Speaker Menon questions OMB on Fair Fares expansion costs and utilization
Menon asks about costs to expand Fair Fares to 200% FPL ($150-300 million depending on utilization), potential enrollment of over a million riders, and concerns about chronic underspending, with Solomon detailing outreach efforts including subway ads and MTA partnerships.
So moving to the substance.
So fare fares, which, as you know, is one of the top priorities, an expansion of fare fares that the council has put forward.
So some questions on that.
What does the administration estimate it would cost to expand the eligibility of Fair Fares programs to 175%, 200%, and 250% of the federal poverty level?
So let me start, Speaker, by saying we are proud that we were able to fund in the executive budget $25 million that had been put up at the adopted budget.
As a one-shot in the Fair Fares program.
We know that there are calls to increase the rate, to increase the percentage of federal poverty level.
If we were to go to 200%, depending on utilization, it can be anywhere between $150 million to $300 million.
And what do you estimate would be the increase in the number of clients enrolled in the program for these expansion scenarios?
We have estimates that can be upwards of over a million riders.
Really depends on utilization.
Okay.
During the hearing we had on the General Welfare Executive Budget hearing, HRA testified that through March 2026, $62.5 million had been spent in fiscal 2026 for fair fares.
During the first...
three quarters of the fiscal year, only about half of the Fair Fares budget had been spent.
So do you anticipate the entire budgeted amount for the program this year will be spent?
If not, why not and how much will be unspent?
And overall, the questioning is that there's been a underspending has been the case for multiple, multiple years, which is concerning.
So what outreach and education efforts will the administration take to address that?
Sure, Speaker.
So, you know, I think you've heard the mayor say on numerous occasions.
A program on paper is of no use to New Yorkers.
We need to be able to get the word out as much as possible.
You see ads all over the subways.
You see ads on New York One.
You see ads elsewhere.
We know as well that the agency participates on a frequent basis.
With the MTA on outreach events, either in the subways or, you know, wherever they can connect with New Yorkers.
So outreach is key to this program.
And there may be some underutilization that is expected for this fiscal year.
The goal is to fully utilize this program.
Okay, thank you.