Interborough Express 2024 Year End Update

By John Pegram[1]

Jan 05, 2025

Interborough Express (IBX) news was mixed in 2024, especially in the last two months, since my last update.[2] The best news of the year for IBX proponents was the inclusion of the IBX project in the MTA’s 2025-2029 Capital Plan, the decision to eliminate the street-running section at Middle Village,[3] and—on January 5, 2025—the start of congestion pricing. Disappointing news included the reduction in the congestion pricing toll and lack of plans for full funding of the Capital Plan.

For those of us who are interested in following and supporting IBX plan developments, it is also disappointing that the MTA is continuing to restrict information about the project. So, at the beginning of 2025, the status of the IBX project is a big question mark. This article summarizes some of what we know.

IBX and the Capital Plan

The MTA’s 2025-2029 Capital Plan includes a proposed budget of $2,750 million for the Interborough Express, which it projects as being about 52% of the project cost (not including railcars).[4] That percentage, and the MTA’s supporting comments (below), suggest that the MTA hopes to obtain the remaining amount from the federal and state government.

According to a November 14, 2024 press release from NY Governor Hochul’s office, “The Governor highlighted that potential contributions from federal, state, City and MTA sources are expected to be sufficient to fund approximately half of the [capital] plan. Governor Hochul also highlighted her full support for the MTA 2025-2029 Capital Plan and her intention to work during budget negotiations next year with federal, State legislative and City partners to close the remaining gap.”[5]

While the Capital Plan was approved by the MTA Board on September 2024, the MTA cannot implement it until it is approved by all members of a state agency, the Capital Program Review Board. On Christmas Eve, two members of their Board announced their disapproval. They are NY State Senate Leader Andrea Stewart-Cousins and Assembly Leader Carl Heastie. Their letter to the MTA explained, “The proposed Program currently faces a significant funding deficit, generally recognized to be at least $33 billion of the $65 billion proposed total subject to CPRB approval, which is a specific concern that needs to be addressed before we can approve the Program.”[6] In light of the fact that the Capital Plan is not fully funded, while that letter was disappointing, it should not have been a surprise. Now, either the necessary funding must be found or the plan cut back by the MTA.

The Capital Plan suggested the following IBX project schedule in 2025-2029:[7]

The proposed commitment timeline in the MTA’s 2025-2029 Capital Plan is:

2025 $100 million
2026 $0
2027 $200 million
2028 $0
2029 $2,450 million[8]

Because the major commitments of funds are not scheduled to occur before 2029, it still appears financially possible for the IBX project to proceed on the proposed schedule.

IBX and Congestion Pricing

While issues concerning the congestion pricing toll are well-known, the use of the toll proceeds is less well understood. The primary purpose is not to directly spend the toll income. Rather, the principal purpose of the toll revenue is to provide a revenue stream supporting long-term borrowing by the MTA for capital projects, including a share of the cost of the IBX line.

The originally planned congestion pricing tolls, including a base toll of $15, was paused by Governor Hochul in June 2024. After much back and forth, the base toll was reduced 40% to $9. The revised plan was approved by the MTA Board and Federal Highway Administration. Although there have been lawsuits seeking to stop the plan, the plan is expected took effect on January 5, 2025.

Governor Hochul’s press release announcing agreement on the reduced toll stated, “While the toll structure under this plan is lower than the tolls initially proposed, it will still enable the MTA to leverage $15 billion in bonds for the MTA’s current Capital Program over time–the same goal for the congestion pricing program.”

A little-recognized aspect of the Governor’s agreement with the MTA to reduce the base congestion pricing toll to $9 is that the MTA would be permitted to increase the base toll to $12 in 2028 and to $15 in 2031.[9]

IBX Project Timing

Here is a slide from the IBX Fall 2023 Open House Presentation, outlining steps to a final Environmental Impact Statement (EIS), which is a prerequisite to federal contributions to funding a transit project:[10]

Where do matters stand on this timeline? The MTA has not disclosed much about that.

