MTA Alerts Vendors: Your Contracts In Jeopardy Without Fed Aid

NEW YORK CITY — MTA’s contracts with its major suppliers are in “jeopardy” without $12 billion in federal aid, the transit agency warned.

Eleven national suppliers received dire letters this week from MTA Chairman Patrick Foye, who wrote the coronavirus pandemic has devastated his agency.

MTA is losing $200 million revenue losses every week, a crisis that even eclipses the impact the Great Depression had on the city’s transit system, Foye wrote.

“I am writing to alert you that because of this financial devastation, many current and all future contracts are in jeopardy without an injection of $12 billion in emergency federal aid,” Foye wrote the supplies. “In response to the COVID crisis, the MTA has implemented immediate and aggressive cost controls, including undertaking a thorough review of all new and planned expenditures.”

The suppliers — which include Alstom Transportation, Bombardier Transportation and Siemens Corporation — are located in 25 states from Florida to Kentucky to California.

The letters are the latest warning sounded by MTA officials as they face a $16 billion projected deficit amid the pandemic. They’ve previously warned of “draconian” service cuts of up to 40 percent without federal stimulus.