Financing
2. New York City General Obligation Bonds
3. The New York City Transitional Finance Authority
5. The New York City Municipal Water Finance Authority
6. Hudson Yards Infrastructure Corporation
The New York City Transitional Finance Authority
The TFA is a public authority of New York State created by the New York City Transitional Finance Authority Act in 1997. It was created to issue FTS bonds, secured primarily with the city’s personal income tax, to fund a portion of the capital program of the city.
The TFA was originally authorized to issue up to $7.5 billion of FTS bonds and notes. This authorization has evolved over time to permit TFA to have additional FTS debt outstanding, with amounts over and above certain levels subject to the city’s remaining debt incurring power under the state constitutional debt limit. The total amount of FTS debt authorized to be outstanding and not subject to the city’s debt limit is currently $21.5 billion, which will increase to $27.5 billion beginning on July 1, 2025.
Since July 1, 2024, the TFA has issued $6.9 billion in FTS bonds for capital purposes and approximately $4.4 billion in refunding bonds. The dates and principal amounts are shown in the table titled “NYC TFA Issuance”.
NYC TFA Issuance
($ in millions)
| Series | (N)ew $/ (R)efunding | Issue Date | TAX Exempt Amount | Taxable Amount | Total Par Amount |
|---|---|---|---|---|---|
| 2025 AB | R | 7/30/2024 | $2,250 | $210 | $2,460 |
| 2025 C | N | 10/1/2024 | 1,800 | 300 | 2,100 |
| 2025 D | N | 10/30/2024 | 1,500 | 0 | 1,500 |
| 2025 E | N | 1/7/2025 | 1,500 | 0 | 1,500 |
| 2025 FG | R | 2/25/2025 | 1,701 | 247 | 1,948 |
| 2025 H | N | 4/1/2025 | 1,800 | 0 | 1,800 |
| Total | $10,551 | $757 | $11,308 |
The TFA refunding transactions completed to date in fiscal 2025 generated approximately $379 million of debt service savings during the financial plan period.
The TFA plans to issue FTS bonds for capital purposes of approximately $7.9 billion, $6.0 billion, $7.0 billion, $7.3 billion, and $7.5 billion in 2025 through 2029, respectively.
In April 2006, the state enacted legislation authorizing issuance by the TFA of an additional $9.4 billion of bonds (Building Aid Revenue Bonds, or BARBs) to be used to fund certain capital costs for the Department of Education. This legislation also provided for the assignment to TFA of state building aid that had previously been paid directly to the city. As of March 31, 2025, there were approximately $7.5 billion of BARBs outstanding. The BARBs are rated Aa2 by Moody’s, AA by S&P, AA by Fitch, and have stable outlooks. The financial plan does not currently contemplate the issuance of BARBs for new money purposes.