The basics:
- Port Authority board approves record $45B 2026–2035 capital plan, $10B budget for 2026
- Includes toll, fare and rideshare fee increases across system
- Major New Jersey investments span Newark Airport, PATH, bridges and ports
- Maher Terminals lease extended through 2063 to support port growth
The Port Authority of New York and New Jersey Board of Commissioners approved a record $45 billion 2026–2035 Capital Plan Dec. 18, along with a $10 billion operating budget for 2026.
Taken during a busy final board meeting of 2025, the actions set the direction for a decade of major transportation, transit, aviation and port investments across the bi-state region.
The board meeting capped a monthlong public comment process. It also formally launched what agency leaders described as a “historic decade of activity” for the Port Authority, building on the completion of major projects from the prior capital plan.
“The Board’s approval of this capital plan sets in motion a historic decade of activity for the Port Authority and for the region we serve,” said Port Authority Chairman Kevin O’Toole, who was re-elected to a ninth term as chairman during the meeting. “We are charting the next phase of a century-old mission defined by dreaming big, solving hard problems, and connecting millions of people to opportunity.”
Port Authority Executive Director Rick Cotton, who will step down the from the agency next month, said the plan builds directly on the Port Authority’s momentum.
“Over the last decade, this agency has shown what it can deliver, turning ideas into concrete realities such as award-winning terminals, rebuilt bridges, modernized transit hubs, and renewed infrastructure serving millions every day,” said Cotton.
Rate increases
There are several toll and fare increases associated with the capital plan, such as:
- Car tolls at six bridges and tunnels will increase by 3%, with an additional $0.25 bump
- Phases out the current $2 discount for autos/motorcycles offered during off-peak hours
- Takes place over four years ($0.50 per year) beginning January 2027
- PATH fare will increase to $3.25 May 3, with annual additional $0.25 increases each January from 2027 through 2029
- An increase to the ride-hailing drop-off/pick-up fee from $2.50 to $3.50. The increase will phase-in over three years beginning with $1 in March 2026, $1 in March 2027, and 50 cents in March 2028
- The agency sought to double it from $2.50 to $5 in this budget, but the move was met with resistance from a number of groups
NJ projects
Key New Jersey-related items approved by the board include:
Newark Liberty International Airport
- Construction of a new Terminal B to anchor the full transformation of Newark airport
- Continued expansion of Terminal A, including future gate additions
- Ongoing construction of the new $3.5 billion AirTrain Newark, with improved reliability and capacity
- Completion in 2026 of a new community access point to the Airport Train Station, improving access for Newark and Elizabeth
- Funding for a third taxiway and a simplified roadway network to reduce flight delays
PATH
- One of the largest service increases in PATH history
- For the first time in 25 years, all four PATH lines will operate seven days a week starting in 2026
- Direct weekend service restored on Journal Square–33 St., Hoboken–33 St., and Hoboken–World Trade Center lines
- Increased rush-hour, late-night and weekend service
- New infrastructure investments, including updated uptown tracks and state-of-the-art fare gates
Bridges, tunnels and bus terminals
- Extensive rehabilitation of the Lincoln Tunnel Helix, valued at $640 million
- A $336 million comprehensive rehabilitation of the Outerbridge Crossing, keeping it open while extending its useful life
- Continued progress on the new Midtown Bus Terminal
Gateway Program
- The capital plan includes the Port Authority’s $2.7 billion contribution to the Gateway Program
Seaport
- More than $1.2 billion in private investments to modernize and expand container terminal operations and infrastructure
Security and resiliency
- A record $1.1 billion in the 2026 budget dedicated to safety and security, including Port Authority Police and cybersecurity investments
- Climate resiliency investments to protect New Jersey infrastructure from severe storms and sea-level rise.
Modernizing facilities
“This plan builds on the trust and momentum earned by delivering complex projects to a world-class standard,” said O’Toole. “Through this visionary plan and the transformative work we continue to do, we are setting a new standard for the region and raising the bar for what public agencies can accomplish.”
Cotton added, “It will advance projects that improve reliability, shorten travel times, elevate the passenger experience, and prepare our region for the next century of growth and innovation.”
[W]e are setting a new standard for the region and raising the bar for what public agencies can accomplish.
– Kevin O’Toole, Port Authority chairman
“This plan provides the foundation to modernize, expand, and protect the facilities that anchor our economy,” said Port Authority Vice Chairman Jeffrey Lynford. “From airports to bridges to ports and transit systems, these investments will deliver stronger, more resilient, and best-in-class gateways for the millions who rely on them every day.”
Agreement at the port
Commissioners also approved a 33-year lease extension with Maher Terminals, the largest and busiest container terminal at the Port of New York and New Jersey. The agreement secures operations through September 2063. It also:
- Strengthens long-term stability for the port
- Supports supply chain growth
- Aligns with the Port Master Plan 2050, which anticipates cargo volumes doubling or tripling by mid-century
“This landmark agreement delivers long-term stability for the port and our supply chain to ensure that it continues to drive economic growth and create good-paying jobs in our communities,” said Gov. Phil Murphy. “Maher’s continued investment in greener technology – prioritizing innovation, modernization and growth – will help us meet the demands of the next generation.”
“This agreement reflects the central role the Port of New York and New Jersey will continue to play in keeping this region and the nation growing,” said O’Toole. “For generations, the Port of New York and New Jersey has been a gateway for goods, jobs, and opportunity. By securing long-term certainty at our largest container terminal, we’re protecting that role, strengthening our position as a reliable trade hub, and ensuring this critical infrastructure continues to serve the public and the economy for decades to come.”
‘Ready to move’
“Cargo volumes are growing, vessels are getting larger, and shippers are demanding more reliability than ever,” said Cotton. “By locking in sustained private investment and modernizing critical infrastructure, we’re making sure the East Coast’s busiest port is ready to move more goods, support more regional growth, and meet the demands of a more complex global economy.”
[W]e’re making sure the East Coast’s busiest port is ready to move more goods, support more regional growth, and meet the demands of a more complex global economy.
– Rick Cotton, Port Authority executive director
Under the agreement, Maher will:
- Assume responsibility for maintaining and rehabilitating wharf and berth structures by 2030
- Expand capacity as demand grows
- Collaborate with the Port Authority on sustainability, innovation and security initiatives
Maher also committed to working toward net-zero greenhouse gas emissions in its operations.
Maher Terminals, one of the port’s five container terminals, handles roughly 35% of container traffic. Its footprint spans approximately 450 acres in Elizabeth, underscoring the agreement’s significance for New Jersey’s economy and logistics sector.
Bethann Rooney, port director at the Port Authority, said, “We are reinforcing the Port of New York and New Jersey’s reputation as a stable and reliable gateway no matter what’s happening elsewhere across the supply chain.”
