New York Gov. Kathy Hochul announced the indefinite suspension of the planned congestion pricing program, which aimed to improve air quality and reduce traffic in Manhattan. The decision came amidst concerns that the environmentally-focused policy could negatively impact Democrats in upcoming elections.
Hochul emphasized her commitment to a sustainable future while prioritizing the interests of working-class New Yorkers. “My commitment to a greener, more sustainable future is unwavering,” she said at a press conference Wednesday. “The little guy who feels like no one listens to them. I’m here to say, we are listening. This decision is about you.”
A source familiar with the matter earlier told Politico that Hochul is responding to concerns brought by House Minority Leader Rep. Hakeem Jeffries (D-N.Y.), who is vying to flip the House back blue come November. The GOP managed to reclaim a thin majority in the House two years ago largely due to several key Republican congressional victories in New York.
The move preemptively drew criticism from activists. “Pumping the brakes on congestion pricing would be a massive betrayal of several million public transit riders,” Danny Pearlstein, the policy and communications director at Riders Alliance, told the New York Times.
MTA Chair and CEO Janno Lieber warned in an interview with WABC-TV last month that there was “no Plan B” to raise the billions of dollars in funds the transportation authority needs for construction priorities if a judge rules against the congestion pricing in one of at least eight federal lawsuits challenging the proposed program.
Hochul is considering a new tax on businesses in New York City to fill the gap from a nixed congestion program, the Times reported. The new business tax would need approval from the state legislature.
Under the transit authority’s plan, trucks would be subject to a charge of $24 or $36 per trip, depending on their size. Most drivers in private passenger cars, in contrast, should expect to pay about $15, with lower rates for motorcycles and late-night entries into the city, according to the proposal finalized in March.
The latest lawsuit brought by the Trucking Association of New York last week argues the higher fees unfairly and unconstitutionally target the trucking industry, which will be forced to shoulder the increased costs, as truck operators don’t have flexibility on their driving routes or schedules, resulting in price increases on countless goods.
Cuomo, who stepped down during a sexual harassment scandal, had urged a delay in the congestion pricing months ago. In a March op-ed, he said “many things have changed since 2019 when we passed congestion pricing and while it is the right public policy, we must seriously consider if now is the right time to enact it.”
“New York City still hasn’t recovered from COVID; office occupancy is still at only 48.9%. For many, traveling to the city is no longer a necessity — and for some it is an unwelcome hardship,” Cuomo wrote for the New York Post.
Former Cuomo deputy, Melissa DeRosa, slammed Hochul, writing in an X post that there had been a “legitimate policy reason” for months to delay congestion pricing, but the governor had “doubled down.”
“This is exactly why @GovKathyHochul is so wildly unpopular,” DeRosa wrote earlier Wednesday. “There is — and has been for months — a legitimate policy reason to delay CP out of genuine concern for the fragile recovery of NYC’s economy. It is the right policy at the wrong time.”
A Manhattan federal court judge in May heard arguments in lawsuits brought by unionized public school teachers, politicians and other New Yorkers. In New Jersey, a federal court judge has also heard arguments in legal challenges brought by Murphy, Fort Lee Mayor Mark Sokolich and others.
Many of those lawsuits argue the tolling scheme was approved by federal transportation officials without proper scrutiny and the court should order transit officials to conduct a more comprehensive environmental study before rolling out the plan.
