NYC Congestion Pricing Is On Hold. What It Means For You

Congestion pricing in NYC has been paused indefinitely by NY Gov. Kathy Hochul. The recorded announcement was released 25 days before the new toll was set to take effect. The governor cited the potential adverse economic impact on commuters, NYC residents and businesses that are still recovering from the Covid lockdowns. 

“Let’s be real: a $15 charge may not mean a lot to someone who has the means, but it can break the budget of a working- or middle-class household. It puts the squeeze on the very people who make this City go: the teachers, first responders, small business workers, bodega owners. And given these financial pressures, I cannot add another burden to working- and middle-class New Yorkers – or create another obstacle to continued recovery” said Gov. Hochul in her statement, pausing the new toll. 

The Metropolitan Transit Authority (MTA) had overwhelmingly approved the proposed congestion pricing plan by a 12-1 vote. Motorists entering what the MTA calls the Congestion Relief Zone (streets and avenues at or below 60th Street in Manhattan) would have had to pay a toll beginning on June 30.

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What next?

The MTA is still facing legal opposition to the plan. The most recent lawsuit was filed in the Southern District of New York on May 30 by the Trucking Association of New York. The suit argues that the congestion pricing policy unfairly targets trucking and logistics companies, which are charged far higher rates than passenger vehicles.

The 110 gantries needed to detect motorists entering the zone and assess tolls have been erected. The MTA signed a contract with a Nashville-based company to install equipment related to the plan across Manhattan at a cost of more than $500 million, according to the New York Times. No information about what will happen to the equipment or the contract signed by the authority has been released.

Gov. Hochul will need MTA approval to halt the implementation of the congestion pricing plan, reported the Times. There is no plan for that vote to take place yet. However, the next regularly scheduled MTA board meeting is June 24. 

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