Hochul revives congestion pricing before Trump can block

💲The revived plan would reduce the additional toll to $9

💲President-elect Donald Trump promises to kill the plan his first week in office

💲Gov. Phil Murphy and Reps. Josh Gottheimer & Tom Kean vow to fight the plan

Rather than alienate suburban commuters in an election year, New York's governor slammed the brakes last spring on a plan to launch America's first “congestion pricing” tolling system, which aimed to discourage people from driving into the most traffic-choked parts of Manhattan by slapping them with a $15 toll. New York Gov. Kathy Hochul said it was the wrong time to hit drivers or businesses with new costs.

Now, with President-elect Donald Trump headed for the White House, Hochul 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.

The Democrat’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.

“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.

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.

Public transit and environmental advocates howled with protest last May when Hochul “paused” the congestion pricing system just weeks before it was about to be switched on. Other cities around the globe, including London, Stockholm, Milan and Singapore, have similar systems, but New York's system would be the first in the U.S.

The aim of the such systems is to reduce traffic and pollution while encouraging use of public transit systems.

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Trump: 'The most regressive tax known to womankind'

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.

Transit advocates lauded the program’s return.

“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.”

Tom Wright, president and CEO of Regional Plan Association, another transit-focused group, said reviving the toll "is vital for New York and will support our regional economy, a healthy transit system, and improved air quality.”

It was unclear, though, whether the plan might still face obstacles.

Trump, whose Trump Tower penthouse would be within the congestion pricing zone, is among those who have blasted the program. In a social media post last May he vowed to terminate it in his first week back in office. On Thursday, he said 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," Trump 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.”

Not clear how lower rate affects MTA

The program, which state lawmakers approved in 2019, stalled for years awaiting a required federal environmental review during the Republican’s first term before being approved by the administration of President Joe Biden. It wasn't clear whether lowering the toll amount might allow the federal government to demand a redo of the environmental review.

In a statement, the Federal Highway Administration said it is "working expeditiously to finalize the needed steps to complete the agreement.”

“In general, it is harder to take something away once it is in place,” said Nicholas Klein, a professor of city and regional planning at Cornell University in Ithaca, New York. “Of course, all this could have been avoided had the governor not interfered and delayed congestion pricing months ago. Congestion pricing would be in place, congestion reductions apparent, and revenues raised for public transit.”

It is also 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.

Political cost

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 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.

Laura Gillen, a Democrat who won a close election for a U.S. House seat in suburban Long Island, slammed the prospect of a revived toll.

“We need a permanent end to congestion pricing efforts, full stop,” she wrote on the social media site X. “Long Island commuters cannot afford another tax.”

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