Listen to this articleNew York Gov. Kathy Hochul in November resuscitated that state’s controversial congestion pricing plan – reigniting a battle that had been dormant for months.
In June, just weeks before the toll on vehicles traveling south of 60th Street in Manhattan was set to begin – Hochul announced an indefinite pause. The prevailing wisdom was that the delay was a result of the political landscape, with Democrats facing increasing headwinds and affordability issues at the top of the electorate’s minds.
But a little more than a week after that election – which was won by President-elect Donald Trump along with a Republican trifecta at the federal level – Hochul announced Nov. 14 that congestion pricing would move forward, albeit at a reduced rate from the original plan.
Instead of a $15 peak rate for cars, the revised plan calls for a $9 toll – with Hochul framing it as 40% reduction.
“As I said from the start, a $15 toll was just too high in this economic climate. That’s why our plan cuts the daytime toll to $9 for cars,” said Hochul Nov. 14. “By getting congestion pricing underway and fully supporting the MTA capital plan, we’ll unclog our streets, reduce pollution and deliver better public transit for millions of New Yorkers”
“New Yorkers deserve cleaner air, safer streets and ambulances that can get to them without gridlock, and the Governor is stepping up for them and for riders who need trains and buses to get them where they have to go — just like she did with the Budget in 2023,” said Janno Lieber, CEO of the Metropolitan Transportation Authority. “Now you’re seeing it again, a huge milestone for 6.5 million commuters. We want to bring more frequent and reliable service — to all our customers — just like we have on the 7 and L lines where upgrades are already complete.”
Cost breakdown
Under the plan, daytime E-ZPass tolls will be set at the following levels: Passenger vehicles (once per day): $9; motorcycles (once per day): $4.50; small trucks and non-commuter buses: $14.40; large trucks and sightseeing buses: $21.60.
In addition, per ride fees for all trips to, from or within the central business district will be 75 cents for taxis and black cars and $1.50 for app-based for-hire vehicles.
Tunnel crossing credits were reduced by 40% from original plan. And nighttime discounts will be 75% daytime tolls.
But the “reduced” rate is not permanent. The plan calls for a six-year phase-in, meaning the automobile rate will be $9 at peak times from 2025 through 2027; $12 from 2028 through 2030; and finally hit the originally planned $15 toll in 2031.
Hitting the gas
Despite that near universal backlash from New Jersey and other disaffected boroughs and stakeholders, New York officials were undeterred, and things have moved quickly since that Nov. 14 announcement.
A little more than a week later, the U.S. Department of Transportation Federal Highway Administration quickly approved the new plan, which is set to start Jan. 5, 2025. “FHWA concludes that the Re-Evaluation 2 confirms that the phase-in of the adopted toll structure and impacts associated with it was analyzed and mitigated accordingly,” the FHWA wrote to the project sponsors – the MTA, New York State Department of Transportation and the New York City Department of Transportation. “Thus, FHWA finds that no additional environmental analysis is warranted. The conclusions in the Final Environmental Assessment and Finding of No Significant Impact remains valid.”
“We are pleased to have received formal approval from the Federal Highway Administration for the phase-in feature of the Central Business District Tolling Program, and in compliance with federal law and regulations, New York State DOT, New York City DOT, TBTA, and the federal government have all signed the Value Pricing Pilot Program Agreement,” said MTA Bridges and Tunnels/Triborough Bridge and Tunnel Authority President Catherine Sheridan in a Nov. 22 statement.
A federal suit brought in New Jersey is one of several by different groups, townships and counties attempting to thwart congestion pricing. A hearing in Manhattan federal court is slated for Dec. 20 stemming from a suit brought by New York stakeholders opposed to congestion.
As all of these different actions play out, the clock is ticking fast – with just under a month until congestion pricing is set to launch.
And then of course, there is the question about how the incoming Trump administration will handle the situation.
In a Nov. 14 social media post, Trump expressed his opposition to congestion pricing.
“I have great respect for the Governor of New York, Kathy Hochul, and look forward to working with her to Make New York and America Great Again,” said Trump. “But I strongly disagree with the decision on the congestion tax. It has never worked, but especially so with a city, town, or village that is trying to come back from very rough times, which can certainly be said of New York city. It will put New York City at a disadvantage over competing cities and states, and businesses will flee.”