The MTA has contracted with the consulting firm WSP USA, Inc. to conduct most of the EIS-related work. That contract extends until the end of January 2026. Monthly Progress Reports from WSP for the first year of this work, through June 2024, indicate that the “Scoping and Screening” work was being done in a timely fashion and that the preparation of a draft EIS was underway.

However, a key element in the EIS process appears to be missing. As indicated in the timeline above, an early step in the EIS process is for the proposed federal funding agency to issue a Notice of Intent [NOI] to Prepare EIS. I have not found any evidence of issuance of such a notice for the IBX EIS or the reason. WSP Progress Report #4, for November 2023, stated under Scope and Schedule Risks and Changes, “FTA delays to publication of notice of intent.”[11] Later reports, as recently as the last complete WSP Progress Report produced to me by the MTA, for June 2024, stated, “Potential for NOI to continue being pushed out by FTA.”[12] As discussed in the last section of this article, the MTA redacted (obscured) parts of the next progress report produced to me and has not yet produced more recent reports to me.

On October 29, 2024, the MTA issued an RFP for “Interborough Express Light Rail Project General Engineering Consultant Services. According to the RFP:

The Project is separated into two phases. The first phase (“Civil Phase”) will prepare the corridor to receive the light rail system and includes demolition of existing structures; utility relocation; street-work; environmental remediation; rehabilitation of existing, and construction of new, above-grade and undergrade bridges; construction of new tunnel structures and retaining walls; and repositioning of freight infrastructure. The second phase (“Light Rail Phase”) will complete the design and installation of the light rail system and incudes construction and installation of passenger trackwork, stations, a light-rail vehicle storage yard, an operations center, traction power, signals and other systems; procurement of light rail rolling stock; testing and commissioning; and all other work required to place the light rail system into revenue service.[13]

Two issues stand out. First, the work contemplated by the RFP—like the current contract for preparation of an EIS—is limited to a “light rail system.” In my opinion, it should not be so limited. Second, the RFP states: “Funding 100% FTA.” I have yet to see any public evidence of the availability of such FTA funding in the near future. The cost indicated in the RFP is “Est $ Range: $50M - $100M,” and also indicates “Contract Term:18 Months for the Base Scope of Services.” Those terms appear to correspond with the Capital Plan’s proposed commitment of $100M to the IBX project in 2025.

BQ Rail Activities

I posted 25 articles on the BQ Rail site in 2024. A full list with links is in the Archive on the website.[14] The articles receiving the most views were “Interborough Express Progress Reports”[15] and “Interborough Express Fall 2024 Update,”[16] which included the report that street-running had been removed from the IBX plans.

These articles are dependent on published information and responses to my freedom of information requests to the MTA, and—to a lesser degree—on my freedom of information requests to the U.S. Department of Transportation and the Port Authority of New York & New Jersey. Unfortunately, these agencies appear reluctant to share their documents with me and the public. In most cases, the responses are repeatedly delayed. The delays in MTA responses to my freedom of information requests increased in the latter part of 2024, which explains the drop-off in the number of BQ Rail articles. In addition, redaction (obscuring) of parts of documents has increasingly become a problem. For example, while the MTA produced WSP Progress Reports ##1-12 to me without redaction, report #13 was heavily redacted (copy attached). Compare the beginning of produced Reports #12 and #13, below:

Often, it has been necessary to file administrative appeals, some successful and some not. In a few cases, I have filed cases requesting review of non-production or redaction of requested documents by the New York courts. For example, on December 26, 2024, a judge of the NY Supreme Court ordered the Port Authority to provide to the court, for in camera [judge’s eyes only] inspection, all of the records that are responsive to my freedom of information request that it has withheld or redacted pursuant to an exemption from disclosure that it has claimed.[17] Then, the judge will determine whether the documents were properly withheld or redacted.

Best wishes to you and for transit improvements in 2025!

This article expresses the personal views of the author and does not express the views of his employer, or any client or organization. The author has degrees in law and physics, and has taken several engineering courses. After five years of work as an engineer, he has practiced law primarily in the field of patents for over 50 years, dealing with a wide variety of technologies. He is a life-long railfan and user of public transportation in the United States, Europe and Japan.