Watch out, New Jersey commuters: NJ Transit’s budget could be one of several public-transportation credit casualties if the standoff in Washington, D.C., drags into the spring.
The federal government shutdown is now in its 20th day, with still no end in sight. If it extends long enough, it could cause a budget crunch for the public transportation systems that get support from the Federal Transit Administration. Most of the FTA’s programs are now closed, and 90% of its staff is furloughed, because of the shutdown, according to a note from credit-ratings firm Moody’s.
“US mass transit systems have temporarily lost financial aid that supports a wide range of needs, from daily maintenance and service to ongoing repair and expansion projects,” the firm’s analysts write.
Barron’s
By Alexandra Scaggs
Jan. 10, 2019 11:27 a.m. ET