NEW YORK — In a move that will redefine the mobility of the tri-state area for the next generation, the Board of Commissioners of the Port Authority of New York and New Jersey (PANYNJ) officially approved a record-breaking $45 billion Capital Plan for 2026–2035. Finalized on December 19, 2025, the decade-long roadmap funnels unprecedented investment into rail, transit, and aviation, aiming to modernize aging arteries and accommodate a projected surge in regional growth.
The plan represents more than just a maintenance schedule; it is a strategic pivot toward “total system resilience” and a world-class passenger experience.
Rail & Transit: The Rebirth of the PATH and Gateway
The most immediate impact for daily commuters lies in the revitalization of the Port Authority Trans-Hudson (PATH) rail system and the agency’s critical role in the Gateway Program.
- PATH Service Expansion: For the first time in 25 years, all four PATH lines are scheduled to return to seven-day-a-week service starting in early 2026. The plan allocates funding for increased peak-hour frequencies and the reinstatement of direct weekend routes (e.g., Hoboken to WTC).
- Gateway Contribution: The PANYNJ has confirmed a $2.7 billion commitment to the Gateway Program, supporting the construction of new Hudson River tunnels and the rehabilitation of the existing 115-year-old North River Tunnel.
- Infrastructure Modernization: Significant capital is earmarked for “state-of-good-repair” projects, including new uptown tracks, signal modernization, and the installation of advanced fare gates equipped with AI technology to combat fare evasion.
The “New Midtown” Bus Terminal
The centerpiece of the land-transit strategy is the $11 billion replacement of the notorious Midtown Bus Terminal. Often cited as a symbol of mid-century neglect, the project will be executed in two major phases:
- Phase One (Completion by 2030): Construction of new ramps to the Lincoln Tunnel and a dedicated bus storage/staging facility to remove idling buses from Manhattan streets.
- Phase Two (Completion by 2035): The demolition of the existing 75-year-old structure and the opening of a 2.1-million-square-foot, light-filled main terminal designed for an all-electric bus fleet.
Aviation: Completing the “World-Class” Transformation
Nearly half of the $45 billion budget is anchored in the continued evolution of the region’s three major airport hubs.
| Airport | Primary Focus Areas (2026–2035) |
| JFK International | Completion of Terminal 1 and 6; a total redesign of AirTrain JFK with double the capacity and new stations. |
| Newark Liberty (EWR) | A new $3.5 billion AirTrain Newark (groundbreaking held Oct 2025) and the development of a brand-new Terminal B via a public-private partnership. |
| LaGuardia (LGA) | Replacement of the 1980s-era concourses at Terminal A while preserving the historic Marine Air Terminal. |
The Fiscal Reality: Funding the Future
To sustain this massive capital outlay while remaining financially independent, the PANYNJ has outlined a series of incremental revenue adjustments:
- PATH Fares: A $0.25 increase is scheduled for Summer 2026, followed by further 25-cent annual increases through 2029 to reach a base fare of $3.75.
- Bridge & Tunnel Tolls: The current $2 off-peak discount for E-ZPass users will be phased out at a rate of $0.50 per year beginning in January 2027.
- Air Access: Fees for for-hire vehicles (Ubers/Lyft) at airports will rise to $5 in 2026.
Conclusion: A Region Reconnected
PANYNJ Executive Director Rick Cotton described the plan as the “next chapter of transformation,” noting that the projects are expected to generate over 50,000 jobs, including 33,000 union construction roles. By 2035, the Port Authority aims to deliver a transit network that is not only faster and more reliable but also significantly more resilient to the climate and security challenges of the mid-21st century.
