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Port Authority of N.Y.-N.J. proposes $10.3 billion budget
Plan includes upgrades to the region’s bridges, airports, rail and bus terminals
Vehicles cross the George Washington Bridge from Fort Lee, N.J. (Michael Nagle/Bloomberg)
Key Takeaways:
- The Port Authority is proposing a $10.3 billion 2027 budget, with about $4 billion for capital projects at JFK, Newark, PATH and the George Washington Bridge.
- The agency’s $45 billion, 10-year capital plan is about 22% larger than its previous plan, largely because of higher construction and materials costs.
- The Port Authority expects to issue $1.1 billion in new bonds to help fund the budget, while proposing no new toll, fare or fee adjustments.
The Port Authority of New York and New Jersey is proposing a $10.3 billion budget for 2027 to help finance upgrades to the region’s airports, rail and bus terminals, and bridges.
About $4 billion of the budget would be earmarked for capital spending, including the ongoing overhaul of Terminal 1 at John F. Kennedy International Airport and planning and design activities for a new Terminal B at Newark Liberty International Airport.
Funding would also go toward continued improvements of the PATH rail system and George Washington Bridge.
Roughly $4.5 billion would be for operating expenses, $1.7 billion for debt servicing, and $100 million for deferred expenses.
The new budget does not introduce any new toll, fare or fee adjustments.
The budget will help finance the Port Authority’s $45 billion, 10-year infrastructure plan, which is roughly 22% larger than the prior capital plan that ran from 2017 to 2025, an expense largely driven by a higher cost of construction and materials.
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“We’re facing an inflationary environment above the long term inflationary goal, so we took that into consideration in developing this budget,” Libby McCarthy, chief financial officer for the Port Authority, said at a Nov. 12 board meeting.
In order to fund the budget, the Port Authority anticipates selling $1.1 billion of new bonds, according to McCarthy.
The $10.3 billion proposed for 2027 compares to this year’s $10 billion budget and last year’s $9.4 billion budget.
