New York governor relaunches NYC congestion pricing plan

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New York Gov. Kathy Hochul announced Nov. 14 the revival of her embattled plan to implement congestion pricing in New York City.

Hochul first proposed the plan late in 2023. It was set to take effect at the end of June 2024, but after a lawsuit from the Trucking Association of New York (TANY), the plan was put on hold “indefinitely.”

In renewing the push for congestion pricing, Hochul did make some concessions to opponents of the tolls, reducing the cost of the tolls from the original proposal by 40%.

For large trucks, this means instead of the original proposal of a $36 toll to enter Manhattan below 60th Street, those drivers will now owe $21.60. Small trucks will now pay $14.40 instead of the $24 in the original proposal. The fee for passenger vehicles was reduced from $15 to $9. There will also be discounts of 75% for nighttime entries to the Central Business District between 9 p.m. and 5 a.m. on weekdays and 9 p.m. and 9 a.m. on weekends.

“As I said from the start, a $15 toll was just too high in this economic climate. That’s why our plan cuts the daytime toll to $9 for cars,” Hochul said. “By getting congestion pricing underway and fully supporting the [Metropolitan Transportation Authority (MTA)] capital plan, we’ll unclog our streets, reduce pollution and deliver better public transit for millions of New Yorkers.”

[Related: NYC congestion pricing program halted following trucking group's lawsuit]

In a social media post Nov. 14, TANY reiterated that it believes the congestion pricing plan is "unfairly targeting the trucking industry. Trucks will pay up to $21.60 per trip, driving up costs for everyone while offering no relief to an industry that moves 90% of goods in New York."

The group added that it "stands firm in its fight against these excessive fees, which will raise prices for New Yorkers already facing an affordability crisis. This plan is bad for business, bad for jobs, and bad for New York."

The new plan does, however, include an incremental increase back to the original pricing plan. The new reduction will be in effect from 2025 to 2027. From 2028 to 2030, MTA can choose to increase the tolls by 20% to $28.80 for trucks and $12 for cars. Beyond 2030, congestion pricing can return to the original plan of $36 for trucks and $15 for cars.

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Under the governor’s plan, which still has to be approved by the MTA Board, congestion pricing will be ready for implementation at midnight on Sunday, Jan. 5, 2025.

[Related: New York trucking group sues NYC over congestion truck tolls, guv halts program]

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