New York City’s congestion pricing plan is back on track, with a plan for it to launch at midnight on Jan. 5 with a reduced base fare, Gov. Kathy Hochul announced Thursday.
The initiative, aimed at reducing traffic congestion and bolstering public transportation funding, had been slated for a June rollout, but Hochul abruptly paused it just weeks before its start. At the time, the governor said the originally proposed $15 fee for E-ZPass drivers was too steep for New Yorkers to bear.
“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. “This lower toll will save daily commuters nearly $1,500 annually, and that kind of money makes a big difference for our families.”
Under the new plan, the toll for passenger vehicles entering Manhattan south of 60th Street will be set at $9 for E-ZPass users, a 40% reduction from the original proposal. Drivers will be tolled once per day.
The toll structure will be in effect from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends. Overnight tolls for private vehicles will be reduced to $2.25.
It remains unclear what the price will be for vehicles that do not have E-ZPass.
Rates for commercial vehicles have also been adjusted. Tolls for small trucks and non-commuter buses will will drop from $24 to $14.40, while tolls for large trucks and sightseeing buses will drop from $36 to $21.60.
The toll for motorcycles with E-ZPass will be $4.50, down from $7.50 under the previous plan. Motorcycle drivers will also only be tolled once per day.
No new exemptions were introduced in the revised plan. However, the MTA’s previously announced exemptions for disabled New Yorkers will stay in place, as well as discounts for low-income residents, which includes a 50% discount after the first 10 trips in one calendar month.
According to the governor, credits at tunnel crossings are reduced by 40% from the original plan, to $3. Taxis, and Uber and Lyft cars, will be exempt from the tolls, but taxis will pass a 75-cent charge onto their passengers, and Uber and Lyft drivers will pass on a $1.50 charge - both a reduction of 40% from the original plan.
In a release, Hochul said the MTA would keep the daytime toll for vehicles with E-ZPass at $9 through 2027, and would not raise it beyond $12 from 2028 through 2030.
In conjunction with congestion pricing, the governor said she would direct the MTA to make “major service enhancements” along at least 23 bus routes in the outer boroughs, including at least 15 local routes and eight express routes.
The BM2, BM5, SIM1C, SIM4C, SIM23 and SIM24 routes are among the express routes that will be getting upgrades, she said in the release.
Hochul’s announcement came one day before a court deadline stemming from two lawsuits challenging the delay. The City Club of New York and a coalition including the Riders Alliance, the Sierra Club and the New York City Environmental Justice Alliance argued the pause violated both a statute mandating congestion pricing and state environmental law.
The plan still requires approval from the federal government. If greenlit, the MTA board is expected to vote on the proposal at its next meeting, triggering a 60-day public outreach period before implementation can begin.
In a statement provided to NY1 Thursday, a spokesperson for the Federal Highway Administration said the agency had been notified of Hochul’s revised plan, adding that it was working toward approving it.
By law, the congestion pricing policy must generate at least $1 billion in revenue annually. The MTA plans to issue bonds based on this revenue, aiming to raise $15 billion for critical capital projects, including subway upgrades and the extension of the Second Avenue Subway to East Harlem.
Opposition to the plan has already emerged, with some lawmakers vowing to block it at the federal level. Republican Rep. Mike Lawler on Tuesday cited the incoming Republican majority in Congress as a pathway to doing away with the plan entirely.
“We are going to advance legislation, we are going to move through the administration with the EPA, with President Trump, to stop this program dead in its tracks, period,” Lawler said.
President-elect Donald Trump has also pledged to dismantle the plan once he assumes office in January. In a social media post in May, Trump called congestion pricing a “disaster for NYC” and vowed to end it immediately upon taking office.
“I will TERMINATE Congestion Pricing in my FIRST WEEK back in Office!!!” Trump wrote.
In response to Thursday's announcement, Trump said in a statement that he "strongly disagreed" with Hochul's congestion pricing decision.
"Not only is this a massive tax to people coming in, it is extremely inconvenient from both driving and personal booking keeping standards," Trump's statement reads. "It will be virtually impossible for New York City to come back as long as the congestion tax is in effect."
New Jersey Gov. Phil Murphy, meanwhile, voiced opposition to the new plan in a statement released Thursday.
"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," Murphy said, in part. "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."
"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," he added. "Today’s plan woefully fails that test."