Gov. Kathy Hochul is working to delay the implementation of a plan to toll drivers entering Manhattan’s central business district, set to start on June 30. Despite believing in the environmental benefits of congestion pricing, she has concerns about the timing impacting commuters returning to the area after the pandemic. This move could benefit fellow Democrats facing voter backlash but would disappoint advocates who have worked for over a decade to bring this change to New York City. Hochul is considering a business tax to replace congestion pricing, which would require approval from the New York State Legislature.
The congestion pricing plan was designed to reduce traffic congestion in Manhattan and generate $1 billion annually for the Metropolitan Transportation Authority. Hochul’s proposal to implement a business tax would need legislative approval, a challenge with only two days left in the session. While congestion pricing would primarily impact drivers, a business tax would affect New York City businesses, potentially appealing to voters before the general election. Opposition to the tolling scheme has come from various groups, including unions, drivers, Gov. Phil Murphy of New Jersey, and former President Donald J. Trump, especially in an election year.
Major cities worldwide, such as Stockholm, London, and Singapore, have long implemented tolls to enter central business districts, with transportation experts hoping for New York City to follow suit. Former Mayor Michael R. Bloomberg lobbied for congestion pricing, but faced opposition in Albany. The plan gained momentum after the transit system’s challenges in 2017, with former Governor Andrew M. Cuomo finally supporting the idea. The pandemic further impacted Manhattan’s business district, leading to mixed support from current Mayor Eric Adams. Public transit advocates argue that delaying congestion pricing would betray riders and be influenced by political figures like Cuomo and Trump.
Hochul’s potential delay of congestion pricing has raised concerns about the impact on transportation funding and solving traffic issues in Manhattan. The plan to toll drivers entering the central business district has been years in the making and has faced opposition from various groups and political figures. While the move could benefit Democrats in upcoming elections, it also risks disappointing advocates and organizers who have long pushed for congestion pricing in New York City. The shift to a business tax revenue stream could present its own challenges in gaining legislative approval.
If Hochul’s plan to delay congestion pricing and implement a business tax moves forward, it could have far-reaching implications for transportation funding and traffic management in Manhattan. The tolling scheme was expected to provide significant revenue for the Metropolitan Transportation Authority, but its delay could impact the agency’s ability to fund capital construction projects. With just a few days left in the legislative session, securing approval for a business tax in place of congestion pricing seems uncertain. The potential shift in tax burden from drivers to businesses also presents a complex challenge amid ongoing political debates and opposition to the tolling plan from various stakeholders.
