New York Governor Kathy Hochul resurrected the once-dead and deeply unpopular Congestion Pricing scheme, a tax disguised as a toll that will cost you a pretty penny every time you drive to certan sections of Manhattan.
Now that the election is over, Governor Kathy Hochul has decided to reintroduce the toll, much to the delight of the MTA.
Instead of the $15/car price tag, the new effort knocks it down to $9 on most vehicles driving into Manhattan neighborhoods south of 60th Street. The tax is set to take effect on January 5th, 2025. It will be collected using license plate readers.
It is widely believed that Hochul suspended pursuing the Congestion Pricing tax plan until after the election due to pressure from House Democrat leadership who were worried about the unpopularity of the program in districts they hoped to take back in the November elections.
Assemblyman Mike Fitzpatrick (R,C,I-Smithtown) has issues with the Congestion Pricing tax plan, telling the South Shore Press, “I don't like Congestion Pricing, and I know the Governor is kind of in a bind on this and she's committed to it, but I think it's going to be a big problem in 2026 for her.”
“I really believe that there are other ways to get the revenue needed. There are other accounts that she (Governor Hochul) could look at that haven't been spent down. The five-year capital program that was last approved has only been spent halfway down. And, then there's also over $17 billion against other sources of revenue, and it's only borrowed $6.3 billion of that amount, and the state promised $3.1 billion direct funding outside of congestion pricing, and it's only delivered $511 million of that.”
Fitzpatrick highly recommends the Manhattan Institute report called ‘How New York’s Congestion Pricing System Could Have Been Saved’ by Nicole Gelinas as a resource on this issue.
Congestion Pricing taxation is wildly unpopular even as it promises millions and millions of dollars in revenue for the MTA which is desperately in need of repairs, improvements, and upgrades.
President Trump immediately denounced the effort and told the New York Post, “I have great respect for the Governor of New York, Kathy Hochul, and look forward to working with her to Make New York and America Great Again. But, I strongly disagree with the decision on the congestion tax. It has never worked, especially so with a city, town, or village that is trying to come back from very rough times, which can certainly be said of New York City. It will put New York City at a disadvantage over competing cities and states, and businesses will flee,” said President Trump.
Trump added, “Not only is this a massive tax to people coming in, it is extremely inconvenient from both driving and personal bookkeeping standards. It will be virtually impossible for New York City to come back as long as the congestion tax is in effect. “It will hurt workers, families, and businesses, but in particular, anything to do with jobs. It is the most regressive tax known to womankind (man!).”
New York State Conservative Party Chairman Gerard Kassar added his two cents to the new tax, stating, “Hardworking New Yorkers should thank President-elect Trump for fighting to protect their wallets when Governor Hochul and her progressive colleagues won’t. Governor Hochul insults the intelligence of New Yorkers by bringing back the controversial Congestion Pricing Tax days after the 2024 elections. Her craven, bait-and-switch scam on voters will be remembered as one of the most nakedly disingenuous political ploys in Empire State history. The 2024 election results were predicated upon the understanding that Mrs. Hochul’s congestion tax was effectively gone. There will be no such misunderstanding in 2026.”
New York always tends to look to spend more and take more from the taxpayer rather than look toward cost-cutting. Fitzpatrick added, “There's also the issue, and this is what troubles me most about this, that we just have this reflex of going to the taxpayer for more money when we have antiquated and very expensive work rules that need to be looked at,” says Fitzpatrick.
“For example, one that's always a stickler is an engineer who gets paid two full days of pay if that engineer drives an electric train in the morning and a diesel train in the afternoon. Now that that needs to change. There's no reason to pay two full days pay for driving two different types of trains and that's written into the union contract,” said Fitzpatrick.
Fitzpatrick says, “What always troubles me is that it just seems easier to keep piling on to the taxpayer or the ratepayer rather than take a look at expenses or work rules. I understand nobody wants to fight with the unions and the governor but, we need to have these conversations. A lot of people might be okay with $7 if the odd work rules and other cost-saving measures happened at the same time.”
“We could use the new federal Department of Government Efficiency at the state level. That’s what I like so much about what Trump is doing right now because he's not even in office yet and things are starting to move in a positive direction on several fronts, ” Fitzpatrick said.
Fitzpatrick brought up the real issue of needing to be able to have free entry into and out of NYC. He says, “What would people think if Suffolk County said we need congestion pricing in Suffolk County to raise revenue? We are going to charge an extra $9 bucks to drive into Suffolk County as a revenue raiser?”
“You know, that's, in a sense, they're already doing that with red light cameras and speed cameras. And again, why are we seeing so much of that in areas like Nassau Suffolk and elsewhere?”
“It's because the cost of government is, is getting expensive and the people in charge, you know, with the fiduciary responsibility to the taxpayers are not living up to their responsibilities” Fitzpatrick concluded.