NEW YORK CITY, New York: With President-elect Donald Trump headed for the White House, New York's Democrat Governor Kathy Hochul is hurriedly restarting a tolling plan that she had earlier refused to implement to discourage people from driving into the most traffic-choked parts of Manhattan.
Last spring, aiming to avoid alienating suburban commuters during an election year, the governor halted America's first "congestion pricing" tolling system. At the time, Hochul argued that imposing a $15 toll on commuters and businesses was ill-timed.
Now, the Democratic governor is pushing to implement the plan ahead of President Trump's pledge to block it permanently during his first week in office.
Hochul's revised proposal, unveiled this week, introduces a $9 fee for most vehicles. The plan aims to generate funding for the city's struggling public transit system while reducing the financial burden on drivers. The new system is set to launch on January 5.
"I'm 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," Hochul said from her office in midtown.
The proposed fee would apply to most vehicles entering Manhattan neighborhoods south of 60th Street, collected via license plate readers. This charge would be in addition to the often-high tolls already imposed on drivers using certain bridges and tunnels to access the borough.
Last spring, Governor Hochul expressed concerns that implementing the tolls could slow New York City's recovery from the COVID-19 pandemic. However, she assured the public that the pause would not be permanent and committed to presenting a revised plan.
The new proposal, announced this week, has drawn praise from public transit and environmental advocates who were critical of Hochul's initial decision to delay the plan just weeks before its scheduled June launch.
Congestion pricing, which aims to reduce traffic and pollution while promoting public transit, has been successfully implemented in cities like London, Stockholm, Milan, and Singapore but has yet to be adopted in the U.S.
Despite its approval by state lawmakers in 2019, the program faced delays, including a required federal environmental review during Trump's first term. It eventually received the green light under President Biden's administration.
Now, with Republicans poised to regain control of the White House and Congress in January, the plan faces renewed political hurdles.
Former President Trump, whose Trump Tower residence falls within the congestion pricing zone, criticized the move, calling it "the most regressive tax known to womankind."
Republican Representative Sam Graves of Missouri, chair of the House Transportation and Infrastructure Committee, accused Hochul of reviving the plan for political gain and pledged to oversee the matter closely.
The revised $9 fee is expected to generate sufficient revenue to fund improvements for the Metropolitan Transportation Authority (MTA), although officials acknowledge it may take longer to repay the associated costs.
Hochul has stated she does not intend to raise the toll for at least three years, though adjustments remain an option.
The plan has drawn mixed reactions. While supporters hail it as a necessary step toward sustainable urban transit, suburban lawmakers, midtown residents, and workers have criticized its return, citing financial and logistical concerns.