A little more than five months after New York state indefinitely halted a congestion pricing program planned to fund New York City’s transit agency just weeks before the tolls were to be implemented, Gov. Kathy Hochul plans to relaunch the program that would be the first of its kind in the nation.
The rebooted plan includes a $9 base toll for passenger cars, down 40 percent from the $15 in the plan previously approved by the MTA. The base toll could increase over time. The MTA board could vote on the plan as soon as Nov. 20. The program, which also needs federal approval, could be launched as soon as midnight on Dec. 29, before President-elect Donald J. Trump, who opposes the program, moves. back to the White House.
The pause left in question about $15 billion in toll revenue that was expected to fund transit projects like the Metropolitan Transportation Authority’s (MTA) second contract for the $7.7 billion Second Avenue subway extension of dollars It also hit hard at the agency’s overall capital plan, forcing it to consider some tough cuts for a system already recovering from pandemic-era revenue slumps.
“New York is moving forward with congestion pricing and a plan that strengthens public transit while putting commuters first,” Hochul said in a Nov. 14 tweet at X.
Without giving details, Hochul said the revised plan covers funds to modernize signals, finish the Second Avenue subway extension and implement electric buses and new elevators. He also said he would pay for improvements to two commuter rail lines while providing less congestion and cleaner air.
In a letter calling on Trump to kill the program, five House Republicans representing New York called the plan an “oppressive tax regime.” Signed by Reps. Nicole Malliotakis, Mike Lawler, Andrew Garbarino, Nick LaLota and Anthony D’Esposito, the letter reads, “We ask for your commitment to end this absurd cash price congestion once and for all.”
New Jersey Governor Phil Murphy also opposes the plan, saying in a statement that “New Jersey was never meaningfully consulted on the design of this plan, either in its initial iteration or in the version announced today.”
Murphy also said the plan also negatively affects drivers “Experiencing strong economic strains and still feeling the effects of inflation.”
Hochul agreed with that sentiment when he paused the program, saying that implementing it at that time “risks too many unintended consequences for New Yorkers” facing the rising cost of living. Hochul said adding another cost could keep more workers from returning to city offices.
The new plan, however, gives drivers who make less than $50,000 a year a 50 percent discount on every toll after the tenth toll each month. Drivers traveling after 9pm will also receive discounts.
The original plan, which was set to go into effect June 30, would have added weekday tolls of $15 for most cars, and up to $36 for certain trucks, on local streets below 60th Street in manhattan
The state has already spent about $1 billion on the program, including installing equipment needed to automatically record cashless tolls.
Carlo A. Scissura, president and CEO of the New York Building Congress, welcomes the new plan, saying there is no other funding mechanism that can match congestion pricing.
“We desperately need investment in transit, and sustained bond funding is the only way to achieve the dual goals of critical repair work and achieving the transformative projects of the future,” Scissura said in a statement.
Tom Wright, president and CEO of the Regional Plan Association, also welcomes the implementation of congestion pricing.
“This historic step is vital for New York and will support our regional economy, a healthy transit system and better air quality,” he said in a statement. “We look forward to working with Governor Hochul, the state legislature and all stakeholders to move this plan forward. Congestion pricing is a policy whose time has come.”
The text of this article was updated on November 14, 2024 with new information.
