Gov. Hochul Proposes Lower Congestion Pricing Fee; Plan Meets with Mixed Reaction

NEW YORK—After putting congestion pricing on pause back in June, New York Gov. Kathy Hochul announced earlier today (Nov. 14) a lower daily congestion pricing fee of $9 to help fund the Metropolitan Transportation Authority’s capital plan and reduce congestion and air pollution in Downtown Manhattan. The governor reduced the fee from the original $15 charge that was to be instituted back in June.

The governor lifted the pause on congestion pricing now that the Trump administration prepares to take office in January. President-elect Trump has vowed to eliminate congestion pricing upon taking office. The governor’s plan features a 40% reduction in all tolls for vehicles entering the city’s Central Business District in Manhattan below 60th Street, saving commuters up to $1,500 per year.

The plan also includes new tools to reduce congestion and air pollution citywide. Additionally, Gov. Hochul committed to funding the proposed 2025-2029 MTA Capital Plan that was approved by the MTA Board in September—the largest capital plan for transit in New York State history.

MTA Chairman and CEO Janno Lieber and others expressed support for the lower tolling fee that the governor said would bring in the $15 billion to the MTA that the higher fee was projected to raise. However, a host of politicians have come out against congestion pricing and vowed to continue legal challenges to the tolling.

“As I said from the start, a $15 toll was just too high in this economic climate. That’s why our plan cuts the daytime toll to $9 for cars,” Gov. Hochul said. “By getting congestion pricing underway and fully supporting the MTA capital plan, we’ll unclog our streets, reduce pollution and deliver better public transit for millions of New Yorkers.”

The MTA’s Lieber said, “New Yorkers deserve cleaner air, safer streets and ambulances that can get to them without gridlock, and the governor is stepping up for them and for riders who need trains and buses to get them where they have to go—just like she did with the Budget in 2023. Now you’re seeing it again, a huge milestone for 6.5 million commuters. We want to bring more frequent and reliable service to all our customers just like we have on the 7 and L lines where upgrades are already complete.”

Concerning the MTA capital program funding, the governor said, “This $9 daytime toll is enough to secure the $15 billion in MTA funding that congestion pricing was intended to support. We’re still getting the $15 billion to support the MTA and drivers are paying $6 less.

Gov. Hochul’s new congestion pricing plan has won the support from the Regional Plan Association, League of Conservation Voters, Natural Resources Defense Council, Partnership for New York City and Real Estate Board of New York, among others.

The adjusted phase in tolling feature will be taken up by the MTA Board at its next meeting on Nov. 18. Under this plan, congestion pricing will be ready for implementation at midnight on Sunday, Jan. 5, 2025. The congestion pricing fees would be: passenger vehicles (once per day): $9; motorcycles (once per day): $4.50; small trucks and non-commuter buses: $14.40; large trucks and sightseeing buses: $21.60; tunnel crossing credits reduced by 40% of original plan; nighttime discounts of 75% of daytime tolls; per-ride fees for all trips to, from, or within the CBD: taxis and black cars: $0.75 and app-based for-hire vehicles: $1.50.

Additionally, the administration expects to achieve congestion reduction and air quality benefits, including a 5% reduction in vehicle miles traveled and a 10% reduction in the number of vehicles entering Manhattan’s CBD.

Under Gov. Hochul’s plan, MTA will not raise the initial tolls beyond the following percentages of the approved structure: 60% (i.e. a $9 daytime automobile E-ZPass toll) from 2025 through 2027 and 80% (i.e. a $12 daytime automobile E-ZPass toll) from 2028 through 2030.

Gov. Hochul’s congestion pricing plan commits to funding the low-income discount and every place-based and regional mitigation as already committed to, including: $15 million to replace diesel-powered Transport Refrigeration Units at Hunts Point Produce Market in the Bronx; $20 million to establish an asthma center and case management program in the Bronx; $20 million to implement electric truck charging infrastructure; $10 million to install air filtration units in schools near highways; $10 million to install roadside vegetation; $25 million to renovate parks and greenspace; $20 million to expand the NYC Clean Trucks Program; $5 million to expand the NYCDOT Off-Hours Delivery Program; a 75% discounted overnight toll to reduce diversions and encourage off-hours truck deliveries and a 50% discount on the daytime E-ZPass toll rate after the first 10 trips in each calendar month for low-income drivers.

The governor is also proposing a package of new measures that will help reduce traffic and air pollution throughout New York City and beyond.

The governor has lined up support in the State Legislature and among some business and environmental groups.

Partnership for New York City President & CEO Kathryn Wylde said, “Excess congestion costs our metropolitan region more than $20 billion a year as movement of goods and people is slowed by traffic. The governor’s decision to allow congestion pricing to proceed, even with a reduced toll, will benefit business and consumers across the region and is a critical component for financing a better, safer and more reliable transit system.”

However, the plan is not without its opponents. For example, Rockland County Executive Ed Day, a longtime opponent of congestion pricing, said in a statement: “We stand firmly against this misguided charge and commend our colleagues in New Jersey, Long Island, Staten Island, and especially Senator Bill Weber, who is actively pushing for a permanent repeal of the Congestion Pricing plan. He additionally is pushing legislation that would increase the Dutchess, Orange, and Rockland Fund Allocations (DORF) for mass transit improvements from $2 million to $10 million. Another bill would provide Rockland residents a rebate,” Day stated. He added, “Governor Hochul should eliminate Congestion Pricing entirely, and I pledge that my administration will continue our legal fight, alongside our allies in government, to protect the hardworking Rocklanders we represent from this unnecessary expense.”

Another staunch opponent of congestion pricing is New Jersey Gov. Phil Murphy, who released a statement shortly after the governor’s announcement. “I am firmly opposed to any attempt to force through a congestion pricing proposal in the final months of the Biden Administration. All of us need to listen to the message that voters across America sent last Tuesday, which is that the vast majority of Americans are experiencing severe economic strains and still feeling the effects of inflation. There could not be a worse time to impose a new $9 toll on individuals who are traveling into downtown Manhattan for work, school, or leisure.”

He later added, “I have consistently expressed openness to a form of congestion pricing that meaningfully protects the environment and does not put unfair burdens upon hardworking New Jersey commuters. Today’s plan woefully fails that test. I urge Governor Hochul to reconsider the plan, and I urge all elected officials in the region—including those set to take office in January—to speak out against this proposal. Meanwhile, my administration will continue the fight to block this plan in court.”