New York to launch congestion pricing with lower toll for driving in Manhattan
The plan will launch in January with tolls of $9 -- down from the original $15 fare
NEW YORK CITY (WABC) -- Governor Kathy Hochul unveiled the path to unpausing congestion pricing in New York City at a press conference on Thursday afternoon.
The plan will launch with a reduced base fare of $9 -- down from the original plan of $15 -- and the state is "looking at Jan. 5" as the start date.
Congestion pricing was designed to raise money for the MTA's capital plan, while reducing congestion, by tolling drivers in Manhattan south of 60th Street.
"A $9 toll achieves our goals without putting an extra strain on those who can least afford it." Hochul said.
She added that additional discounts are being introduced for low-income drivers making less than $50,000 annually, who will receive a 50% discount after their tenth toll each month, saying "No New Yorker should have to pay a penny more than necessary."
The MTA said the revenue from congestion pricing would enable improvements in subway service and safety.
"You have stepped up for transit," MTA Chair and CEO Janno Lieber told Hochul during a news conference.
Lieber also said the program will help basic services by reducing vehicular traffic so ambulances can get to hospitals and police and respond to emergencies.
The revised plan is projected to still deliver the $15 billion necessary for modernizing the MTA. This includes long-awaited improvements like the Second Avenue Subway extension, new electric buses, and environmental enhancements aimed at lowering emissions in areas like the Bronx.
The governor's announcement comes a day before the start of a court case from those in support of congestion pricing, challenging the pause.
Gov. Phil Murphy has said he doesn't understand why Hochul is unpausing the plan when families are still hurting financially. New Jersey has an ongoing lawsuit against congestion pricing in federal court in Newark, one of at least nine still pending.
One man who has fought against congestion pricing is New Jersey Congressman Josh Gottheimer, who is back on the offensive saying the MTA is trying to deal with its own mismanagement by hurting New Jersey and outer-borough drivers.
"We stopped the congestion tax once, and let me be clear we'll stop it again. Game on," Gottheimer said.
Those who drive into the city are livid.
"I think it's too much because I already don't get enough money," one commuter said.
"It's not fair for the passengers or for the drivers, we already pay enough and the drivers as well ," another commuter said.
The new congestion pricing fees under the revised pricing plan that is under discussion include:
- A $2.25 off-peak rate for passenger cars from 9 p.m. to 5 a.m. on weekdays, and from 9 p.m. to 9 a.m. on weekends, which is down from $3.75 in the original plan.
- A $3 "crossing credit' for passenger cars entering the congestion zone through four Manhattan tunnels, which is down from the original $5 price.
- Small trucks and charter buses cost $14.40, originally $24, and large trucks and tour buses cost $21.60, originally $36.
- An extra per-ride surcharge is now 75 cents for taxis and black car services, originally $1.25, and $1.50 for Uber and Lyfts, originally $2.50.
The governor could not set the base toll lower than $9 without triggering a new federal environmental review that could allow the incoming Trump administration to block it.
President-elect Donald Trump has openly and vehemently opposed congestion pricing, saying last May he would terminate the governor's plan in his first week of office. But it would become much more complicated for Trump to do that if the governor starts her plan before he is inaugurated in January.
Instead, the $9 toll could increase in the coming years under this plan, which is what the Riders Alliance -- which has been fighting for the toll to raise billions for mass transit -- is hoping for.
However, Director of State Operations Kathryn Garcia said they will not increase the congestion toll for at least three years.
State Budget Director Blake Washington acknowledged the state will regularly review the tolling amount to make sure enough revenue is being generated. The toll wont increase unless "it's absolutely necessary," he said.
Lieber said Trump owns office buildings and "90% of the people who work in his office buildings come via transit. He's a New Yorker. I think that there's a real possibility, if he takes a hard look at the issue, he will as a New Yorker, he will understand."
The president-elect released the following statement:
"I have great respect for the Governor of New York, Kathy Hochul, and look forward to working with her to Make New York and America Great Again. But I strongly disagree with the decision on the congestion tax. It has never worked, but especially so with a city, town, or village that is trying to come back from very rough times, which can certainly be said of New York City. It will put New York City at a disadvantage over competing cities and states, and businesses will flee. Not only is this a massive tax to people coming in, it is extremely inconvenient from both driving and personal booking keeping standards. It will be virtually impossible for New York City to come back as long as the congestion tax is in effect. It will hurt workers, families, and businesses, but in particular, anything to do with jobs. It is the most regressive tax known to womankind (man!)."
The MTA board would have to approve the new rate at a meeting expected on Nov 18.
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