New York Governor Kathy Hochul is exploring options to revive a toll program aimed at reducing traffic congestion in certain Manhattan areas, which previously proposed a $15 fee for drivers. This initiative is being discussed as Hochul moves swiftly before President-elect Trump assumes office, as he has expressed opposition to the toll plan.
Following Trump’s election victory, Hochul and her team have been consulting with state legislators to assess the viability of reintroducing the congestion pricing plan, potentially at a reduced rate. According to sources familiar with the discussions, the governor is considering lowering the toll from $15 to $9 for most passenger vehicles entering Manhattan below 60th Street. The decision to reduce the fee could help alleviate the financial burden on commuters while also garnering support from lawmakers.
Initially, Hochul had suspended the congestion pricing program just weeks before its anticipated summer launch, despite the necessary infrastructure being in place. At the time, she cited concerns regarding the toll’s impact on drivers, but many viewed the halt as a strategic move intended to assist Democrats in local congressional elections during a period focused on economic issues. The add-on toll would have compounded existing fees at other entry points to the city, leading some to speculate that Republicans would leverage the issue against their opponents in the upcoming elections. Although several Democrats secured victories in those races, Trump’s campaign to end the congestion pricing plan poses a new challenge.
Time is of the essence for Hochul, as she has less than two months to preserve the program before Trump takes office. Throughout this process, she has maintained that the congestion pricing initiative would eventually be revived but had previously not articulated a concrete strategy for its return or addressed how to recover the anticipated billions in revenue it was meant to generate for New York City’s struggling public transit services.
To counterbalance the revenue loss from a reduced toll, Hochul’s office has suggested the potential implementation of a new online sales tax or payroll tax. These new taxes could possibly fund the transit system while easing the burden on daily commuters. While a representative from Hochul’s office refrained from commenting on the ongoing discussions, the governor reiterated her stance, emphasizing that the original toll amount of $15 is excessively high.
A critical consideration in advancing this program is whether the proposed decrease in tolls will necessitate a comprehensive environmental review by the federal government. Such a review could delay the process as it would need to be tackled during the new administration. The congestion pricing program has already faced delays, having been approved by the New York state Legislature back in 2019, with its implementation stalled for years during Trump’s first term due to similar review requirements.
The U.S. Department of Transportation has yet to respond to inquiries regarding the situation. Local political reactions to the potential revival of congestion pricing have been mixed. Laura Gillen, a Democrat recently elected to Congress from Long Island, expressed her concern about the impact on commuters, stating on social media that a complete withdrawal of congestion pricing efforts is necessary, noting that Long Island commuters are already burdened by high taxes.
Meanwhile, Andrew Albert, a board member of the Metropolitan Transportation Authority (MTA), endorsed the toll’s reinstatement but cautioned that lowering the fee to $9 may fail to meet the congestion pricing initiative’s original objectives. He voiced his doubts, expressing that the reduced fee might not adequately generate the required revenue, nor effectively reduce traffic through the city while improving air quality.