NYS Office of the Comptroller DiNapoli Warns Changing Fiscal Landscape Could Increase Budget Challenges for Local Governments

 

Recommends Prudent Budgeting and Transparency to Avoid Fiscal Cliff

The expiration of one-time federal pandemic aid, combined with state aid that has not kept pace with inflation and slower growth in local revenue may push some local governments closer to the edge of a fiscal cliff, according to a report released today by State Comptroller Thomas P. DiNapoli. The report provides an overview of these revenue sources and how they have affected local budgets in recent years.

“With pandemic aid coming to an end and uncertainty coming out of Washington, local governments need to shore up their fiscal foundations,” DiNapoli said. “By focusing on ensuring structural budget balance, using realistic revenue projections and multiyear planning, local governments will be better positioned to weather whatever financial challenges lay ahead. My office continues to support local governments by offering resources to help with financial planning and management.”

Federal Stimulus Aid

Local governments received federal pandemic aid through a variety of programs in 2020, 2021 and 2022. The federal Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 provided nearly $1 billion in targeted aid to five counties and one town in New York state, and another $1.5 billion to New York City at the start of the pandemic. Local governments outside of New York City received a total of $4.8 billion in financial relief from the federal American Rescue Plan Act of 2021 (ARPA) in 2021 and 2022, which they were required to obligate by the end of 2024 and spend by the end of 2026.

Although federal aid traditionally represents the smallest portion of overall revenue for local governments, it was the fastest growing source of revenue during the pandemic – increasing more than 50% between 2019 and 2023, from $2.8 billion to $4.4 billion. Outside of New York City, counties received the most federal stimulus funds in terms of overall dollars, while ARPA funds represented 14.4% of total 2019 (pre-pandemic) revenues for cities, 5.3% for towns, 4.5% for counties and 3.2% for villages.

Excluding New York City, twenty cities (32.7%) received their first installment of ARPA funding in an amount that exceeded 10% of their 2019 total revenues, compared to 5.4% and 5.8% of villages and towns, respectively. ARPA payments in 2021 represented more than 30% of 2019 total revenues in the cities of Utica and Buffalo.

With these federal funds ending, some cities are taking measures to close structural budget deficits, including overriding the property tax cap to increase their tax levies. Local governments are at a greater risk of having a structural budget imbalance if the one-time aid was used for recurring costs, such as paying for personnel expenses or ongoing programs.

Other Revenue Trends Impacting Local Governments

DiNapoli’s report identified where local governments are facing other revenue pressures in addition to the end of federal pandemic aid which may require adjustments to avoid budget shortfalls.

Sales Tax - For most of 2021 and in part of 2022, local governments outside of New York City saw double-digit year-over-year percentage increases in local sales tax collections after experiencing a 19% decline during the height of the pandemic. Local government sales tax collections outside New York City totaled $2.85 billion in the fourth quarter of 2024, a decrease of over $21 million (0.7%) compared to the same quarter in 2023. This decrease marks a stark contrast to the post-pandemic surge in local sales tax collections. As seen throughout 2023 and 2024, sales tax revenue growth has returned to levels of growth typical of the pre-pandemic period, with moderate year-over-year increases. Local sales tax revenue outside New York City grew 7.5% from 2021 to 2022 but just 2.3% from 2022 to 2023.

State Aid - The Aid and Incentives for Municipalities (AIM) program represents the largest amount of unrestricted state aid to local governments. The State Fiscal Year (SFY) 2024-2025 Enacted Budget provides $715 million in AIM funding for all cities, towns and villages outside of New York City, or approximately the same amount that was appropriated in SFY 2011-12. When adjusting for inflation, AIM funding has declined nearly 30% over that same period, and is now worth less to local governments than what they received in unrestricted aid in 2004-05, the year before the AIM program started. In addition, $50 million in Temporary Municipal Assistance allocated in the SFY 2024-25 Enacted Budget for all AIM recipients is proposed in the SFY 2025-26 Executive Budget to continue for just one more year.

