The Metropolitan Transportation Authority is pushing a “pause” on New York City’s congestion pricing plan, per Governor Kathy Hochul’s direction. The years-in-the-making toll program is set to roll out later in the month. No new start date has been set yet.
Hochul expressed concerns about the timing of the launch and the state of the city’s post-pandemic recovery. She also stated that she feared there might be “unintended consequences” for hard-working New Yorkers if the plan were implemented in its present state. Still, she remains focused on achieving the goals of congestion pricing. This included funding much-needed transit modernization and environmental sustainability.
According to an official briefed on the plans, the MTA is expected to put into circulation a list of projects that could be impacted without known funding. Congestion pricing was expected to be an industry worth $15 billion for the agency.
According to Hochul, implementing the toll at present would hurt everyday people too much. Midtown Manhattan has yet to recover to the point where this would be the right time for congestion pricing.
If the tax were implemented now, Hochul says that those who are economically strapped may opt to work from home rather than pay the toll, which would leave Manhattan offices with a 20% vacancy rate even emptier.
Hochul stated, “Circumstances have changed, and we must respond to the facts on the ground, not to the rhetoric from five years ago.”
When questioned about the decision on June 5, Mayor Eric Adams said that he was “all for” analyzing alternate options if there’s a way to generate the needed capital without impacting everyday people’s lives.
“We have to get it right,” Adams stated. “We have to make sure it’s not an undue burden on everyday New Yorkers and we have to make sure it’s not going to impact our recovery. If she’s looking at analyzing other ways we can do it, I’m all for it.”
How Would Congestion Pricing Affect People?
Congestion pricing would affect any driver entering the Central Business District (CBD), which stretches from 60th Street in Manhattan down to the southern tip of the Financial District. This means most drivers entering midtown Manhattan or below would have to pay a toll.
Different vehicles would be charged different amounts. The breakdown of the prices is as follows:
- Passenger vehicles: $15
- Small trucks (such as box trucks, moving vans, etc.): $24
- Large trucks: $36
- Motorcycles: $7.50
Total daytime rates would be effective from 5 AM until 9 PM each weekday and 9 AM to 9 PM on the weekends. The board called for toll rates in off-hours (from 9 PM.-5 AM on weekdays and 9 PM until 9 AM on weekends) to be around 75% less. This would amount to $3.50 instead of $15 for passenger vehicles.
Drivers would only be charged to enter the zone, not to leave or stay within it. Residents entering the CBD and searching a block for parking would not be charged.
Only one toll would be implemented per day, meaning anyone who enters the area, then leaves, and returns would only be charged the toll once for that day.
The review board said that implementing congestion pricing is expected to reduce the number of vehicles entering the area by 17%. That would equal 153,000 fewer vehicles in that portion of Manhattan. It also predicted that the plan would generate $15 billion, which would be used to modernize the subways and bus systems.
