With 25 days to go before the Metropolitan Transportation Authority plans to launch a state-mandated congestion pricing scheme for vehicles entering parts of Manhattan, the controversial toll program has been put on hold indefinitely by an unlikely suspect — New York Governor Kathy Hochul.
Hochul released a pre-recorded video statement Wednesday afternoon saying the program would harm New Yorkers struggling with an affordability crisis, but she sought to reassure residents that she is committed to securing additional funding for the MTA and will “continue to find strategies to fight congestion.”
“The idea behind the congestion fee is that it would encourage many existing drivers to switch to transit, but now there’s a third possibility… drivers could now choose to stay home altogether,” Hochul said. “Realistically, a $15 fee might not seem like much to someone with the means, but it could break a middle-class household’s budget… I can’t put another burden on working-class New Yorkers.”
Hochul said she has directed the MTA to “indefinitely pause” a program that was set to begin collecting tolls from drivers on June 30.
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Gov. Phil Murphy, who has become an outspoken critic of congestion pricing and even sued the federal government over the issue last year, thanked Hochul for putting a stop to the program.
“Although we have had differing views with our colleagues in New York on the implementation of congestion pricing, we have always had a shared vision to grow our regional economy, invest in infrastructure, protect our environment, and create good-paying jobs on both sides of the Hudson River,” Murphy said in a statement. “We fully embrace the notion that Manhattan’s success is tied to the prosperity of the entire tri-state region.”
News of Hochul’s desire to suspend the tolling program — under which cars entering Manhattan below 60th Street would be charged anywhere from $3.75 to $15 depending on the time of day — was first reported by Politico on Tuesday night.
The article cited four unnamed sources who said there were concerns about how the plan would affect Democratic House candidates in suburban districts competing for seats in this year’s election, as the party tries to take back control of the U.S. House of Representatives.
As recently as two weeks ago, Hochul told the audience at the Global Economic Summit in Ireland that New York City stuck to congestion pricing for 60 years “until we got it done earlier this year.” She proudly announced that New York City would be the first city in the U.S. to join cities like London, Stockholm and Singapore, where congestion pricing programs were successfully implemented.
“It took a long time because people were afraid that drivers would be forced to do things their way,” Hochul said. “But, just like with housing, if we’re serious about making cities livable, we have to get over this.”
Hochul has also promoted congestion pricing as a solution to improving the environment, the region’s mass transit system, and safer streets.
“We’re setting the standard here in real time for how we can achieve cleaner air, safer streets and better transportation,” he said at a press conference last June, as the region’s skies turned black and unhealthy orange haze as smoke swept south from wildfires in Canada.
The plan was required to raise at least $1 billion annually for the MTA’s capital program, according to a state law passed in 2019. Hochul offered a vague strategy for making up the shortfall in her statement Wednesday.
“We’ve already had to prepare for the possibility that congestion pricing could be delayed; we’ve set aside funds to support the MTA Capital Plan and are currently looking for other funding sources,” he said. “We remain fully committed to pursuing all the improvements New Yorkers have asked for.”
But he did not elaborate on what those various funding sources might be. A query to Hochul’s office was not immediately answered.
The toll would have affected New Jersey and other drivers who use the Holland and Lincoln tunnels to get into Manhattan — tunnels that are already tolled by the Port Authority of New York and New Jersey — though they were eligible for a $5 credit from the MTA. Low-income drivers, regardless of where they live, can also sign up for a 50% discount on peak-hour tolls.
This could impact NYC businesses recovering from the pandemic
One of the other reasons reportedly cited behind his sudden hesitation about congestion pricing is that it could hurt businesses in New York City that are trying to get back on track after the pandemic, which is in stark contrast to his description of the city last year.
“Today we have diagnosed the disease. We have the medicine. We can make it better,” he said last June. “And ultimately the body — this vibrant body known as New York City — will be so healthy and vibrant and live forever because of what we’re doing here today.”
On Wednesday, Hochul said New York City’s recovery “is by no means complete, and we cannot afford to lose momentum.”
All eyes were on the federal judge in New Jersey, who will issue his opinion on a lawsuit filed this month by New Jersey demanding the MTA conduct a more thorough environmental review of the congestion pricing plan and its potential impact on the Garden State.
Victory in New Jersey
Meanwhile, the plan’s biggest critic in New Jersey celebrated a victory.
“After five years of fighting, it looks like New York has done right by hardworking Jersey families and rolled back its abusive congestion tax,” U.S. Rep. Josh Gottheimer said in a statement. “We threw the kitchen sink at New York — and then some more — and got it done.”
“Today, Jersey families, their wallets and the environment have won a huge victory,” he said. “As I always say, don’t mess with Jersey.”
Bergen County Executive Jim Tedesco thanked Hochul for “listening to the concerns of residents and leaders across the New York metropolitan area. It is clear that congestion pricing is not a solution for relief, but simply a plan to redirect negative environmental conditions into other neighboring communities in Bergen County and Manhattan, just a few miles away.”
“This is a huge win for the people of Bergen County and everyone who does business in Manhattan,” Tedesco said.
The lawyers are upset
But supporters of the program are upset by the change. Kate Slevin, executive vice president of the Regional Plan Association, called the change a “betrayal.”
“Delaying congestion pricing will only hurt the millions of transit riders who depend on improvements and hinder the economic success of our broader region,” Slevin said. “It also means delays to critical transportation projects like faster service on the A/C lines, station upgrades and bus electrification, along with all the jobs that come with them.
“This move is a total betrayal of New Yorkers and our climate,” Slevin said. “We urge the governor to stick to his commitment to advancing congestion pricing and not succumb to politics.”
RPA, a nonprofit research and advocacy group, first proposed the idea of congestion pricing nearly three decades ago.
staff Writer Katie Sobko contributed to this story.