Property Taxes – For localities, property taxes continue to be one of the largest and most reliable sources of revenue, totaling $13.6 billion in local fiscal year 2023. However, there are statutory limits to how much a local government can raise in property tax revenue. Under the property tax cap, local governments are generally required to limit the growth of property tax levies to the lesser of 2% or the rate of inflation. Although the rate of inflation has been decreasing, it remains over 2%, setting the property tax cap at 2% for municipality fiscal years beginning in 2025. In addition, counties, cities and villages are limited in the overall revenue that can be raised through the property tax in any one year by the constitutional tax limit.    

After receiving federal ARPA aid, some local governments reduced the amount of property taxes they levied. Overall, counties reduced their property tax levy by 1.2% or $75.7 million from 2022 to 2023, while cities outside of New York City raised their levy by 0.3% or $4.1 million during this same period. Towns and villages maintained a steady increase in their property tax revenue before and throughout the pandemic.

A Failure to File Annual Financial Reports Leaves Taxpayers in the Dark

The number of local governments that have failed to file timely annual financial reports [AFRs] has been increasing in recent years. For the local fiscal year ending in 2019, 142 (9%) of over 1,575 counties, cities, towns and villages failed to file AFRs on time. For fiscal year 2023, 233 (14.8%) had not filed AFRs by Aug. 31, 2024.

If a local government does not prepare and submit complete and accurate AFRs in a timely manner, it may call into question the effectiveness of the financial management and standing of a municipality, reduces transparency, and diminishes accountability for how funds were spent.

Without a timely-filed AFR, the Comptroller’s office is unable to issue a Fiscal Stress Monitoring System (FSMS) score to assess a local government’s financial condition. Recently, both the Village of Washingtonville (Orange County) and the City of Dunkirk (Chautauqua County), which have had problems filing recent AFRs, both needed state legislation to allow them to issue millions of dollars in deficit financing debt, a sign of extreme fiscal stress.

Recommendations

DiNapoli’s report recommends local governments:

• Ensure any ARPA funds are spent before the 2026 deadline.
• Identify any one-time revenues that were used for recurring purposes and find alternative revenue sources where needed.
• Communicate with taxpayers regarding the use of additional aid over the past few years.
• Engage in multi-year planning to better understand the implications of current revenue and expenditure actions for out-year budgets.
• Act quickly to ensure fiscal stability by continuously monitoring the current budget and adjusting as needed.
• Access the Comptroller’s Division of Local Government and School Accountability webinars, management guides and other publications to assist in developing a budget and maintaining proper accounting records.

Report

Boom or Bust? Federal Relief Aid and Local Government Finances in New York State

MAYOR ADAMS ANNOUNCES PROGRESS ON $30 MILLION COMMUNITY HEALTH CENTER, STRENGTHENING HEALTH CARE ACCESS TO FAMILIES IN UNDERSERVED FAR ROCKAWAY

 

State-of-the-Art Gotham Health Community Health Center Advances Mayor Adams’ Efforts Alongside Local Elected Officials to Strengthen Health Care Access and Equity on Rockaway Peninsula

 

New Center Will Provide Primary and Specialty Care, Women’s Health, Vision, Behavioral Health, Dental, Podiatry, and Imaging Services

New York City Mayor Eric Adams, NYC Health + Hospitals President and CEO Dr. Mitchell Katz, New York City Economic Development Corporation (NYCEDC) President and CEO Andrew Kimball, and Queens Borough President Donovan Richards today announced that construction is now underway on a new 22,000-square-foot Gotham Health community health center that will provide comprehensive health care services to residents of Far Rockaway, Queens. The state-of-the-art community health center will expand community members’ access to primary care, specialty care, women’s health, dental, vision, podiatry, radiology, and mental health services. The Adams administration has contributed $30 million to cover the cost of retrofitting the space and providing advanced medical equipment.

 

“As I said in my State of the City address last month, our goal is to make New York City the best place on the globe to raise a family, and keeping families healthy is essential to keeping families in the five boroughs,” said Mayor Adams. “For too long, lack of access to services has been a barrier to health care and opportunity for underserved communities here in Southeast Queens. With this facility, we are bridging the health care gap and investing $30 million to provide vital medical equipment for everyday New Yorkers.”

