New York Governor Contemplates Reviving $15 Congestion Pricing Toll

TL/DR –

New York Governor Kathy Hochul is considering reviving a proposal to charge a $15 toll on vehicles entering the busiest parts of the city, known as “congestion pricing”, before Donald Trump takes office as president. The governor halted the plan just before its launch in the summer, citing costs to motorists, but also for political reasons. The proposal is now being reconsidered with a lower price tag of $9, with the potential of a new internet sales tax or payroll tax to make up for the revenue loss.

New York’s $15 Toll Revival: A Move for Congestion Pricing Pre-Trump’s Office

A $15 toll for vehicles in New York City’s busiest regions may return as the Democratic state governor plans the activation of the initiative before President-elect Donald Trump assumes office, possibly blocking the move.

Gov. Kathy Hochul, since Trump’s triumph, has gathered state lawmakers’ support for reviving the “congestion pricing” scheme at a lower cost, according to sources that spoke to The Associated Press confidentially.

The plan to alleviate traffic congestion and support the transit system was paused by Hochul this summer before its commencement. She expressed concerns about the financial burden on drivers.

The proposed pricing scheme was seen as a political strategy to aid Democrats in the city’s suburbs. Despite this, Trump won, promising to end congestion pricing upon assuming office.

Despite no clear alternatives, Hochul maintained the congestion pricing scheme’s revival to aid New York City’s struggling public transit system. Recently, she proposed reducing the toll to $9 for most cars entering Manhattan below the 60th Street.

However, a lingering question is whether lower tolls would demand a federal government environmental review, possibly stalling the process into Trump’s term. The program, approved by state lawmakers in 2019, has been delayed due to this review.

The U.S. Department of Transportation hasn’t responded to a comment request.

Democrat Laura Gillen, a recent House seat winner just outside the city, expressed disappointment over the congestion pricing revival, calling for a complete termination of the plan.

Andrew Albert, an MTA board member, supports the fee’s return but doubts whether $9 would suffice to achieve policy goals.