The Metropolitan Transportation Authority (MTA) lost approximately $800,000 in potential savings over five years because its workers and contractors failed to comply with New York City's recycling laws, according to a report released Tuesday by the MTA's inspector general. The non-compliance resulted in hundreds of tons of recyclables being sent to landfills.
The investigation found that workers at MTA facilities were not properly separating recyclables, such as cardboard and paper, from regular trash. In instances where materials were separated, the contracted waste hauler, Action Carting Environmental Services, reportedly mixed them back in with general waste.
This failure led to a significant drop in the amount of cardboard and paper recycled. Between 2018 and 2024, the amount of cardboard and paper the waste hauler reported recycling decreased by nearly 80%, from 793 tons to 165 tons. The contract had estimated that approximately 576 tons of recyclables should have been processed annually.
The report noted that nearly all agency locations assigned recycling containers were serviced by single-compartment, rear-load garbage trucks, which are not equipped for proper recycling collection. Action Carting Environmental Services, based in New Jersey, secured a contract in 2019 valued at about $39.2 million, with a subsequent two-year extension worth $19.3 million. The contract stipulated the use of dedicated recycling trucks and often provided credits to the MTA based on market prices for recycled materials.
Representatives for Action Carting admitted in May 2026 that they had not consistently used a dedicated recycling truck and that drivers sometimes estimated recycling weights. The MTA's Asset Recovery unit, responsible for contract oversight, did not identify or investigate the substantial decrease in recycling despite billing records indicating recycling dumps occurred only weekly instead of the required five days per week.
Further findings indicated that MTA workers at 21 out of 40 inspected bus depots and repair shops were not separating recyclables from trash. Additionally, recycling containers at 23 sites lacked proper labeling, and some sites were missing bins altogether.
The inspector general estimated the MTA lost between $107,000 and $158,000 annually in missed recycling credits and unnecessary disposal fees for waste that could have been recycled. The report suggested that the MTA plans to implement requirements for GPS data and electronic weight information in future trash and recycling contracts. A separate audit examining Action Carting Environmental Services' performance and billing is pending.
An MTA spokesperson stated that the agency remains committed to environmentally conscious practices. The MTA has directed the vendor to change trash and recycling collection procedures and is retraining employees on proper sorting at transit facilities. Mandatory electronic billing with detailed weight information will be part of the next contract.