Rather than alienate suburban commuters in an election year, New York's governor slammed the brakes in June on a plan to launch America's first congestion pricing tolling system to discourage people from driving into the most traffic-choked parts of Manhattan.
Back then, Gov. Kathy Hochul said it was the wrong time to hit commuters and businesses with a $15 toll.
Now, with President-elect Donald Trump headed for the White House, the Democrat is hurriedly restarting the tolling plan — hoping to get it in place before the Republican follows through on a promise to kill it for good during his first week in office.
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Hochul's new plan, unveiled Thursday, calls for a $9 fee on most vehicles, which would help fund the city’s cash-strapped public transit system but at a lower price tag for drivers. It is scheduled to begin Jan. 5.
“I'm proud to announce we have found a path to fund the MTA, reduce congestion and keep millions of dollars in the pockets of our commuters,” Hochul said from her office in midtown.
The fee would be imposed on most vehicles driving into Manhattan neighborhoods south of 60th Street and collected via license plate readers. It would come on top of the often-hefty tolls drivers pay to enter the island borough via some bridges and tunnels.
Last spring, Hochul said she was worried that imposing the tolls could hinder New York City's continuing recovery from the COVID-19 pandemic. But she also promised her sudden about-face on the toll wasn’t permanent and that she would put forward a new plan.
Public transit and environmental advocates, who had howled when Hochul “paused” the plan weeks before its June launch, lauded Thursday's return.
Congestion pricing is aimed at reducing traffic and pollution while encouraging use of public transit. It has long existed in other cities around the globe, including London, Stockholm, Milan and Singapore, but not in the U.S.
“Congestion pricing cannot happen soon enough,” said Danny Pearlstein, a spokesperson for the Riders Alliance, which had been among the local groups that sued Hochul over her decision to halt the program. “Once the first tolls are collected, we will finally breathe easier.”
But the plan may face obstacles in Washington, with Republicans poised to take control of the White House and Congress in January.
The president elect, whose Trump Tower penthouse would be within the congestion pricing zone, said Thursday that he “strongly” disagrees with Hochul's decision to revive congestion pricing, calling it “the most regressive tax known to womankind.”
“It will put New York City at a disadvantage over competing cities and states, and businesses will flee," he said in a statement. “Not only is this a massive tax to people coming in, it is extremely inconvenient from both driving and personal booking keeping standards. It will be virtually impossible for New York City to come back as long as the congestion tax is in effect.”
It is unclear exactly how Hochul's revised plan would address lost revenue for mass transit from lowering the toll amount. The original fee scheme was expected to generate up to $1 billion a year for subways, buses and commuter rail systems.
On Thursday, officials insisted the money raised from the lower fee will still be enough to allow the Metropolitan Transportation Authority to go ahead with its plans for fixes and upgrades — but it may take longer to generate the revenue to pay back the costs, they said.
The toll can still be raised, though Hochul said she does not want to do that for at least three years.
Also yet to be seen: How politically costly the revival of the plan might be for Hochul among people who get around by car.
Lawmakers representing some of the city’s suburbs panned the toll’s return.
“Governor Hochul’s congestion pricing scheme is nothing more than a massive new tax on working families, daily commuters, college students, and local residents who just want to travel within the city they call home,” said U.S. Rep. Michael Lawler, a Republican who represents suburban communities just north of the city.
The blowback was bipartisan, with Democratic lawmakers blasting the plan as well.
"In a time of inflation, we won’t stand by as New York attempts to once again whack Jersey families with a $9 new tax. It will cost hardworking commuters thousands of dollars and is utterly absurd,” said Democratic New Jersey Rep. Josh Gottheimer.
Gov. Phil Murphy, a fellow Democrat, also pledged to fight the toll, saying that Americans showed on Election Day that are under
"New Jersey has never been meaningfully consulted on the design of this plan, either in its initial iteration or the version that was announced today. Perhaps that is because this effort has always simply been a way to take money from the pockets of New Jersey residents to bail out the MTA from a mountain of debt," Murphy wrote. "I have consistently expressed openness to a form of congestion pricing that meaningfully protects the environment and does not put unfair burdens upon hardworking New Jersey commuters. Today's plan woefully fails that test. I urge Governor Hochul to reconsider the plan."
MTA Chief of Policy and External Relations John McCarthy dismissed Murphy's criticisms of the plan, saying the governor should concentrate on improving NJ Transit instead.
"It’s hard to take advice from Governor Murphy, who has overseen the total collapse of his state’s mass transit system. New Jersey has been involved in the congestion relief process all along, even before they sued New York," McCarthy said in a statement. "If Governor Murphy wants to mess around with transit, he should start by making the trains run."
On Long Island, Democratic congresswoman-elect Laura Gillen and Republican Nick LaLota both vowed to bring the plan to a halt. LaLota took it a step further, saying he would push to hold or limit future federal funding for the MTA until congestion pricing is scrapped.
Residents and workers in midtown Manhattan also had reasons to grumble Thursday.
Miles Toussant, a 63-year-old chef who lives in midtown, said he’s concerned about the increased cost of visiting his 88-year-old mother in Brooklyn.
He checks in with her around three times a week, and prefers to take Ubers or taxis, but he also knows riders in the toll zone will be assessed a per-trip surcharge under the plan.
“There are also people who are still going to have to come into Manhattan regardless, so how much is it really going to change the congestion?" Toussant said. "And then what is that money going to be used for?”
Ed Saleh, whose family runs a produce stand across the street from where the governor made her announcement, said the new fee would come on top of $45 a day in tolls their company already pays to drive their large truck into midtown from New Jersey.
“If it comes into play, we have no choice: we still have to be here,” he said, noting that trucks will pay higher fees under the plan. “But it’s just not fair. We contribute a lot to New York.”
Saleh said he is also worried about the impact on foot traffic to their corner business.
“The tolls on their own are already crazy. To add another $9 on top of that is definitely going to hurt a lot of people,” he said. “The economy is not doing too great. People aren’t spending. Putting another fee is just going to make people’s lives a little tighter.”
