Governor Kathy Hochul of New York is reportedly contemplating a proposal to reduce the congestion toll for Manhattan, and possibly eliminate it for municipal workers such as police officers and teachers.
The specifics of the governor's proposed reduction in the Midtown road tax, which was abruptly put on hold in June, remain unclear. However, it is understood that any formal proposal will not be made until after November's competitive election races, in a strategic move to support fellow Democrats.
According to The New York Post, the governor is also considering an exemption for government workers in the Big Apple, including police officers, firefighters, ambulance crews, and teachers, who commute to their jobs in the zone south of 59th Street. An anonymous official privy to Hochul's deliberations stated, "[The governor] said, `We know we have to lower [the toll]. Shes going to review the number." The official also revealed that the governor had suggested a potential waiver for city workers.
If these ideas are implemented, Hochul and state lawmakers will need to identify alternative funding sources for the Metropolitan Transportation Authority's (MTA) capital plan to compensate for the revenue loss. The MTA board is set to vote on its 2025-29 capital plan next month, which has already suffered a significant setback due to the stalling of the planned $15 toll. This toll was expected to generate up to $1 billion annually for transit maintenance, new rail cars, and expansion.
The MTA's previous environmental assessment of the plan, approved by the federal government, suggested that the toll could be as low as $9 during peak times for drivers entering Manhattans Central Business District and as high as $23. The MTAs traffic-mobility review board settled on $15 for motorists and higher tolls up to $36 for truckers during peak hours, with lower tolls overnight. Supporters argued that the pricing scheme would reduce congestion and pollution while providing a permanent revenue source for mass transit.
However, critics questioned these purported benefits, arguing that the toll would severely impact everyday New Yorkers who are already struggling. The MTA, which is responsible for collecting the toll, has already spent $500 million on installing readers and other technology for the program before Hochul abruptly ordered an indefinite pause.
There was widespread speculation that Hochul, who initially supported the new toll, succumbed to pressure from the Democratic White House and Democrats, including House Minority Leader Hakeem Jeffries of New York. They urged for the delay or scrapping of the toll to aid the party's efforts to regain control of the House of Representatives. Republicans planned to use the unpopular toll as a weapon against Democrats in six swing House races in New York.
In June, Hochul denied these allegations, stating that she made the decision because New Yorkers are still economically struggling post-pandemic and that the new $15 toll was too burdensome. John Lindsay, a spokesman for the governor, reiterated this stance in an email statement to The Post, stating, Like the majority of New Yorkers, Governor Hochul believes a $15 daily toll is just too much for working people trying to get by in todays economy.
The toll remains highly unpopular among New Yorkers. A recent Siena College poll found that 59% of New York voters want to scrap the congestion pricing scheme for Manhattan entirely. Staten Island Borough President Vito Fossella, a Republican and co-plaintiff in a federal lawsuit seeking to block the toll, echoed this sentiment, stating, Its bad policy. A lower toll is not going to cut it. Its a money-grabbing scam.
State lawmakers have indicated that Hochul has not yet presented a formal proposal, and it is unlikely to happen until she presents her 2025 State of the State policy agenda in January. Supporters of congestion pricing argue that lowering the tolling structure will delay the plan's implementation as it will require new approval from federal transportation officials.
Two lawsuits were filed last month in Manhattan state Supreme Court, claiming that Hochul did not have the authority to halt a state law approved by former Governor Andrew Cuomo enacting congestion pricing in 2019. As the debate continues, it remains to be seen how the governor's proposed changes will impact the future of congestion pricing in New York.
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