Peek Inside Port Authority’s $10.3B Budget Proposal In New Jersey, New York

Airport upgrades, road improvements and “extreme weather” safeguards are among the spending items in the latest proposed budget from the Port Authority of New York and New Jersey.

The bi-state agency operates many of the region’s busiest transportation hubs, including the George Washington Bridge, Lincoln Tunnel, Port Authority Bus Terminal, the Port of New York and New Jersey, the PATH rail system, and three major airports: LaGuardia, Newark Liberty and JFK.

This year, the Port Authority is proposing a $10.3 billion capital and operating budget for 2027 – an increase from $10 billion in 2026.

The tentative budget, which can be seen online here, includes $4.5 billion for operating expenses, $4 billion for annual capital spending, $1.7 billion for debt service and $100 million in deferred expenses.

Proposed operating expenses include nearly $1 billion for maintenance of facilities across the region. The list includes $25 million in major repairs to address the impact of extreme weather on “legacy facilities,” and $21 million for maintenance dredging to maintain commercial shipping lanes that serve the Port of New York and New Jersey.

The spending plan also contains money for improvements to tunnels and bridge roadways, enhanced inspections, cleaning of expansion joints at bridges, and targeted repairs to PATH infrastructure and railcars.

Meanwhile, the agency is also planning to spend $4 billion to upgrade or build new facilities. The list includes:

AIRPORTS – “Proposed funding for the ongoing redevelopment at John F. Kennedy International Airport, including the completion of the first phase of the new Terminal 1 and a new ground transportation center. At Newark Liberty International Airport, construction for a new AirTrain Newark will continue to advance to replace the aging system – which is past its useful life – with a wholly new system designed to meet increasing passenger demand and enhance customer experience for airport visitors and employees. Planning and design activities continue for a new Terminal B at Newark Liberty and an expansion of gates at Terminal A. Ground access initiatives advance through the continuation of mass transit access improvements for LaGuardia Airport and the first year of operation of a new entry point to the Newark Liberty International Airport Train Station served by AirTrain Newark, Amtrak and NJ TRANSIT rail. The project, which is currently nearing completion, will dramatically expand transit and airport access for historically underserved areas of Newark and Elizabeth.”

TRAFFIC AND TUNNELS – “Proposed funding advances work on the replacement of the Port Authority Bus Terminal with a new world-class Midtown Bus Terminal, including ongoing construction of the Dyer Avenue deck-overs and a new storage and staging facility and ramps, as well as planning efforts for the new Terminal. Work will also continue to advance on the remaining key components of the Restoring the George program, which will maintain the structural health of the world’s busiest bridge for millions of motorists each year, and other state-of-good-repair projects at the Lincoln Tunnel helix and the Outerbridge Crossing.”

PATH TRAIN – “Proposed funding includes continued improvements to tracks and railcars, as well as furthering enhancements to reliability, safety, and customer experience for the projected 67 million riders expected in 2027. Funding also provides support for Amtrak rehabilitation projects around the region that intersect with PATH service, such as repairs of the Dock and Sawtooth Bridges. Funding will advance construction on PATH’s new substation No. 2, which supports all PATH operations and service.”

PORTS AND CARGO – “The East Coast’s busiest container port is expected to maintain its leadership position among U.S. ports, with projections to move 9 million TEUs (twenty-foot-units) in 2027. Proposed funding will further advance key components of the Port Street Corridor Improvement project as part of the overall effort to modernize the road network leading into Port Newark. Wharf rehabilitation work will continue across multiple facilities, and construction will begin on the replacement of public berths at Port Newark.”

WORLD TRADE CENTER CAMPUS – “Supplements American Express’ funding for infrastructure work at the construction site of the new 2 World Trade Center, American Express’ new global headquarters. Funding is included to ensure 1 World Trade Center remains in a state of good repair and maintains its Class A office standard to attract and retain top-tier tenants. Regulatory-related upgrades to the campus’ river water pump station will also continue.”

The Port Authority does not receive revenue from New York, New Jersey, or New York City. Roughly 35 percent of the agency’s budget comes from tolls and fares, with the remainder coming from lease payments, third-party fees and other sources.

The Port Authority Board of Commissioners plans to seek adoption of the budget at their meeting on Dec. 17. Members of the public are encouraged to submit comments for the proposed budget by Dec. 15 through the agency’s website.

AUTOMATIC FARE HIKES

As part of its annual budget announcement, the Port Authority noted that there will be separate fare and fee hikes taking place next year for bridge/tunnel tolls and AirTrain fares.

The automatic, “inflation-based” fare increases were previously approved by the board of commissioners under policies adopted in 2008, 2011 and 2019. In addition, fees will increase in accordance with board authorized adjustments adopted in 2024 and 2025.

• Tolls – Tolls are increasing by the automatic inflation-based toll adjustment for autos and trucks, by the third of four annual 25-cent adjustments for autos and trucks (authorized in 2024), the first $0.50 reduction in the E-ZPass off-peak discount for autos to phase out the discount over four years (authorized in 2025), and through annual scheduled adjustments to bus tolls (as authorized by the board in 2025).
• PATH Fare – Separately, as part of the Port Authority's previously approved 2026-2035 capital plan, PATH's single-ride fare will increase by 25 cents to $3.50 on Jan. 3, 2027, to support expanded service, capacity, and continued investments in the rail system. The increase was part of a previously approved series of fare adjustments supporting more frequent weekday and weekend service, improved reliability, and critical infrastructure upgrades.

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.