New York State governor pauses New York City congestion pricing

On 5 June New York State governor Kathy Hochul directed New York MTA to pause the central Manhattan USD 15 congestion pricing scheme due to come into effect on 30 June. 

 

This puts investment in doubt as USD 15bn was expected to be raised from bond issues supported by congestion pricing revenue; work on the USD 7.7bn Second Avenue subway phase II extension was shut down straight away. 

 

MTA has USD 28bn in projects, but without the congestion charging, only USD 13bn in funds to carry them out. They will have to prioritise repair and maintenance projects over expansion and upgrades. 

 

Hochul said her decision was based on the economy, New York City’s recovery, and hardship concerns for city residents. 

 

The congestion charge would have applied in Manhattan below 60th Street with cars paying USD 15 electronically to enter the area from 05.00-21.00 (trucks would pay USD 24 and taxis USD 1.25); a vehicle would be tolled only once per day. 110 toll gantries have already been installed. MTA estimated 10 000 fewer vehicles.day within the congestion zone, reducing pollution. 

 

Ironically just a few days after Hochul’s decision was announced, the federal government gave its approval to the plan. 

 

Local transit advocates pledged to fight the governor’s decision in court, arguing that she does not have the power to reverse the state statute made in 2019 to authorise the scheme. The MTA board is due to meet on 26 June to consider the matter.