 

“New York City’s public hospital system provides care to New Yorkers without exception, including where they live,” said NYC Health + Hospitals President and CEO Dr. Katz. “The opening of the Gotham Health community health center in Far Rockaway will make critical primary and specialty care services readily available to residents of the peninsula, who for too long have needed to travel elsewhere to access the care they need. We are thankful to Mayor Adams and Queens Borough President Richards whose advocacy and investment made the construction of this clinic a reality.”

 

“The construction of the Gotham Health center in Far Rockaway will bring critical health care services to a historically underserved community,” said NYCEDC President and CEO Kimball. “NYCEDC is thrilled to have helped facilitate funding for this health center as a continued commitment to our Downtown Far Rockaway Roadmap for Action. We look forward to working together with NYC Health + Hospitals and Queens Borough President Richards to support the Far Rockaway community.”

 

“This new clinic expands access to high quality, affordable health care for the Far Rockaway community,” said NYC Health + Hospitals/Gotham Health CEO Michelle Lewis. “With both primary and specialty care services, we are ensuring that patients are able to receive comprehensive, coordinated care. This clinic reflects our commitment to health equity and our mission to provide exceptional care for all New Yorkers.”

 

“It's been a decade since I convened the Downtown Far Rockaway Working Group to lead the groundbreaking $288 million rezoning of this incredible community, and the dividends this initiative continues to pay in this community are astounding. I couldn't be prouder to have worked tirelessly alongside so many government and community partners to deliver this critical investment in the health of Far Rockaway families, as we bring the days of deliberate disinvestment in this neighborhood to an end,” said Queens Borough President Donovan Richards Jr. “For far too long, families on the peninsula have experienced higher rates of numerous diseases, but the high-quality, comprehensive preventative care offered at this $30 million new NYC Health + Hospitals facility represents a massive step forward in making Far Rockaway a healthier and stronger community. The residents this clinic will serve deserve nothing less than the best.”

 

The new community health center — located at 1720 Village Lane in Far Rockaway — is expected to open in 2027, and is strategically designed to bridge health care gaps in Far Rockaway, where community members have historically had limited access to care. Borough President Richards played a crucial role advocating for the center and ensuring it will provide comprehensive health services and promote health equity for the Far Rockaway community.

The facility will offer a full spectrum of primary care services, including:

• Preventive and general medical care to support the overall well-being of individuals and their families.
• Pediatric health care to promote the growth and development of children from infancy through adolescence.
• Women’s health and maternity services to provide comprehensive gynecological, reproductive, prenatal, and postpartum care.
• Mental and behavioral health support to address community members’ emotional, psychological, and psychiatric needs.
• Chronic disease management for conditions, such as diabetes, hypertension, and cardiovascular disease.
• Comprehensive podiatry care, including treatment for diabetic foot conditions and other foot health concerns.
• Vision screenings and eye care for diagnosing and managing common vision issues.
• Complete dental care, including routine exams, professional cleanings, and oral health treatments.
• Advanced diagnostic imaging, featuring CT Scans, DEXA|Bone Density Scan, ultrasounds, and 3D mammography to provide precise medical evaluations.

The Adams administration has prioritized helping New Yorkers live longer, healthier lives with its HealthyNYC initiative, which aims to extend the average life expectancy of New Yorkers to 83 years by 2030. Increasing access to quality, preventative health care can help screen for cancers and manage chronic diseases.

 

This new community health center fulfills a core commitment of NYCEDC’s “Downtown Far Rockaway Roadmap for Action” and Mayor Adams’ “Rebuild, Renew, and Reinvent: A Blueprint for New York City’s Economic Recovery.”

 

CONSUMER ALERT: THE NEW YORK DEPARTMENT OF STATE’S DIVISION OF CONSUMER PROTECTION OFFERS TIPS TO HELP AVOID UNWANTED TELEMARKETING CALLS

 

Encourages Consumers to Register Phone Numbers with Do Not Call Registry and File a Complaint When They Receive an Unwanted Telemarketing Call

Newly Enacted “Seinfeld Law” Requires Telemarketers to Provide Certain Information Within the First 30 Seconds of a Call

Secretary Mosley: “Every consumer should take the time to put their phone number on the Do Not Call Registry and report any instance of an unwanted telemarketing call so we can track down bad actors and take legal action against them.”

