NYC congestion pricing will start in January at $9, Gov. Kathy Hochul says
NEW YORK -- Congestion pricing will start in New York City in January with a $9 toll, Gov. Kathy Hochul announced Thursday.
Hochul wants to restart the program at a reduced rate, which is why it's being lowered from $15 for most daytime trips into Manhattan's Congestion Relief Zone.
"State law requires that congestion pricing simultaneously raise money for the MTA and drive down traffic congestion. These are important priorities. But I believe that no New Yorker should have to pay a penny more than absolutely necessary to achieve these goals, and $15 was too much," Hochul said Thursday. "I am proud to announce we have found a path to fund the MTA, reduce congestion and keep millions of dollars in the pockets of our commuters."
Sources told CBS News New York's Marcia Kramer $9 was the lowest rate cited on the environmental impact report, so anything below that amount would require a new report.
"This lower toll will save daily commuters nearly $1,500 annually, and that kind of money makes a big difference for our families," Hochul said.
$9 fee will still add up to $15 billion for the MTA, Hochul says
The governor said car owners enrolled in the Low-Income Discount Plan who make less than $50,000 a year will be eligible for a 50% discount after their 10th toll of the month.
The $9 rate will also be lower during off-peak hours, to encourage overnight deliveries, Hochul said.
"Here's the most critical part: 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 fund the MTA, and drivers are paying $6 less," she said.
Hochul said that $15 billion will pay for a modern signal system to improve subway service, expand the Second Avenue Subway line, add electric buses, elevators and more for the MTA.
"Years and years of disinvestment and under-investment in the MTA by previous administrations ends today," she said.
The plan still has to pass a few hurdles, including an MTA vote on the new pricing structure during a board meeting next week. It also has to go through a federal review, and the scanners need to be tested before a start date is set, but the governor hopes it can go into effect on Jan. 5.
"Congestion pricing is fundamentally about meeting three critical objectives: Ensuring our commuters can rely on safe subways and commuter trains now and into the future, ensuring we can decongest our clogged streets, improving the quality of life for residents, the safety of pedestrians and access for emergency vehicles, and ensuring we reduce vehicle emissions to enhance our air quality," Hochul said.
"New Yorkers will look back on this moment with pride, a moment where we chose to do hard things that make our city a better place, not just for us, but for our children and for our grandchildren. When we banned smoking in restaurants long ago, 20 years ago and in bars, people certainly thought it was the end of New York City night life," said New York City Deputy Mayor Meera Joshi. "Fast forward today. Our restaurants are thriving, our air is cleaner, and we saved tens of thousands of lives from lung cancer. More importantly, we created a healthier new normal for this generation."
Murphy, others push back
New Jersey Gov. Phil Murphy joined a chorus of voices denouncing the plan's return, as the Garden State continues to battle the plan in court.
"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," Murphy said in a statement. "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."
In the heart of the Central Business District, some frustrated drivers said their minds are unchanged.
"It's not fair to the people in the outer boroughs or in New Jersey," one said. "[Hochul] is gonna try and rush it through because of [Trump's election], but it's not fair."
Just like the plan's pause, drivers said the timing of the re-implementation is all about politics. While the governor framed the reduced cost as a "decrease," her critics see it more as an increase from zero.
"I have to drive the kids to school every day and it's a real hardship," one woman said.
One New Jersey driver said he's not looking forward to the start of the tolls.
"No, not in addition to the tunnels and the tolls we pay right now," he said.
A taxi driver added, "I don't think so. No matter what, everybody comes."
Transport Workers Union President John Samuelsen was a member of the MTA board that shaped congestion pricing in its original form. He was insistent at the time that the transit agency use the money from the tolls for new subways and buses in the outer boroughs. Eventually, he resigned.
"It was kind of botched. It was botched," Samuelsen said. "Outer-borough New Yorkers, particularly on the fringes of the outer boroughs, are adamantly against this. There's no doubt that this was impactful in the election."
Samuelsen, however, did say the new plan announced Thursday is a drastic improvement, with the governor calling on the MTA to invest in service improvements for people who may now be priced out of driving.
"The price has gone down. Service investment is going to happen. It just makes it a better deal for outer-borough New Yorkers," Samuelsen said.
Many New Yorkers are celebrating the relaunch as a victory
"I think it's great. I realize it inconveniences a few people. I'm sure certain small businesses will feel some pain from it, but I think I applaud the decision overall," one man said.
Advocates with Transportation Alternatives said the program will not only ease congestion but make streets safer for pedestrians and cyclists.
"Reduce traffic by as much as 17% coming into the Central Business District. So that is 17% more space that the city can then use to build the bus lanes and bike lanes and all sorts of ways to get people where they need to go faster and with less gridlock," communication manager Jacob DeCastro said.
