Gov. Hochul’s Pause on Congestion Pricing Spurs Two Lawsuits Seeking to Compel its Reinstatement

NEW YORK—As expected, New York City Comptroller Brad Lander and a coalition of lawyers, plaintiffs and transportation and economic advocates announced on July 25 two new lawsuits challenging Gov. Kathy Hochul’s indefinite pause of New York City’s congestion pricing plan that seek to compel its implementation.

The first lawsuit, City Club of New York et al v. Hochul, led by the civil rights firm Emery Celli Abady Brinckerhoff Ward & Maazel LLP, challenges Gov. Hochul’s authority to single-handedly block implementation of the 2019 MTA Reform and Traffic Mobility Act, passed by both houses of the State Legislature and signed into law by the then-governor, which mandated the design, development, building, and operation of the Central Business District Tolling Program, commonly known as congestion pricing.

The second lawsuit, Riders Alliance v. Hochul, led by the environmental litigation nonprofit Earthjustice, challenges the governor’s decision on the basis of New York State’s Climate Leadership and Community Protection Act, which requires New York to reduce economy-wide greenhouse gas emissions 40% by 2030, and requires state officials to act in a manner consistent with mandated targets. The lawsuit also alleges that the governor’s decision violates the state constitutional right to clean air and a healthy environment that was added to the state constitution in 2021.

The suits argue that the governor’s failure to enact congestion pricing violates both laws, and the success of either will result in the implementation of New York City’s congestion pricing plan.

“When Governor Hochul halted congestion pricing last month, she singlehandedly deprived millions of subway and bus riders of $15 billion worth of transit improvements like more frequent trains, new subway lines, faster buses and greater accessibility — and she also violated two state laws and the state constitution,” said New York Comptroller Lander. “If her action is not reversed, hard-working New Yorkers on their way home after a long day, will experience increasing service cuts, gridlock, air quality alerts, and inaccessible stations. Thanks to these two lawsuits being brought by Riders Alliance, Sierra Club, the City Club, New York City Environmental Justice Alliance, and our broader coalition, New Yorkers have a fighting chance at the world-class public transit, reduced traffic, and better air quality we all deserve.”

“Subway and bus riders won congestion pricing and we’re not giving up our victory just because Governor Hochul broke the law,” said Betsy Plum, Executive Director of the Riders Alliance. “After years of working closely with the governor and MTA to start the program, her betrayal of public transit left us no choice but to go to court. We’re filing today’s case because congestion pricing will be a win-win-win for all New Yorkers, with better transit, freer flowing traffic and the quality of the air we breathe.”

New York City’s congestion pricing plan was set to begin on June 30 and funnel an estimated $1 billion to the MTA annually — for projects like extending the Second Avenue Subway to West Harlem, installing elevators and accessibility improvements at stations that don’t have them, upgrading outdated signals, and keeping the system in a state of good repair.

The fallout from the decision by New York Gov. Kathy to put the New York City congestion pricing tolling program on pause became clear at the Metropolitan Transportation Authority’s Board meeting on June 26 with the price tag being $16.5 billion in deferred MTA capital projects.

While Gov. Hochul vowed to provide funding to adequately finance MTA projects, at press time no firm plans have been released. Therefore, unless the congestion pricing program, a hybrid or some other funding mechanisms are put in place, the region’s construction trades will see significant adverse impacts.

According to a presentation by executives of the MTA’s Capital Division, the pause in congestion pricing will result in a 30% impact on funding; $15 billion in direct funding, $500 million in Central Business District Tolling Program support and $2 billion in federal funding for the Second Avenue Subway project. After accounting for $1 billion in federal support for the Penn Access Project, the MTA will suffer a $16.5-billion shortfall in available funding.

In its presentation, the MTA noted that it has $12 billion remaining in capital funding and has committed $27 billion already. However, it stated that the MTA must reprioritize projects as its remaining funding available has been impacted by 60%.

The MTA going forward is prioritizing essential state of good repair work; select rolling stock purchases and leveraged federal funding opportunities.

Projects to be Deferred and Economic Impacts

Future Second Avenue Subway Phase 2 Projects
Impact: $5 Billion
$3 billion in local funding now needed for state-of-good-repair work. This makes $2 billion of federal funding unavailable.

Accessibility Projects
Impact: $2 Billion
A total of 23 station projects are being deferred. Potential cancellation of the Long Island Rail Road Hollis and Forest Hills projects.

Zero Emission Buses
Impact: $500 Million
More than 250 electric bus purchases
Deferral of bus depot charging infrastructure

Upgrades to Infrastructure & Technology
Impact: $1.5 Billion
Verrazano-Narrows Bridge ramp reconstruction and dehumidification
Public address upgrades at more than 70 stations

Rolling Stock
Impact: $1.5 Billion
Future generation of subway cars
New CNG buses
Passenger and work locomotives for railroads

Signal Modernization
Impact: $3 Billion
Fulton Line
Sixth Avenue Line and 63rd Street Tunnel

State of Good Repair
Impact: $3 Billion Funding Gap

Less Urgent Work to be Deferred:

Five subway station renewals.
Station component repairs.
Various structural repairs.