Governor Kathy Hochul of New York announced her decision to shelve the congestion pricing tolling scheme just weeks before it was set to go into effect. The governor cited concerns about the unintended consequences of implementing the toll system, especially in the wake of the ongoing effects of the coronavirus pandemic on working families and New York City’s economy. The congestion pricing plan, which was the first of its kind in the nation, would have charged drivers using E-ZPass up to $15 to enter Manhattan south of 60th Street.
The governor’s sudden announcement sent shockwaves through the New York State Capitol, with many expressing disappointment over the decision. While congestion pricing was not a popular proposal, it was seen as a necessary step to address the financial struggles of the Metropolitan Transportation Authority and the city’s infamous gridlock. Despite years of debate and planning, most Democrats had come to accept the plan, viewing it as essential for the city’s economic recovery.
Some lawmakers and advocacy groups, including the Regional Plan Association, criticized Governor Hochul’s decision, calling it a betrayal of New Yorkers and a setback for efforts to combat climate change. However, there was also growing support for the move among lawmakers representing purple districts, who saw the decision as welcome news. Opposition to congestion pricing had been mounting in the Legislature, with some lawmakers viewing the plan as a burden on middle-class households.
In her address, Governor Hochul emphasized her commitment to public transit and ensuring that the transportation authority had the necessary funding for capital projects. She acknowledged that the city’s circumstances had changed since the plan was approved in 2019, with fewer workers in office buildings, increased crime rates, and fluctuating levels of tourism. The governor needs the approval of the authority’s board to halt the plan, but without the anticipated $1 billion in yearly revenue, the city’s transit system could face a crisis.
To address the funding gap left by halting congestion pricing, Governor Hochul is considering using money from the state reserves or implementing a tax on city businesses, which would require approval from the State Legislature. The decision to shelve congestion pricing reflects the changing circumstances and priorities facing New York City, as policymakers grapple with how best to support public transportation and ensure the city’s economic recovery in the post-pandemic era.
