New York governor introduces revised Manhattan congestion pricing plan

NEW YORK — New York City’s congestion tolling plan, which will provide funding for the Metropolitan Transportation Authority, is back on — although it now faces opposition from the President-elect, as well as existing legal challenges.

New York Gov. Kathy Hochul said today (Nov. 14) that she would support the plan with a new, lower peak-hours toll rate — $9 for most drivers instead of the original $15. Tolling will start in January, possibly on Jan. 5; the initial toll rates will not be raised for at least three years.

“As I said from the start, a $15 toll was just too high in this economic climate. That’s why our plan cuts the daytime toll to $9 for cars,” Hochul said in a press release. “By getting congestion pricing underway and fully supporting the MTA capital plan, we’ll unclog our streets, reduce pollution and deliver better public transit for millions of New Yorkers.”

Hochul blocked institution of the toll plan in June, saying the cost was a “burden to working- and middle-class New Yorkers.” [see “New York governor halts Manhattan congestion pricing …,” Trains News Wire, June 5, 2024]. But the MTA had constructed a capital plan based on the projected $15 billion the toll would generate, and subsequently placed more than $16 billion in projects on hold as a result of the loss of that money [see “New York MTA votes to pause …,” News Wire, June 27, 2024]. The MTA has subsequently released a five-year capital plan calling for more than $68 billion in spending, although less than half that amount was funding, in part because of the lack of toll money [see “New York MTA sets first Open House …,” News Wire, Oct. 15, 2024].

Still to be answered is how well the reduced toll will provide the funding needed for the MTA. A state official told the New York Times that the MTA would still be able to use the toll revenue to secure bond financing, although the payback period might be longer. MTA officials told the newspaper they project the lower toll will generate about $500 million per year, as opposed to the $1 billion projected for the original plan.

Even with Hochul back on board, congestion pricing still faces hurdles. Among them is the opposition of President-elect Donald Trump, who said on social media in May — before the original plan was halted —that he would “terminate” congestion pricing in his first week in office. Through a spokesman, he told the Times that “businesses will flee” the city because of the toll.

The project requires approval from the U.S. Department of Transportation, which the city will seek to obtain before Trump takes office.

Meanwhile, one of the groups involved in a lawsuit against the toll plan — at least nine such suits have been filed — said it will seek an injuction to block the start of tolling. Other suits remain active. Gov. Phil Murphy of New Jersey, whose state is involved in one lawsuit, said in a statement that he remains “firmly opposed” to the plan, which he called “a way to take money from the pockets of New Jersey resident to bail out the MTA from a mountain of debt.” He said his administration would continue to fight the plan in court.

The MTA further explains congestion pricing on its website. The transit agency’s board is expected to vote on the new tolling plan next week.