During a recent council meeting, officials presented a challenging fiscal budget for the upcoming year, marking a significant transition as it is the first budget crafted without major federal COVID relief funding. The budget, totaling nearly $5 billion, is split evenly between operating and capital expenses, with a notable $750 million gap that needed to be addressed.

The remaining $95 million in federal COVID relief funds will be utilized, but the bulk of the budget shortfall has been mitigated through a combination of increased fares for riders, additional subsidies from the region, and administrative efficiencies. Council members highlighted that the fare increase is expected to generate nearly $400 million in passenger revenue, while non-passenger revenues, including real estate and advertising, are projected to contribute around $100 million.

The operating budget heavily relies on subsidies from Washington D.C., Maryland, and Virginia, which account for approximately $1.75 billion. To address the budget gap, the region has provided an additional $463 million beyond the usual 3% increase.

In an effort to maintain service levels, strategic cuts have been made, particularly in Metro Rail operations, where adjustments such as running six-car trains instead of eight-car trains have been implemented. Additionally, there will be no salary increases for employees this year as part of the shared sacrifice to balance the budget.

Overall, the council emphasized the importance of collaboration and efficiency in navigating the financial challenges ahead while striving to minimize the impact on public transportation services.