New York Governor Hochul’s decision to suspend the congestion charge is absurd – People’s Policy Project

Last Wednesday, Governor Kathy Hochul ordered the Metropolitan Transportation Authority (MTA) to suspend New York City’s congestion toll program indefinitely. The plan, which was to take effect on June 30,^thwould have charged drivers a toll when they entered Lower Manhattan (south of the 61)^st Street). The fee would have varied depending on the type of vehicle, with passenger vehicles paying $15 per entry (maximum of one fee per day). While those who drive into Lower Manhattan daily may celebrate Governor Hochul’s decision, her decision to suspend the program is absolutely ridiculous.

Before her about-face, Governor Hochul touted the plan as a solution to two major problems: traffic within New York City and a lack of capital for the MTA. New York City, believe it or not, has some of the worst traffic congestion in the United States and is regularly cited as the most congested area in North America. In addition, the MTA, despite being one of the best transit systems in the United States, is critically underfunded and regularly suffers from budget crises.

The idea behind New York City’s congestion toll program was to encourage commuters to use other modes of transportation to enter Lower Manhattan. Those who continue to drive would be required to pay a fee, and the revenue from the program would go to the MTA to make investments. This approach would likely have encouraged some commuters to use other transportation options, as a preliminary report estimated that the number of cars entering Lower Manhattan would drop by 17%, equivalent to 153,000 fewer cars. This would reduce traffic and carbon emissions while providing safer streets and cleaner air in the congestion zone. In addition, the revenue from the congestion toll would have been substantial, as the program was expected to generate $1 billion per year for the MTA, allowing it to invest over $15 billion in capital expenditures over time. These investments would improve service and provide residents with more affordable transportation options. The decision to suspend the congestion charge indefinitely is inexcusable considering what has already been invested in the program and who exactly would have benefited from it.

First, the MTA has a $507 million contract with Transcore, a private company tasked with building and managing the congestion pricing program. Cameras and toll scanners were installed in advance of the program’s implementation. If congestion pricing never goes ahead in Lower Manhattan, that money would have been completely wasted. Moreover, the MTA’s planned capital improvements would have primarily benefited low-income and disabled New Yorkers.

Given the high cost of purchasing and maintaining a car, especially in NYC, many low-income residents see the MTA as their best option because of the system’s enormous size and low cost. The MTA planned to use the revenue from the congestion pricing program for several projects, including extending service to East Harlem, modernizing signaling to reduce delays, and replacing aging infrastructure such as train cars and escalators. Improving MTA service benefits all transit users, but helps low-income NYC residents the most, as they often rely solely on public transportation. In addition, the MTA continues to make efforts to provide better accessibility for disabled commuters. The MTA also planned to use the funds from the congestion pricing to add more ramps and elevators to stations so that wheelchair users can access more MTA subway stations.

Map of planned MTA projects using congestion pricing funds

Not only would low-income and disabled commuters have benefited from the MTA’s improvements, they would have been largely protected by the implementation of congestion charges. Only 2% of commuters from the outer boroughs who live in poverty drive to work in Lower Manhattan, and those 5,000 drivers would have been eligible for a discount. Moreover, disabled drivers would have been completely exempt from any charges. In effect, New York’s congestion charge program would have charged the many higher-income commuters who drive to work in Lower Manhattan, making the program very progressive.

It’s clear that New York’s congestion toll program would have reduced traffic, improved the MTA’s service, and benefited the most vulnerable New Yorkers. Instead of allowing that to happen, Governor Hochul decided to suspend a program that the MTA had already invested half a billion dollars in, 25 days before it was to be implemented. Without congestion tolls, NYC will likely remain the busiest city in the United States, wasting commuters’ time and hurting their productivity.

Governor Hochul tried to convince the state legislature to close the MTA’s $1 billion gap through general funds or a business tax, which would be even more regressive and affect far more people than the congestion charge. However, the state legislature ended its session without approving a plan to fund the public transit system. MTA officials have already stated that projects that depend on congestion charge funds “will likely have to be scaled back in order to protect and preserve the basic operations and functionality of this 100+ year old system.” This means that hundreds of much-needed MTA capital improvements will either be postponed or canceled.

Governor Hochul’s decision to suspend the congestion charge is completely untenable. Her reasoning likely goes beyond the claims she made in her press conference, as there has been intense pressure from wealthy constituents and she has received large donations from lobby groups that strongly oppose the program. Nevertheless, Governor Hochul’s decision is not only a betrayal of her stated goals of revitalizing New York City, but it also deprives her constituents of a more efficient and accessible public transit system, all under the guise of exempting high-income earners who commute to Lower Manhattan by car from a relatively small fee. Fortunately, state lawmakers have publicly stated that they will sue Governor Hochul’s decision after the bill that created the congestion charge program is passed and signed into law. If these lawsuits are successful, the congestion charge would be reinstated. The congestion charge would not only benefit America’s largest city, but would also serve as an example to other US metropolises of how to effectively reduce traffic and adequately finance public transport systems.