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New York Gov. Kathy Hochul has postponed indefinitely a plan that would charge motorists entering Manhattan. This initiative was scheduled to begin at the end this month.
According to a source familiar with the matter who requested anonymity as the proposal had not been made public, Hochul may replace the tolling scheme with a tax imposed on New York City’s businesses.
The governor cited inflation as well as financial pressures on New Yorkers of working class as reasons not to implement congestion pricing.
She said in a prerecorded statement posted on the state website that she made the decision to do what was right for the people, who make our city flourish. “My focus has to be on putting money back in people’s pocket.”
The congestion pricing tolling plan is set to start on June 30 and will be the first toll plan in the U.S. It is expected that the tolling plan will bring in $1 billion per year, which would help modernize an over 100-year-old system that has been affected by heavy rains and severe flooding. The money was allocated to finance subway signal upgrades that would reduce train delays, electric buses and the extension of the Second Avenue subway line to Harlem.
“This is shocking,” said Andrew Albert. He was a member of the MTA board who voted for congestion pricing. It’s unreal. The longer you wait the more expensive it gets.
The move away from tolling would be a relief to drivers. Most of them would have to pay $15 just to enter Manhattan’s Central Business District, which runs from 60th Street down to the bottom of Manhattan. It’s a sudden change, too — almost all tolling gantries have been installed on Manhattan streets.
“I’m happy to say that we’ve stopped congestion prices in their tracks,” said New York congressman Pat Ryan who represents parts of New York City suburbs. “Now, it’s time to start working on a plan for the entire state and not just New York City,” said New York Congressman Pat Ryan.
The congestion pricing plan aimed to reduce traffic and improve air quality. Transit advocates have spoken out against this delay as it will stall important infrastructure upgrades and hurt MTA’s capacity to serve as a economic engine in the New York City region.
Kate Slevin is the executive vice president of the Regional Plan Association. This nonprofit organization promotes initiatives to improve the region’s economic health. “This move is an absolute betrayal of New Yorkers, and our climate.”
Politico and The New York Times had reported earlier on Hochul’s decision. Politico reports that a part of the decision to delay was based on the concern that the implementation of the law would hurt Democrats running in competitive House of Representatives elections this year.
The decision was made as a federal court judge overseeing a New Jersey lawsuit was expected to decide whether to put the plan in limbo.
New Jersey Gov. Phil Murphy thanked Hochul for pausing implementation on June 5, 2009.
Murphy said that “we have always shared a vision of growing our regional economies, investing in infrastructure and protecting our environment while creating well-paying jobs both sides Hudson River.”
Last year, state lawmakers increased the payroll tax on certain New York City companies to help raise additional revenues for the MTA since subway ridership has not yet reached pre-pandemic levels. About 70% of 2019 ridership is accounted for by average weekday subway usage.
It’s not clear if a different levy will raise the same amount of money for MTA, which operates New York City’s buses, subways and commuter rails. The MTA was to sell $15 billion in debt using the $1 billion from congestion pricing to pay for infrastructure needed to improve service and attract new riders.
The MTA’s multi-year capital plan would be severely impacted if congestion pricing was delayed or cancelled without a new funding source. The largest transit provider in the country will also require new funding for its next capital budget, 2025-2029.