Medallion taxi drivers relief from debt

New York Mayor Eric Adams.
Associated Press/John Minchillo/File

The Taxi and Limousine Commission and The New York Taxi Workers Alliance welcome a massive debt relief for New York City Medallion Taxi drivers after a long-awaited struggle. On Wednesday, Jan. 25, New York City Mayor, Eric Adams, along with United State Senator Chuck Schumer, the New York City Taxi and Limousine Commission Chair, David Do and several New York City public officials all gathered for the official announcement and to be a part the significant achievement, almost 1,800 medallion taxi drivers in the city will benefit from a restructuring loan, one of which they all agreed was long over-due, for the Medallion taxi drivers.

The city’s taxi Medallion Relief Program (MRP) has successfully worked to provide $356 million in debt relief to help relieve the struggling medallion taxi owners. All 1,789 of them have been forgiven with their loans.

Mayor Adams in commenting on the notable and historic achievement said, “our administration is finally ending the taxi medallion crisis and turning the tide for hard-working taxi drivers who provide New Yorkers and visitors with both an essential and quintessential New York experience… New York City must work for hard working people.”

The $356 million debt relief comes as the taxi owners such as the iconic yellow cabs, and other iconic cab drivers in the city find themselves unable to pay for the cost of their loans. The relief is a meaningful one as this assistance will prevent medallion owners from getting further into their debts, Mayor Adams said.

Senator Schumer in commenting on the work that the partners worked assiduously to enact said the program provide life-saving debt relief for the cab drivers said, “I am proud to have worked hand-in-hand with New York Taxi Workers Alliance, Mayor Adams and former Mayor de Blasio, local elected government… NYTWA, TLC, Marblegate and additional partners… to provide life-saving debt relief for cab drivers.” Several city officials also commented on the integral role of the medallion cabs in New York City despite their long hours, and noted that it is befitting that the taxi drivers be given equitable treatment. They thanked Mayor Eric Adams and his administration for his continued leadership in supporting the taxi drivers.

The initial agreement with Marblegate Asset Management and the TLC also included other partners such as Pentagon Federal Credit Union (PenFed). Under the Medallion Relief Program (MRP) principal loan balances have been reduced to $170,00 from balances as high as $750,000 and monthly payments in turn are capped at $1, 234 — down from an average monthly payment of $2,200. Marblegate Asset Management, Chief Investment Officer, Andrew Milgram, commended everyone who played a role in finalizing the agreement. This included elected officials, the TLC, NYTWA, and the Field Point Servicing Team, which restructured more than 1,000 Marblegate loans in just a few weeks.

According to the executive director of the New York Taxi Workers Alliance, Bhairavi Desal, “this debt relief for the medallion taxi drivers should bring some stability to everyone including, residents and visitors to New York City.”  The Medallion Relief Programalso added its call for other lenders to become a part of the continued effort to help the taxi drivers in New York City.