Eighteen days ago, New York Governor Kathy Hochul addressed an audience of world economic leaders in Ireland, promising to revolutionize transportation in New York City with the country’s first congestion-pricing system. This policy, she noted, had been stalled for six decades due to fears of backlash from drivers. But she boldly stated that if cities were serious about becoming more livable, they had to move past these concerns.
Hochul's plan involved charging most drivers $15 to enter Manhattan’s crowded core. However, on Wednesday, she abruptly reversed her position with a surprise announcement that the program, set to start on June 30, would be "indefinitely paused." She claimed the delay was necessary to avoid hindering Manhattan’s economic recovery from the pandemic.
This sudden change is a disappointing misstep. Hochul’s decision jeopardizes a crucial public policy that promised significant environmental and quality-of-life benefits for New York. It also risks leaving a massive gap in the Metropolitan Transportation Authority’s (M.T.A.) capital budget and undermines efforts to reduce car use in cities across the U.S. that looked to New York to set an example.
What truly changed after Hochul’s speech? The city’s financial health hadn’t suddenly worsened; in fact, Hochul herself had declared New York’s full economic recovery from the pandemic back in March. The real shift was political. Donald Trump criticized the congestion plan, and several Democrats in competitive House races around New York feared it would make them vulnerable to attacks. Reports indicate they pressured Hochul to halt the plan.
However, the congestion pricing scheme can still be saved. It requires a formal vote from the M.T.A. board to be stopped. Despite being appointed by the governor or her allies, the board members represent an independent agency and are not obliged to comply with her political whims. They have a fiduciary duty to the M.T.A., and canceling or delaying the congestion program would result in an immediate loss of $1 billion a year for the agency’s capital plan. This shortfall would jeopardize projects like a pollution-free electric bus fleet and extending the Second Avenue Subway to Harlem, potentially derailing efforts to modernize the subway system that supports the nation’s largest city.
Hochul’s lack of a serious alternative plan highlights the rashness of her decision. She initially suggested raising the payroll mobility tax on New York City businesses, which would burden their employees. This proposal was quickly rejected by state lawmakers who rightly pointed out the unfairness of making city workers bear this cost while suburban residents, who also rely on M.T.A. services, were spared.
In sum, Governor Hochul’s decision to pause the congestion pricing plan is a grievous miscalculation that endangers vital public policies and the future of New York City’s transportation infrastructure. There's still a chance to rectify this mistake, but it requires the M.T.A. board to prioritize the long-term benefits over short-term political pressures.
