According to two people familiar with the discussions, Gov. Kathy Hochul is quietly moving to delay a plan to charge drivers entering Manhattan’s central business district, just weeks before the plan is expected to take effect. effective.
The first in the country congestion charging schemehas been decades in the making, is expected to begin June 30. Drivers using E-ZPass will have to pay up to $15 to enter Manhattan south of 60th Street.
But even though Ms. Hochul believes that congestion charging is good environmental policy, she is concerned that the timing is less than ideal, according to a person familiar with her thinking. The governor fears that could deter commuters from returning to the central business district, which has yet to fully recover from the pandemic.
Ms. Hochul’s gamble, if successful, could also help her fellow Democrats in the House, who may face angry voters in an election year. But it would be a blow to the advocates and organizers who have worked for more than a decade to bring this change to New York City.
It is unclear whether Ms. Hochul’s still-emerging plan to delay the congestion charge and replace it with another revenue source will receive the necessary approval from the New York State Legislature, which The agency approved this plan many years ago.
The tolling plan is designed to reduce traffic congestion in Manhattan and generate $1 billion a year in revenue for the Metropolitan Transportation Authority, which operates the subway, bus and two-way systems. railway for passengers in the area. That revenue, in turn, would fund the system’s massive capital construction needs.
To fill the $1 billion annual gap, Ms. Hochul is considering a proposal to levy a tax on New York City businesses. Such a tax would require approval from the Legislature, which is not guaranteed, especially with just two days left in the legislative session.
If congestion charging goes into effect, drivers from New York City, Connecticut, New Jersey and surrounding counties will bear the brunt of the burden. Business taxes would fall largely on New York City. But shifting the tax burden from drivers to businesses could also bring some populist appeal ahead of the general election.
The plan to charge drivers to enter Manhattan’s central business district has sparked fierce opposition from unions, drivers, Gov. Phil Murphy of New Jersey, former President Donald J. Trump and residents. suburbs of New York City during an election year when several upstate congressional seats were up for grabs. share.
Other major cities around the world, including Stockholm, London and Singapore, have for years charged fees to enter central business districts, and transportation experts have long harbored hopes that the City would New York will join their ranks.
Former Mayor Michael R. Bloomberg gave a serious bid to convince Albany lawmakers to pass a congestion pricing plan for New York City, which ultimately failed. Only after the transit system’s so-called “summer of hell” in 2017 did the plan gain traction, with then-metro chief Andy Byford backing the effort hey, and then the Governor. Andrew M. Cuomo belatedly embraced the idea.
In the years that followed, the pandemic devastated Manhattan’s central business district and Mr. Cuomo began publicly questioning the wisdom of congestion charging. Mayor Eric Adams offered only modest support for the plan.
“Limiting congestion charging would be a massive betrayal of millions of people,” said Danny Pearlstein, director of policy and communications for Riders Alliance, which has spent years pushing for congestion charging. Use public transport. “It also means learning from people like Phil Murphy, Andrew Cuomo and Donald Trump.”
