Maryland budget pledge and regional talks narrow WMATA’s FY25 cliff but service cuts and fare hikes still loom

Steve McCullough, the Department of Legislative Services analyst, told the Public Safety, Transportation and Environment Subcommittee that WMATA’s fiscal stress for FY25 stems primarily from the phase‑out of roughly $2.8 billion in federal operating assistance and a still‑lower ridership base compared with 2019. "As that goes away, that needs to be backfilled," McCullough said, summarizing data that showed 2023 ridership remained about 36% below 2019 levels and farebox recovery far short of pre‑pandemic percentages.

Paul Wiedefeld, Maryland’s transportation secretary, credited Governor Moore’s $150 million dedicated contribution toward WMATA’s FY25 shortfall with helping to prompt matching proposals from the District and Virginia. "Thanks to Governor Moore's leadership, we were able to advance $150,000,000 in the fiscal year 25 budget to partially address the fiscal issues facing Metro," Wiedefeld said. DLS’s recommended action for the committee was to concur with the governor’s allowance for WMATA’s operating and capital grants.

Randy Clark, WMATA’s general manager, described a revised GM budget that combines jurisdictional contributions, $50 million in recurring internal efficiencies and other measures to avoid the most severe service reductions. Clark said Metro’s revised proposal would still include targeted short‑term service adjustments — such as running more six‑car trains rather than eight‑car consists and shortening peak windows — and an effective fare change that staff calculate would bring roughly $24 million in revenue. He warned, however, that some measures in the original GM proposal — planned elimination of 67 bus lines, closure of 10 stations and a broad service‑frequency reduction — were being mitigated only by the new funding conversation.

Labor and advocacy groups who testified urged fuller and longer commitments. "Fare increases hit working people the hardest and are regressive," Matthew Girardi of ATU Local 689 said, urging Maryland to provide larger support to prevent wage freezes and big fare hikes. Environmental and planning advocates urged long‑term regional funding and stressed transit’s role in housing and emissions reductions: "Transit funding should be the state's top transportation priority," Carrie Kosicki of the Coalition for Smarter Growth testified.

Analysts and WMATA officials urged the three jurisdictions to reach an agreement soon. McCullough noted that the state’s dedicated purpose account of $150 million, combined with increased shares from D.C. and Virginia, could "negate most of those service cuts," but only with an interjurisdictional pact. Clark cautioned that while the FY25 package eases immediate pressure, without a durable regional revenue stream the same conversation will reoccur in FY26 and beyond.

Next steps: DLS recommended concurrence with the governor’s allowance; WMATA officials and the secretary said they expect negotiations among the three jurisdictions to continue through spring and that any final agreement must be enacted by law before the budget’s effects are final.