Work begins on $1.9 billion NYC subway upgrade funded partly by congestion pricing

The largest signal and track replacement project in MTA history will modernize equipment that dates back to the 1930s.

New York transit officials have launched a $1.9 billion project to replace nearly century-old subway signals and aging tracks in Brooklyn and Queens, using revenue from Manhattan’s controversial congestion pricing program to help finance the largest overhaul of its kind in Metropolitan Transportation Authority history.

The six-year project will modernize 42 miles of track along the A and C subway lines, replacing signals installed in the 1930s with computerized technology designed to allow trains to run faster, closer together, and more frequently without compromising safety.

New York Gov. Kathy Hochul announced the start of the subway modernization project Oct. 22. Major construction is scheduled to begin Nov. 7, and the MTA expects to complete the project in the second quarter of 2032.

New York’s congestion pricing program began charging motorists entering Manhattan at or below 60th Street in January 2025. New Jersey officials opposed the tolls and sued to block the program, arguing it would add costs for commuters and worsen traffic and pollution in some New Jersey communities.

New Jersey filed its lawsuit in 2023 under former Gov. Phil Murphy, challenging the federal government’s environmental review of the program. A federal judge rejected most of the state’s claims but ordered additional consideration of measures to address pollution in affected New Jersey communities. The lawsuit remains pending, although Gov. Mikie Sherrill’s administration pursued settlement discussions with New York earlier this year.

The program faces a separate legal challenge from the Trump administration, which attempted to revoke federal approval for the tolls in 2025. A federal judge ruled in March 2026 that the administration lacked the authority to unilaterally terminate the program. Federal officials appealed the decision in May.

Replacing nearly 100-year-old technology

The improvements will cover 23 stations along the Fulton Street and Liberty Avenue lines, stretching from High Street in Brooklyn to Ozone Park-Lefferts Boulevard in Queens.

The corridor serves approximately 350,000 riders each weekday and connects to seven other subway lines, 36 bus routes, and the Long Island Rail Road. Across their full routes, the A and C trains carry about 750,000 weekday passengers.

Signal problems are the leading cause of subway delays, according to the MTA. Much of the system relies on aging equipment with replacement parts that manufacturers no longer produce, making repairs increasingly difficult and expensive. The existing technology divides tracks into fixed sections and identifies whether a train occupies each section. That limits how closely trains can follow one another.

The new system, called Communications-Based Train Control, uses continuous communication between trains and equipment along the tracks to determine their locations and speeds more precisely. The technology allows trains to operate closer together safely, potentially reducing passenger wait times and allowing transit officials to run more frequent service. The MTA already uses the technology on the full 7 and L subway lines and portions of the E, F, M, and R lines.

According to the MTA, on-time performance on the 7 line improved from 68% to 91% following signal modernization. Train speeds increased by approximately 10% on the E line in Queens after the MTA activated the new system.

“Upgrading nearly 100-year-old signals does more than just modernize infrastructure that is long overdue,” Hochul said. “It is a critical part of our plan to run better and more frequent subway service, shortening waits and slashing delays.”

The project also includes replacing aging switches, upgrading tunnel lighting, repairing existing infrastructure, and installing cables to support future cellular service in subway tunnels.

How congestion pricing helps pay for the work

The subway overhaul is one of several major capital projects New York is financing with revenue from congestion pricing.

Under the program, drivers entering Manhattan’s congestion zone, which covers local streets and avenues at or below 60th Street, pay an additional toll. Motorists who remain on certain highways, including the FDR Drive and West Side Highway, without entering the congestion zone are exempt.

Passenger vehicles with E-ZPass currently pay $9 during peak hours, from 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends. The overnight rate is $2.25.

New Jersey motorists traveling through the Lincoln or Holland tunnels can receive a $3 credit against the peak congestion charge, reducing it to $6, in addition to their existing tunnel tolls.

The peak congestion toll is scheduled to increase to $12 in 2028 and $15 in 2031.

New York officials say congestion pricing has reduced traffic entering Manhattan and generated hundreds of millions of dollars for transit improvements. The state reported earlier this year that the program kept about 27 million vehicles out of the congestion zone during its first year and generated more than $550 million for long-term transportation investments.

The MTA is financing the subway project through two capital plans. Congestion pricing revenue supports the Fulton Street portion in Brooklyn through the agency’s 2020-2024 capital plan, while the Liberty Avenue portion in Queens falls under the 2025-2029 capital plan. The MTA has not specified how much of the total $1.9 billion cost will come directly from congestion pricing revenue.

The tolling program is helping finance other transit improvements, including signal modernization along Manhattan’s Sixth Avenue subway line, which carries the B, D, F, and M trains. New York plans to use congestion pricing revenue to support signal upgrades across nearly 85 miles of subway tracks.

The MTA’s 2025-2029 capital plan includes another $5.4 billion for signal modernization covering more than 75 miles of track.

Construction to begin in Queens

The first phase of construction will focus on replacing aging switches and more than 250 feet of specialized track between 104th Street and 99th Street in Queens.

Beginning Nov. 7, the MTA plans to suspend A train service between Rockaway Boulevard and Ozone Park-Lefferts Boulevard for nine days, with shuttle buses replacing trains during the work.

The agency expects additional service disruptions throughout the six-year construction schedule.

The MTA awarded the contract to L.K. Comstock and RailWorks in December 2025.

Transit officials say they expect to control construction costs by using a design-build contracting approach, which places engineering and construction responsibilities under a single contract.

The agency estimates that its newer approach to signal modernization has reduced costs per mile by approximately 33% compared with earlier projects. The new signals will also work with the MTA’s newer R211 subway cars, which feature technology that allows them to communicate with the computerized control system.

Officials expect the completed project to improve reliability, reduce delays, and allow more frequent service on two of the city’s busiest subway lines.

The MTA expects to finish the work by mid-2032, nearly a century after workers installed the original signal equipment.