NJ Transit asks feds for $1.25 billion bailout as coronavirus decimates ridership

Facing a huge drop in ridership, NJ Transit officials asked the federal government for a $1.25 billion bailout to make up or revenue losses and higher expenses to fight the coronavirus in a letter sent to the congressional delegation Thursday.

NJ Transit has experienced an 88% drop in ridership since March 9, said Nancy Snyder, a spokeswoman. More employees are working from home, resulting in light travel on NJ Transit trains, on the agency’s and private carrier buses and on highways in the state.

Officials estimate the agency could lose as much as $1.25 billion by the end of fiscal year 2021, and faces additional expenses in the cost to expand disinfection and cleaning of “touch points” trains buses and stations to prevent the spread of coronavirus, said Kevin Corbett, NJ Transit CEO and president in the letter.

“Emergency federal funding is required, so that current programs for capital projects and state of good repair funding are not cannibalized, at the expense of system safety and operations,” Corbett wrote. “NJ Transit also is requesting continued regulatory flexibility from our federal partners for critical project and grant deadlines and other mandates.”

Revenue from fares makes up a significant part of NJ Transit operating budget, more than 40%.

New Jersey has 742 of coronavirus as of Thursday afternoon and officials have encouraged people to work from home to “flatten the curve” and reduce the spread of the disease.

New York’s MTA took a similar step on March 17, asking that state’s congressional delegation for $4 billion in aid. The MTA cited ridership declines of 60 % on the subways, 49 % on buses, 90 % on Metro-North and 67% on the Long Island Rail Road in a press release.

The letter comes a day after advocates from the Tri-State Transportation Campign urged NJ Transit to apply for federal funds

Private commuter bus companies and ferries already have made service reductions that started Monday. Two bus companies, Suburban Transit and Academy Bus made further reductions Wednesday, moving to weekend schedules and eliminating specific bus trips to and from New York.

NJ Transit, which runs the nation’s only statewide public transit agency, faces more complicated issues in a blanket service reduction. Many local bus riders don’t have access to a car, may not be able to work from home and are dependent on NJ Transit service to get to work, said Janna Chernetz, Tri-State Transportation Campaign deputy director. She has been nominated to serve on NJ Transit’s board of directors.

“NJ Transit must balance reduced service to save operating costs with still providing critical transportation needs for the transit dependent,” she said. “Perhaps modifications can also be made to ensure those who are transit dependent have access to basic services and needs.”

Chernetz encouraged NJTransit, especially through their AccessLink services, to work with those vulnerable communities.

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Larry Higgs may be reached at lhiggs@njadvancemedia.com. Follow him on Twitter @commutinglarry. Find NJ.com on Facebook. Have a tip? Tell us. nj.com/tips.Get the latest updates right in your inbox. Subscribe to NJ.com’s newsletters.

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