The New York Department of State’s Division of Consumer Protection is providing tips to help New Yorkers combat unwanted telemarketing calls. Consumers are encouraged to register their phone numbers with the Do Not Call Registry and to file an individual complaint each time they receive an unwanted telemarketing call after registering for more than 31 days.

On January 1, 2025, New York State enacted the so-called Seinfeld law, named after the hit comedy series “Seinfeld,” to help protect consumers from potentially deceptive telemarketing practices while promoting transparency and accountability in the telemarketing industry. The new law requires telemarketers to identify themselves in the first 30 seconds of an unsolicited phone call, including their name, the company they represent and why they are calling. Callers must also give the person they’re calling an option to be added to their company’s “do not call” list, as well as disclose if the call is being recorded.

“We’ve all been on the receiving end of annoying and unwanted telemarketing calls, and too many New Yorkers don’t know that there are tools available to help make them stop,” said Secretary of State Walter T. Mosley. “Every consumer should take the time to put their phone number on the Do Not Call Registry and report any instance of an unwanted telemarketing call so we can track down bad actors and take legal action against them. These efforts, combined with the State’s new ‘Seinfeld Law,’ will help further our progress toward limiting the scourge of scam calls to New Yorkers and preventing fraudulent telemarketing scams.”

UNDERSTANDING THE DO-NOT-CALL REGISTRY

The Do-Not-Call (DNC) Registry is designed to stop companies from promoting their goods and services by making unwanted sales calls to potential customers. The DNC Registry allows you to register your landline and cell phone numbers in one central database to limit the telemarketing calls you receive. Once you register your phone number, telemarketers have up to 31 days from the date you register to stop calling you. Registering your phone number does not prohibit all businesses from calling you. Calls from or on behalf of political organizations, charities and telephone surveyors are exempt, as are companies with which you have an existing business relationship, unless you ask them to place your number on their own do-not-call list.

TIPS TO HELP COMBAT UNWANTED TELEMARKETING CALLS:

• Register on the Do Not Call list: Register your phone number on the National Do Not Call Registry with the Federal Trade Commission (FTC). Seventy five percent (75%) of New Yorkers have registered their number in the DNC Registry. To register:
  • Visit DoNotCall.gov 
  • Call 888-382-1222 (TTY 1-866-290-4236) from the number you want to register
• Beware of Unintentionally Consenting to Telemarketing Calls: Even if your number is listed on the Do-Not-Call Registry, telemarketers are permitted to contact you when you request the call. Telemarketers may try to lure consumers into consenting to telemarketing calls. For instance, when you are looking for information online, make sure you read the fine print below any click boxes. These may include references to “marketing partners” that you are “agreeing” to receive calls from with one click of your mouse. While New York requires an express request to contact from a telemarketer, these websites may nonetheless lead to multiple unwanted contacts.
• File a complaint if you receive unwanted telemarketing calls after registering for more than 31 days: Registering your phone number on the DNC Registry is only the first step towards bringing these calls to an end. The next step is to file a complaint for every unwanted call. File a Do Not Call complaint online at the Registry’s website or by calling 1-888-382-1222 (TTY 1-866-290-4236). For tips on how to file a Do Not Call complaint, please review the guidance provided on our website.
• Enter every unwanted call separately when filing a complaint: As part of the complaint process, it is important that New Yorkers submit individual complaints for each unwanted call. Each unwanted call is one complaint. If you receive five unwanted calls, please submit five separate complaints. Provide as much information as you can as this helps the Division of Consumer Protection to track down the caller.
• Register unwanted “Robocalls”: If you received a call that used a recorded message instead of a live person (known as a “robocall”), you can also file a complaint whether or not your number is on the Registry.

BEWARE OF SCAM CALLS:

• Watch out for calls from scammers: Not all calls are from legitimate companies. Scammers will try to impersonate legitimate companies, government entities, utilities and even charities. Common scam calls often involve tech support, debt collection, student loan repayment, the IRS or law enforcement. If you suspect the call may be a scam, simply hang up or end the call immediately.
• Protect personal information: Never give out personal or financial information to an unsolicited caller. Ask callers to send you information in the mail or contact them separately through their official, publicly listed phone number or website.
• Avoid Pressing “1”: Pressing any number confirms your number is active. Even if the prompt says, "press 1 to be removed from the list," pressing any number can still signal to a possible scammer that your number is valid and could result in more calls.
• Be wary of too-good-to-be-true offers: As always, if the offer seems too good to be true, it probably is. Calls claiming you won a free prize, medical device, lottery or vacation are likely scams.

