NYC Transit Upgrade Hinges on $17 Billion of Uncertain Funds

New York City’s transit system is counting on a combined $17 billion in federal aid and projected cost savings — both tentative sources — to help fund a record-setting $68.4 billion capital plan.

The Metropolitan Transportation Authority’s multi-year program is the largest in its history. It will pay for about 2,000 new rail cars to replace trains from the 1980s, modernize signal systems, upgrade aging power substations, repair bridges and tunnels and launch a new light-rail line linking Queens and Brooklyn.

The plan includes $14 billion of expected federal funding, roughly in line with previous levels. It’s unclear whether ...