Governor Kathy Hochul’s on-again off-again Congestion Pricing scheme is now on again – for now. The tax is intended to raise millions in revenue for much-needed maintenance, repair, and upgrades to New York City’s MTA transit system.
President Biden’s Federal Highway Administration approved Hochul’s plan, which will go into effect on January 5, 2025—just 15 days before President-elect Trump takes over the White House.
Trump has been vocal about his intention to “terminate” the program when he takes office. The Trump Administration is going to be making the rules going forward. And, Trump will also have the purse strings.”
"We are pleased to have received formal approval from the Federal Highway Administration for the phase-in feature of the Central Business District Tolling Program,” Catherine Sheridan, president of MTA Bridges and Tunnels/Triborough Bridge and Tunnel Authority, said in a statement.
The Congestion Tax was originally scheduled to begin in June and charge $15 per car entering certain parts of Manhattan. Then, the Governor suddenly postponed the plan without any explanation. It is widely believed that Hochul was pressured to halt the wildly unpopular program by DC Democrats looking to take Congressional seats back in NY.
Now that the election is over, the Congestion Pricing Scheme is back. In an astonishing effort to fool the public, this time the Governor marketed it as a 40% off sale charging $9 instead of $15 despite the fact that it is actually a 100% increase since there was no congestion tax before.
Gerry Kassar, Chairman of the New York State Conservative Party said “Congestion pricing was an extraordinary slap in the face of an overwhelming majority of New Yorkers. Only the most hawkish of people, the most left-wing progressive types, believe that the congestion pricing makes any sense. And, the lower figure ($9) is meaningless, particularly since they brag about how in the next couple years they intended to raise it anyways.”
When asked if he thought Hochul might moderate after the election Kassar added, “A good example of not getting the message sent in the November election is Congestion Pricing. She will take actions that moderate a position if there is an end game that could involve the benefits for her politically.”
“She seems to think this is the time to do the opposite of moderation. This is the perfect time for the Governor to do these things because this is the longest period of time between now and when she is running for reelection,” said Kassar.
Kassar was clear that the move to implement Congestion Pricing is a big mistake and He feels Hochul has ignored minority communities in the city.
The scheme will face lawsuits, and President-elect Trump has already signaled his opposition. But for now, January 5 is the day. New Jersey Gov. Phil Murphy and the New York Trucking Association have already filed lawsuits in state and federal court seeking to overturn the tax scheme.