The MTA says funds from congestion pricing will improve subway and bus services, install more elevators and escalators, and improve train frequency and reduce delays.
"I think the MTA is in desperate need of help. We can't keep have it operating the way it is," Sean Duckworth said.
"I think that when people see more elevators being installed in subway stations, newer signals that allow the trains to run more frequently ... They'll get it, that it's worth the cost," said Patrick McClellan, policy director for the New York League of Conservation.
However, some supporters still have concerns about exactly how the funds will be used. They want a guarantee they'll see improvements.
"We need to be 100% clear that it's going back into improving the quality of the MTA system. Being that it is a monopoly, we don't have other transportation services, improving the train times, bus times, especially on weekends," one man said.
Despite some reservations, many remain hopeful congestion pricing will lead to a cleaner, healthier New York City.
What happened to NYC congestion pricing?
In a shocking move, the governor paused the program just weeks before it was previously set to start in June. She told New Yorkers the $15 toll was too expensive in the face of inflation and would negatively impact the city's economic recovery.
"At a time when inflation is still cutting into New Yorkers hard-earned wages, the concern is that many people would do exactly that. Or that one more added cost would make residents rethink living or working here altogether, hurting our recovery even more," Hochul said in a video message on June 5.
The pause sent the MTA scrambling to fund its capital plan. At the time, House Minority Leader Hakeem Jefferies reportedly raised concerns the unpopular plan would make it more difficult for Democrats to win back control of Congress. Hochul promised to find other ways to raise money for the cash-strapped agency, including a possible tax on businesses.
In the wake of Donald Trump winning the 2024 presidential election and Republicans securing control of Capitol Hill, the governor discussed resurrecting the toll, at a cheaper rate, but Hochul insists the sudden push has nothing to do with the election results.
"These conversations are not new. We have been in communication with the White House, the Federal Highway Administration, the Biden Chief of Staff secretary, Buttigieg, since June to talk about my belief that when inflation was escalating and New Yorkers were struggling, that $15 was just too much," Hochul said earlier this week.
Trump has vowed to kill the program once he takes office, and New York Rep. Mike Lawler said he plans to introduce a bill that would deny federal funding for the MTA if the program becomes a reality. Meanwhile, several lawsuits have been filed for and against the plan.
"It will put New York City at a disadvantage over competing cities and states, and businesses will flee," Trump said in a statement. "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."
"People who have to drive for whatever reason ... will spend less time wasted in traffic. I think Donald Trump may understand those issues as a New Yorker," MTA CEO Janno Lieber said.
New Jersey Rep. Josh Gottheimer, a Democrat, said he will be joining New York Republicans like Lawler and Rep. Nicole Malliotakis in trying to kill the plan.
"I'll be damned if I'm going to sit around and let the MTA balance their mismanaged out-of-control budget on the backs of hard-working Jersey families," Gottheimer said.
How congestion pricing works in Manhattan
The MTA says congestion pricing will reduce traffic and improve air quality in Manhattan, while raising much needed money for mass transit improvements.
Under Hochul's updated plan, most drivers would be charged $9 to enter Manhattan's Congestion Relief Zone during peak hours. MTA officials previously said motorcycles would be charged less, but trucks and buses would have to pay more.
While most vehicles would only be charged once a day, taxis and rideshares would be charged per trip, the MTA said in the initial plan.
The Congestion Relief Zone starts at 60th Street and heads south to include the Lincoln, Holland and Hugh L. Carey tunnels on the Hudson River side, and the Queensboro Bridge, Queens Midtown Tunnel, Williamsburg Bridge, Manhattan Bridge and Brooklyn Bridge on the East Side.
Exemptions have been made for certain emergency and government vehicles, school and commuter buses, as well as low-income drivers and those who have medical conditions that prevent them from using mass transit. Learn more about the exemptions here.
Drivers will be able to use their E-ZPass or pay by mail, which is about 50% more expensive -- so a $9 toll would cost $13.50, the MTA previously said. E-ZPass drivers can also get a $5 credit when they take the Holland, Hugh L. Carey, Lincoln or Queens-Midtown tunnels into Manhattan during peak hours. Sign up for E-ZPass here.
Congestion pricing's impact in London
London has had congestion pricing for the past two decades. In its first year of the charge, congestion there dropped 30%, but traffic returned and by 2022, London was ranked the most congested city in the world.
"It's not had the lasting effect on ... increasing traffic speeds and improving the predictability of journeys," Professor Tony Travers, of the London School of Economics, told CBS News New York's Ali Bauman in June.
It has put $3 billion into London's public transit, and the city attributes its slowed traffic speeds to added bus and bike lanes.
"It's about overall vehicle numbers going down, but that space being repurposed for other uses," Alina Tuerk, with Transport for London, said in June.