Testimony: Public Hearing on Proposed Rule of the Fair Fares NYC Program
Debipriya Chatterjee
Thank you, Chairperson, Councilmembers, and to other members of the Committee for the opportunity to testify today. My name is Debipriya Chatterjee, and I am a Senior Economist at the Community Service Society of New York (CSS), a long-time nonprofit organization dedicated to advancing economic opportunity for working New Yorkers by using rigorous research, advocacy, and direct services to champion a more equitable city and state. We have been especially instrumental in launching the discounted transit fare program, Fair Fares, by working with our collaborators and coalition partners, from some of whom you have already heard today.
Today my testimony will focus on (a) applauding the administration for adding more funds to the Fair Fares program while increasing eligibility to New Yorkers with incomes up to 145 percent of the Federal Poverty Line[1] and (b) reiterating our position that the expansion in eligibility falls short of the need of the hour and that we need the Fair Fares program to be accessible to New Yorkers earning up to 200 percent of the Federal Poverty Line.
Since its inception in January 2019, Fair Fares has provided a lifeline to New Yorkers struggling with transit affordability. As of last week, over 350,000 New Yorkers were enrolled in this vital program which connects low-income New Yorkers to jobs, training, education, medical care, and so much more. At current eligibility levels, which includes individuals and families with incomes up to 120 percent of the Federal Poverty Level, this enrollment figure represents a take-up rate of 41 percent, a significant improvement over the last few years.[2] The outreach and education efforts by the administration, the MTA, and our coalition members are paying off.
While this year’s budget did increase the eligibility to 145 percent and opened the program to 200,000 additional working New Yorkers, we have two concerns. First is the issue of timing. By the time the higher eligibility threshold goes into effect, almost half of a fiscal year would be over, and more than 60,000 working-age commuters who would have been eligible starting July, have continued to struggle for 6 months, as the change in eligibility has not been implemented.
Second, we believe that this expansion still falls short of what is needed to make a tangible difference in the lives of working New Yorkers. Based on CSS’s Annual Survey of Housing and Economic Security, we know that almost 16 percent of all low-income New Yorkers reported that they often struggled to afford subway or bus fares. These are working New Yorkers, who are trying to thrive in a city of exploding costs and increasing hardship. These are working New Yorkers who are engaged in employment in face-to-face industries like education and healthcare, New Yorkers who do not have the opportunity to work remotely, and must commute to their workplaces, often from far corners of the outer boroughs.
Easing transit hardship for working New Yorkers by expanding Fair Fares to 200 percent of FPL is a low-hanging policy fruit. Assuming current patterns of usage continue to hold, we estimate that it would cost the City an additional $28 million to open the program to an additional 390,000 New Yorkers, a third of whom are likely to be regular commuters.
When we first imagined Fair Fares -- working with our partners at Riders Alliance and building a diverse coalition of elected officials, faith leaders, advocates and anti-poverty organizations -- we started cautiously. But today, we know the actual program cost and utilization patterns. All of this tells us that we can afford to expand the program to more of those in need. And we should.
Thank you again for the opportunity to present my remarks. If we can be of any further assistance, please do not hesitate to reach out to me, Debipriya Chatterjee, over email dchatterjee@cssny.org.
Notes
1. For a family of 4, the Federal Poverty Line in 2024 is set at $31,200. At 145 percent of FPL, a family of 4 can be eligible for the Fair Fares program with a household income up to $45,240.
2. Over eligible population is estimated using 2022 1-year American Community Survey Public Use Microdata Sample.