Roughly 60,000 low-income riders who rely on the MBTA are set to receive half-priced tickets and passes, with the agency’s board approving the reduced fare plan long sought by Gov. Maura Healey.
The MBTA Board of Directors unanimously greenlighted the program during its monthly meeting Thursday, receiving loud applause from advocates who say the initiative will bring them major relief.
The program, set to launch later this spring or in the early summer, will provide half-priced tickets and passes to riders across the beleaguered network who are between the ages 26 and 64 and have an income under 200% of the federal poverty line.
The board also voted for a contract “reset” with Chinese firm CRRC that now calls for the final new Red and Orange Line trains to be delivered by the end of 2027.
Under the updated terms, the MBTA will pay as much as $148 million more to account for higher-than-expected costs linked to the COVID-19 pandemic and supply chain disruptions, swelling the total contract value to more than $1 billion.
The agency also agreed to forgive about $90 million in penalties that the manufacturer faces for delays so far. Another $37 million in damages would remain in place, but the updated contract would set incentives that could effectively dismiss those charges as well if CRRC meets new targets.
As for the discount fares, the cost to roll out the program, which will also apply to the RIDE paratransit service, is expected to be between $23–$26 million next fiscal year, an amount that is projected to grow to $52–$62 million by FY29.
MBTA Advisory Board Executive Director Brian Kane raised concerns around the implications of the program, tying it to the agency’s continued financial and transparency problems.
Kane, speaking to the board Thursday, echoed similar comments he made last month in a segment on WBZ’s Keller @ Large.
“There’s no funding source dedicated for it in the long term,” Kane said in late February. “Gov. Healey has put $45 million in her budget, just because it’s in the governor’s budget doesn’t mean it’s going to actually pass. The legislature has to do what they do. But there’s no money in year two, and the costs for this program rise to about $100 million after five years.”
Healey allocated $5 million for research on low-income fares in this fiscal year’s budget, with MBTA staff taking “significant steps toward program implementation,” according to officials. Those efforts include developing interagency partnerships with the state Registry of Motor Vehicles and Executive Office of Health and Human Services.
Steven Povich, senior director of fare policy and analytics, in January said he believes riders will be able to get through the enrollment process within five minutes. Officials are creating a tool that will check an applicant’s participation status in other low-income state programs, like the Supplemental Nutrition Assistance Program, or SNAP, he said.
Discounts will apply to anyone making under 200% of the federal poverty limit, which translates to about $30,000 for a single-person household or $60,000 a year for a family of four. Officials estimate roughly 62,000 current T riders will meet the threshold.
The program’s implementation comes during a time when the agency’s budget gap could grow to $652 million in the next fiscal year, when pandemic relief funds that have been helping the agency offset its significant loss in fare revenue and high cost of federally mandated safety fixes run out.
