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A growing number of New York State Senators are calling for an immediate investigation into the MTA’s $35 million contract with Allied Universal, a Pennsylvania-based security firm hired to combat fare evasion in NYC’s subway system. The contract has come under fire for its lack of transparency, questionable performance outcomes, and disregard for local labor.
A Secret Deal with Major Costs
In a letter sent to Governor Kathy Hochul, Senate Republican leaders, including Senators Mario R. Mattera, Rob Ortt, Andrew Lanza, and others demanded clarity around how the deal was approved and why an out-of-state vendor was selected without public oversight.
READ: Private Subway Guards Accused of Aiding Fare Evaders While MTA Foots the Bill
The contract, signed in 2022, quietly authorized the deployment of armed guards throughout the subway system. Since its inception, the number of Allied Universal guards has doubled to over 1,000, with some reportedly earning up to $100 per hour.
Poor Performance, Rising Costs
Despite the hefty price tag, the results have been concerning. Reports in the New York Post documented guards caught sleeping, loitering in diners, and even assisting fare evaders by holding open doors. Critics argue that this has only worsened fare evasion and done little to improve safety.
Senator Mattera called the situation “deeply troubling,” stating:
“We must find out how this out-of-state company was given this massive job with little to no guidance. We demand answers to protect all New Yorkers from this incompetence.”
Impact on Local Workers and Oversight
The senators are also questioning how this contract affects existing MTA personnel, particularly unionized employees with collective bargaining rights. Many argue that New York-based workers should have been prioritized for these roles.
Senator Dean Murray noted:
“First, they turn to an out-of-state entity instead of hiring New Yorkers. Then Allied Universal fails miserably as fare evasion worsens under their watch.”
Calls for Transparency and Accountability
Senators are demanding a full audit of the contract and its impact, along with answers to key questions:
- Who approved the deal?
- How much money has already been spent?
- Who oversees these guards?
- What is the actual impact on fare evasion and safety?
Senator George Borrello summed up the sentiment:
“New Yorkers are being taken for a ride, and not the kind they should be paying for. Governor Hochul and the MTA need to explain how this deal was approved, why an out-of-state company was selected, and how they plan to fix it before one more tax dollar is wasted.”
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