. Earlier this year, the Governor sent a letter calling on the U.S. Department of Treasury to immediately refund $13.5 billion in tariff payments to New Yorkers, and has held roundtables across the state with local business leaders highlighting the impacts that tariffs have had on their businesses. In August, Governor Hochul, New York Attorney General James and a coalition of other states sued to halt illegal tariffs imposed under the Trade Act. In February, the Governor was part of a major United State Supreme Court ruling outlawing tariffs imposed by the Trump administration under the Economic Powers Act (IEEPA). As part of the FY27 Enacted Budget, Governor Hochul launched a $30 million tariff relief program for agricultural producers in the state to help those who rely heavily on the forces of international markets. The Governor’s tariff relief program will provide direct payments of a minimum of $1,000 and a maximum of $25,000 to eligible producers.
