BILL
SUBJECT
transportation fringe benefits.
DATE
The Business Council of New York State supports S.3145 (Cooney)/A.1486 (Rivera), authorizing employers to offer employees the benefit of using pre-tax earnings for qualified transportation fringe benefits. This legislation provides a practical, forward-looking tool to help address New York’s ongoing affordability crisis by reducing one of the most consistent and unavoidable expenses working families face: the cost of getting to work.
New Yorkers across every region of the state are feeling the strain of rising costs. Housing, groceries, utilities, insurance, and childcare have all increased, leaving many households with little room in their budgets. Commuting is a necessary expense tied directly to employment, yet it often receives less attention in affordability discussions. For many workers, transportation costs, whether for transit fares, gas, tolls, parking, ride-share trips, or bicycle expenses, can total hundreds of dollars per month. Allowing employees to use pre-tax income to cover these costs is a straightforward way to deliver meaningful savings without new spending programs or tax increases.
By reducing taxable income through voluntary payroll deductions, this approach effectively increases take-home pay. Employees who participate could access up to $200 per month in eligible ride-share or bike-share benefits, in addition to traditional transit and parking options. Over the course of a year, the savings can be substantial, providing families with added flexibility to manage rising household expenses or build financial security. In a state where affordability concerns are influencing workforce participation and migration patterns, policies that put money back into workers’ pockets are both timely and necessary. Importantly, this measure reflects the realities of how New Yorkers commute today. Transportation is increasingly multimodal. Many workers combine commuter rail or bus service with a bike, a personal vehicle, or a ride-share trip to complete the “first mile” or “last mile” of their journey. Forty-three percent of Lyft riders use the service to commute to/from work, while 58% use the service to get to/from public transit, underscoring how integral flexible transportation options have become to the modern workforce. At the same time, millions of New Yorkers continue to rely primarily on public transit or personal vehicles. This legislation does not favor one mode over another; rather, it ensures that pre-tax commuter benefits are broad enough to support the full range of commuting patterns across urban, suburban, and upstate communities.
The proposal also addresses a practical challenge: many employees do not fully utilize existing transportation benefits offered by their employers. Often, current programs are limited in scope or do not reflect the flexibility workers need. By modernizing and expanding the range of qualified expenses, this policy makes participation more accessible and more relevant, increasing the likelihood that employees will take advantage of the benefit and realize real savings. Employers stand to benefit as well. Offering robust commuter benefits enhances overall compensation packages and strengthens recruitment and retention efforts in a competitive labor market. Businesses may also see payroll tax savings when employees opt into pre-tax programs, creating a shared incentive structure that supports both workforce well-being and operational stability. At a time when companies are focused on attracting talent and managing costs, voluntary, market-based tools like this are especially valuable.
Reducing commuting costs also supports broader economic goals. When transportation is more affordable, workers have greater flexibility to pursue job opportunities that may be farther from home or require multiple modes of travel. This strengthens labor market mobility, expands access to opportunity, and supports regional economic growth. In addition, encouraging transit, biking, and shared transportation options can help reduce congestion and improve overall system efficiency. Simply put, this bill is right on time.
At its core, this legislation is a commonsense response to the affordability pressures facing New Yorkers. It leverages existing tax structures to provide targeted, practical relief; it reflects the diversity of commuting patterns across the state; and it supports both employees and employers in a balanced, flexible manner. By easing one of the most consistent costs associated with employment, this measure strengthens household finances, enhances workforce mobility, and reinforces New York’s economic competitiveness.
For these reasons, The Business Council of New York State strongly supports this proposal and urges its immediate passage, which provides economic relief to New Yorkers.