Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
New Jersey

Who Should Foot the Bill for Sandy’s Damage to Tracks and Train Tunnels?

Water rushing into the Hoboken PATH station through an elevator shaft after Hurricane Sandy in 2012. Photo credit: Port Authority of New York and New Jersey

As the East Coast surveys the damage from Hurricane Sandy, cities are still struggling to get their transit systems back up and running.

In New York City, there is no firm timetable for restoring subway service after train tunnels were flooded with a surge of saltwater, in what New York MTA Chair Joe Lhota has called the most devastating event to ever strike the subway system.

In Philadelphia, SEPTA is slowly bringing back service on subway and bus lines. The regional rail system is down at least until tomorrow, with the majority of the damage apparently from downed trees. Amtrak has also continued its suspension of service on the Northeast Corridor, with repairs pending on the track and signal systems, as well as the removal of trees and other debris.

New Jersey Transit was hit hard, with "major damage on each and every one of New Jersey rail lines," according to Governor Chris Christie, including washouts along the North Jersey Coast Line and at Kearny Junction, as well as flooding at rail hubs in Secaucus, Hoboken and Newark Penn Station, according to the AP. It could be seven to 10 days before PATH train service is restored.

DC’s metro came back online at 2:00 p.m. today, and there was no major flooding or damage reported to Baltimore’s and Boston’s transit systems.

Damage to infrastructure isn't the only cost of the hurricane -- lost productivity will also ding the economy, as workplaces up and down the coast stay shuttered for another day today.

One early estimate pegged the total damage caused by the storm at more than $20 billion, with insured losses at about $7 billion. Infrastructure repairs figure to account for a substantial portion of the costs. With transit agencies and local governments still feeling the fiscal squeeze, who will foot the bill?

Luckily, FEMA Administrator Craig Fugate says FEMA is flush with money for the response, including repairs to infrastructure, with a $7.8 billion disaster relief fund. That’s reassuring, after the agency was caught empty-handed in the wake of Hurricane Irene.

Transit has an extra cushion now, too, thanks to a provision in the new transportation bill, MAP-21, that created an emergency relief program for transit, similar to what exists for highways. Funds still need to be appropriated, but the Federal Transit Administration does have the authority to distribute funds to agencies in need.

Larry Hanley, president of the Amalgamated Transit Union, pointed out that the frequency of extreme weather events like Sandy can be attributed to greenhouse gas emissions, saying that the costs of the storm should fall on the fossil fuel industry. “Ultimately, who should pay is the oil companies,” he said. “They’re the people who are polluting the environment, the people who are causing this global warming that’s ‘not really happening.’ If ever there was clear evidence of climate change, it’s what we’ve been through over the last several months, with the hot summer and now this storm activity. Like the cleanup in the Gulf, they should be called upon to clean up after this storm.”

Equally important is who shouldn’t pay – transit riders. If the costs of cleanup and restoration fall to the agencies and operators, that will result in service cuts and/or fare increases for passengers. “Over the last several years, when there have been problems in agencies, the passengers are the ones who had to step up and take cuts in service and fare increases,” Hanley said. “They should be automatically exempted from this one.”

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday Video: The Secret History of Amtrak’s Mardi Gras Service

...and what it means for new passenger rail service across America.

December 19, 2025

Friday’s Headlines Walk the Line

If you're a capitalist, the market says there's a premium for living in a walkable neighborhood. So why not supply more to meet demand?

December 19, 2025

Talking Headways Podcast: Fighting to Win

Carter Lavin talks with Jeff Wood about the necessity of messy politics in obtaining street safety.

December 18, 2025

Streetsblog’s ‘Car-Free Carolers’ Bring the Joy, Mirth and Ho-Ho-Hope to this Holiday Season

Streetsblog's singers are back, belting out their parody classics to make a serious point: New York's roadways don't have to be dangerous places for kids and lungs, but can be joyous spaces for people to walk around, shop, eat or just ... hang out.

December 18, 2025

Study: More Protected Bike Lanes = More Micromobility Users

This ought to silence doubters who claim that no one's using that shiny new cycle track.

December 18, 2025

Thursday’s Headlines Are Hot-Blooded, Check It and See

Hopefully the Earth won't have a fever of 103 when judges get done with the Trump administration's proposal to dismantle greenhouse gas regulations.

December 18, 2025
See all posts