Congestion pricing tolls in Manhattan, scheduled to start on June 30th, were abruptly halted "indefinitely" by Governor Kathy Hochul.
Gov. Hochul slammed the brakes on the controversial congestion pricing due to concerns about its impact on New York City businesses and Suffolk County motorists who would have had to pay big bucks to drive into Manhattan.
Had it been rolled out as planned, the Big Apple would have been the first major city in America to implement such a toll-paying scheme. The plan would charge drivers from Suffolk County $15 during peak hours to enter Manhattan’s most congested areas below 60th Street. The price is meant to discourage drivers, but not be so high that businesses would suffer.
Governor Hochul scrapped the plan in a pre-recorded message, blindsiding the Metropolitan Transit Authority (MTA) who was counting on $15 billion congestion pricing would have generated, saying that “circumstances have changed” since the plan was first approved five years ago.
“Let’s be real: a $15 charge may not mean a lot to someone who has the means, but it can break the budget of a working- or middle-class household,” Hochul said. “It puts the squeeze on the very people who make this city go: the teachers, first responders, small business workers, bodega owners.”
Governor Hochul was clear, however, that she continues to support the plan and the goals of reducing pollution and city gridlock. Just six months ago, on December 6th, 2023, Hochul publicly praised the congestion pricing plan:
“Congestion pricing means cleaner air, better transit and less gridlock on New York City's streets and today's vote by the MTA Board is a critical step forward. This initiative will make New York City a global leader in transportation policy, and I'm grateful for the work of the Traffic Mobility Review Board to bring us to this milestone,” said Governor Hochul last December.
County and New York State lawmakers couldn’t be happier that Hochul flip-flopped on congestion pricing. Suffolk County Executive Ed Romaine said, “The decision to stall New York State’s congestion pricing plan is great news for hard-working Suffolk County families who must travel to Manhattan to make a living. With inflation making it harder every day for families to make ends meet, levying yet another tax on the backs of the working class is not the answer.”
“Gov. Hochul's last-minute reversal of congestion pricing exemplifies the political games she wanted to play. Ultimately, the plan was meant to collect more money from New Yorkers' pockets rather than protect the environment. This plan would have been economically counterproductive and would have placed unfair taxes on suburban commuters. The reversal of congestion pricing is a huge win for New York and for common sense. Creating a streamlined and sustainable MTA should be our top priority, not exploiting Long Islanders' pockets,” said New York State Assemblyman Joe DeStefano.
“Make no mistake, Kathy Hochul and the far-left Democrats were ready to implement a plan that would have hurt families and businesses. They are retreating to escape the wrath of the voters this November,” said Senate Minority Leader Rob Ortt (R-62).
Assemblyman Sam Pirozzolo (R-63) said on X, “Fantastic news. While Staten Islanders can find peace in knowing MTA Chair is weeping in the back of his taxpayer-funded chauffeured SUV tonight, the fight against congestion pricing and Albany insanity is far from over.”
Many think the brakes were hit for political reasons, not economic ones.
Hochul’s abrupt decision to delay the toll is widely believed to be driven by concern that the policy could hurt Democrats’ chances in November. Democrats hope to win House seats in the upcoming election and are mindful of not upsetting suburbanites who commute to NYC. Delaying the congestion-pricing scheme until after the election was reported by Politico to have been whispered into the ear of Hochul by House Minority Leader Hakeem Jeffries.
Environmentalists who believed the high cost of congestion pricing would have encouraged Suffolk County taxpayers to ditch their cars for public transportation blasted Hochul’s decision.
Julie Tighe, Executive Director of the League of Conservation Voters said, “We cannot drive our way out of the climate crisis – and we shouldn’t let a small number of drivers who refuse to take mass transit in the most transit-rich region of the country dictate transportation policy.”
Governor Hochul did not provide any information on how the state would replace the revenue that congestion pricing was meant to provide for the MTA.