On November 14, 1973, the Metropolitan Transportation Authority agreed to subsidize existing Erie Lackawanna Railway service on the Port Jervis, which became part of Conrail on April 1, 1976. New Jersey Transit subsidized the service within in New Jersey. The MTA was only responsible for paying for Conrail's operation and maintenance of the line and stations. A federal statute, the Northeast Rail Services Act of 1981, was passed, relieving Conrail of its obligation to operate commuter rail service for local and state transportation agencies after December 31, 1982. To ensure that service was not terminated, the MTA created a wholly owned subsidiary, the Metro-North Commuter Railroad.