THE IMPORTANCE OF FILING COMPLAINTS

The Department of State’s Division of Consumer Protection enforces New York’s telemarketing law. In 2024, New Yorkers logged a total of 109,692 telemarketing complaints with the Federal Trade Commission. By filing a complaint, New Yorkers help the Division track down and identify violators of the Do Not Call law and take legal action against the businesses making those unwanted, unsolicited and often annoying telemarketing phone calls. Businesses can be fined up to $20,000 per violation by the New York Department of State and may be subject to additional fines by the FTC and Federal Communications Commission (FCC). The Division uses the consumer complaints to take enforcement action against the violators, and the more complaints filed by New Yorkers, the higher the fine that may be levied.

About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.

Pelham Parkway Neighborhood Association Hosts March Event

 

The PPNA is hosting very important guests for our March11 Community Meeting at Bronx House located at 990 Pelham Parkway South. Bally's executives will be there to inform the community of their proposed Casino in the Bronx. Please show up for this extremely important information gathering event and Ask Questions! 

 

New York City Hispanic Chamber of Commerce - M/WBE Informational Session for Bronx Borough-Based Jail (BBJ)

 

Register Today

Statement From Communications Director Anthony Hogrebe Re: Lieutenant Governor Antonio Delgado

Antonio Delgado finally said out loud what has been obvious for quite some time: he is simply not interested in doing the job of the Lieutenant Governor of the State of New York. Governor Hochul had already begun taking steps to identify a new running mate for 2026. We will also be reallocating responsibilities within the administration to ensure that important initiatives that had been within the Lieutenant Governor’s office are no longer neglected. Governor Hochul wishes him the best in his future endeavors.”

 

Leader of the H-2 Drug Cartel Extradited from Mexico to Face Narcotics Trafficking, Firearms and Money Laundering Charges in Brooklyn Federal Court

 

Jesus Ricardo Patron Sanchez, aka “H-3,” Allegedly Led Ruthless Transnational Criminal Organization Responsible for Distributing Thousands of Kilograms of Narcotics and Multiple Murders

Jesus Ricardo Patron Sanchez, also known as “H-3,” “Diabolic,” “Vela,” “James Bond” and “Xmen,” was arraigned on February 22, 2025 at the federal courthouse in Brooklyn on an indictment charging him with leading a continuing criminal enterprise, participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with narcotic offenses.  Sanchez, a Mexican citizen, was arrested in Mexico in February 2019 on a provisional arrest warrant issued based upon charges in the Eastern District of New York and subsequently extradited from Mexico to the United States on February 21, 2025.  The arraignment was held before United States Magistrate Judge Peggy Kuo. Sanchez was ordered detained pending trial. 

John J. Durham, United States Attorney for the Eastern District of New York, and Matthew Allen, Special Agent in Charge, U.S. Drug Enforcement Administration, Los Angeles Field Division which oversees the Las Vegas District Office (DEA), announced the extradition and arraignment.

“As alleged in the indictment and court filings, Sanchez was one of the principal leaders of the H-2 Drug Trafficking Organization, a brutally violent transnational criminal organization that flooded American streets with dangerous drugs and protected its operations through murder and corruption,” stated United States Attorney Durham.  “This Office is committed to working with its federal and international partners to bring leaders of cartels and transnational criminal organizations to justice in the United States and to hold them accountable for the death and destruction they have unleashed here and abroad.” 

Mr. Durham extended his appreciation to the DEA’s offices in Las Vegas and Mexico City, Mexico, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs and the Government of Mexico. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Sanchez.

“Our country is facing an unprecedented drug crisis. Violent drug trafficking organizations, like H-2, fueled by unrelenting and callous greed have been saturating our communities with poison, death, and chronic devastation,” stated DEA Special Agent in Charge Allen.  “The DEA continues its unwavering determination to mitigate this evil and eradicate their terror and corruption from our streets.”

