NYC agency decides to postpone vote on $15 Manhattan congestion pricing

The decision by New York transit agency to indefinitely halt congestion pricing in Manhattan, scheduled to begin on June 30, was made following direction from the state’s governor, Governor Kathy Hochul. Governor Hochul cited high inflation and concern for commuters and tourists choosing not to visit due to the additional charge as reasons for postponement.

The Metropolitan Transportation Authority (MTA) voted to suspend the congestion pricing program and is now faced with considering significant cuts to capital projects. State Comptroller Thomas DiNapoli’s report highlighted the need to remove an estimated $17 billion from the current $55.4 billion transit capital plan to make up for the loss of revenue from congestion pricing.

MTA board members were informed that the postponement would result in deferring $16.5 billion worth of capital projects, including crucial initiatives like extending the Second Avenue Subway, upgrading signal systems, and improving train cars. The agency has already canceled contracts and halted work on important expansion projects, putting federal grant funding at risk.

New York City’s congesting pricing program, intended to reduce traffic by 17% and improve air quality while increasing mass transit use, was projected to generate $1 billion to $1.5 billion annually. The toll of $15 during daytime hours for vehicles driving in Manhattan south of 60th Street aimed to support $15 billion in debt financing for mass transit improvements. London established a similar congestion charge in 2003.

The plan to implement congestion pricing was approved by state lawmakers in 2019 to address New York City’s status as the most congested city in the U.S. despite initial projections for a 2021 start, the federal government, under President Donald Trump, did not take any action.

With over 900,000 vehicles entering the Manhattan Central Business District daily, causing average travel speeds to drop to a mere 7 miles per hour, congestion pricing remains a vital strategy for managing traffic and improving transportation in New York City.