NEW YORK CITY—After months of legal wrangling over the issue, New York Gov. Kathy Hochul announced on Thursday that she has decided to remove the pause she placed on congestion pricing in New York City and that implementation of the program, with $9 tolls instead of the $15 originally envisioned, will begin on Jan. 5, 2025.
Drivers who enter Manhattan below 60th Street will pay the fees, in addition to any other standard tolls and expenses, in order to help the city qualify to receive $15 billion worth of bonds to finance far-reaching upgrades to public transportation. In theory, the policy aims to relieve air pollution as commuters seek out alternatives to driving to work.
At a Thursday press conference formally announcing her decision, the governor explained not only why it was time to unpause the policy but also her reasons for initially enacting the pause and for stating at a news conference in June that congestion pricing was untenable for families grappling with inflation.
“From day one, I have made affordability for your families a top priority. I always have, and I always will, fight to put more money in the pockets of everyday New Yorkers,” she said.
“That’s why, back in June, I stood up on behalf of hard-working families, and simply said no. No to a new $15 congestion toll that at that particular time was just too much.”
To have launched such a high toll at that time would have hurt working men and women struggling to make ends meet, she said.
Hence, she said, she paused the policy in June while she and fellow politicians and lawmakers studied the issue and tried to come up with a workable plan.
“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,” she said on Thursday.
The new plan entails cutting the original toll by 40 percent, from $15 to $9, the governor said.
Hochul estimated that the new lower toll would save daily commuters around $1,500 per year, when taking into account what they were originally on track to pay, and she promised discounts for commuters at the lower end of the income scale.
For example, car owners earning less than $15,000 per year will get a 50 percent discount on every toll after their 10th toll in a given month.
Further discounts will apply after 9:00 p.m. to encourage nighttime deliveries and ease congestion during the day, the governor said.
The daytime $9 toll will be more than sufficient to secure the $15 billion worth of bonds that were the congestion pricing’s original goal, Hochul said.
“We’re still getting the $15 billion to fund the MTA, and drivers are paying $6 less. This lower toll will still allow us to accomplish all, and I mean all, of the goals of congestion pricing—new modern signals, the long-awaited Second Avenue subway, new electric buses, elevators—and this will generate major investments for our suburban commuters as well,” she said.
Hochul then reiterated her belief that congestion pricing will curb gridlock and provide significant environmental benefits, especially for the Bronx.
The governor said she had already begun directing the MTA to make “major service enhancements” to at least 23 bus routes serving the outer boroughs.
The governor’s office did not respond to a request for comment by publication time.