According to the indictment and court filings, Sanchez was a leader of the H-2 Drug Trafficking Organization (the H-2 DTO), a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico.  Sanchez’s alias “H-3” is a reference to his status as a successor to Hector Beltran-Leyva, the original “H” and one of the principal leaders of the Beltran Leyva Cartel that was previously part of the Sinaloa Cartel. The H-2 DTO was previously led by the defendant’s brother, Juan Francisco Patron Sanchez, also known as “H-2.”  Based on public reporting, after Juan Francisco Patron Sanchez was killed in 2017, the defendant assumed principal leadership over the H-2 DTO.  The H-2 DTO had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York.  The DEA estimates that between January 2013 and February 2017, the H-2 DTO distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine and methamphetamine, and thousands of kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds in return.  In furtherance of its drug trafficking operation, the H-2 DTO used firearms and physical violence and is associated with numerous homicides. 

Between June 2013 and December 2016, the defendant was one of the principal leaders of the H-2 DTO and directed the distribution of large quantities of cocaine, heroin, methamphetamine and marijuana from Mexico into various parts of the United States, including the Eastern District of New York.  The defendant also coordinated the money laundering activities of other members of the H-2 DTO to ensure the proceeds of their drug trafficking were transferred back to Mexico.  In addition, he conspired with other leaders and members of the H-2 DTO to kill members of rival drug trafficking organizations and other individuals perceived as threats to the H-2 DTO.   

The extradition of Sanchez is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.  OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of the continuing criminal enterprise count, the defendant faces a mandatory life sentence; the defendant faces up to a life sentence on the other counts of the indictment.

Governor Hochul Announces Metro-North to Operate First-in-the-Nation Battery- and Electric-Powered Locomotives for Penn Station Access

Connecting Communities in the Bronx to Midtown Manhattan Through Faster and Greener Rail Service

Clean and Environmentally-Friendly Battery- and Electric-Powered Locomotives Will Be the First To Operate Passenger Trains in North America

Governor Kathy Hochul announced details of a major expansion of Metro-North Railroad’s railcar fleet, unveiling plans to add new trains that will provide New Haven Line service to Penn Station and four additional stations in the Bronx.

“New York's transportation system sets the standard for clean and reliable transit in North America, and we are further expanding and modernizing our transit system to better connect every community across the state,” Governor Hochul said. “I am committed to advancing environmentally-friendly and clean modes of transportation — that's how we fight the climate crisis while delivering faster and more efficient service to riders."

In a first for North America, the passenger trains will be powered by battery- and electric-powered locomotives offering clean, green zero-emission service. The locomotives will generally draw electrical power from the overhead wires known as catenary, and switch to battery mode for tracks in and around Penn Station where electrical traction power has different characteristics. The Siemens Mobility Charger locomotives were based on the leading locomotive platform in Europe, the Vectron, and the Siemens battery and electric Charger locomotive is the next generation locomotive for North America.

MTA Chair and CEO Janno Lieber said, “Transit is the antidote to climate change, and these locomotives — the first ever in North America — demonstrate, again, the MTA’s commitment to using innovation to green the region.”

President of MTA Metro-North Railroad Catherine Rinaldi said, “In a few years, Metro-North’s Penn Access service will revolutionize how New Haven Line customers travel around the region, creating a link between communities in the Bronx and employment opportunities in West Midtown and along the New Haven Line in Westchester County and Connecticut. What better way to inaugurate this new service than with cutting edge battery-electric locomotives that will set a new standard for environmental friendliness and overall reliability?”

If approved by the MTA Board — as anticipated on Wednesday — 13 battery- and electric-powered locomotives will be purchased by exercising an option on an existing contract with Siemens Mobility North America, which is already building 33 dual-mode locomotives for Metro-North that operate under diesel or third rail power.

The new locomotives are expected to be similar in appearance to those 4,200-horsepower diesel/electric locomotives, known by the model number SC42-DM, which Metro-North unveiled in November 2024. The locomotives will pull or push coach cars, depending on the direction of travel, a configuration similar to Metro-North’s diesel trains.