Gov. Kathy Hochul's revised congestion pricing plan would lower main toll to $9

Gov. Kathy Hochul on Thursday relaunched New York’s first-in-the-nation "congestion pricing" plan, modifying it by calling for a lower $9 toll on most vehicles driving into busy parts of Manhattan and aiming to enact the program before President-elect Donald Trump could ax it.

The toll would begin Jan. 5, Hochul announced.

Hochul, a Democrat, had put the plan on "pause" in June just before the originally proposed toll of $15 was set to take effect. The governor said the fee was too high for average New Yorkers, but many said the hold was more about taking the issue off the table for Democrats in an election year.

The $9 rate will stay in place for at least three years before the state seeks to phase-in a higher rate, Hochul officials said. The $9 toll is the lowest the MTA could enact under the environmental study approved by the federal government.

A key question is whether Hochul can get the Biden administration to quickly approve the plan prior to President Joe Biden leaving office Jan. 20. Another is whether Trump would have the power to kill the toll later as he has vowed. 

Backers say congestion pricing would encourage the use of mass transit, ease gridlock and pollution, and provide billions of dollars in funding to help the Metropolitan Transportation Authority upgrade subways, commuter rails and buses. Critics have said New York should not make life more expensive for residents and commuters.

"This is a 40 percent reduction," Hochul said, in touting the lower price, saying it could save average drivers $1,500 annually. She also said there will be discounts for those who earn less than $50,000 annually and for entering the toll zone after 9 p.m. to encourage nighttime deliveries.

"We’re going to reduce traffic, improve air quality and fully fund the MTA — all while keeping costs low for drivers," Hochul said.

Although MTA officials previously raised concerns about the ability to raise the targeted $1 billion in revenue with a reduced toll, MTA Chairman and CEO Janno Lieber said transit officials will be “watching conditions very closely.”

The MTA aims to use the toll revenue to finance $15 billion in infrastructure improvements.

“Now we have a (revenue) source, so we can move forward," Lieber said during a question-and-answer session with reporters. For example, he said the MTA would "promptly" begin the process of accepting proposals for tunnel work for the 2nd Avenue subway project.

Hochul also said that because of the plan, the state will soon begin "major service enhancements" at more than 20 bus routes in the outer boroughs.

The toll would be imposed on vehicles driving south of 60th Street in Manhattan and would be in addition to bridge and tunnel tolls. Discounts of up to 75% could apply after 9 p.m. Trucks would pay between $14.40 and $21.60. Taxis would see a 75-cent surcharge; $1.50 for for-hire rides such as Lyft.

Exemptions would be available for people who earn less than $50,000 annually after a certain number of trips into the toll zone.

Officials estimated the toll eventually would produce a 13% reduction in traffic congestion, though that is lower than the 17% they had projected under a $15 toll.

Congestion pricing has not fared well in public opinion polls. Politically, Hochul has faced critics on both ends of the argument: Those who outright oppose any toll and advocates who have said a $15 toll was needed to meet the MTA's needs and encourage drivers to switch to mass transit.

Hochul sought to deflect questions about how a compromised rate might impact her re-election chances, saying: "Right now, I'm governing and I think there's a big distinction. I'm proud to be governor and make the tough decisions."

Kathryn Garcia, Hochul's director of state operations, told reporters New York has sent paperwork for approval and the Biden administration has said it will complete it as soon as possible.

A Federal Highway Administration spokesman essentially confirmed this, saying in a statement: "New York project sponsors notified FHWA of their updated plan to advance the project with a starting toll of $9, and FHWA is working expeditiously to finalize the needed steps to complete the agreement."

Trump on Thursday afternoon issued a statement to Newsday and other outlets, saying he opposes the toll but he stopped short of saying he'd seek to kill it.

"I have great respect for (Hochul) ... but I strongly disagree with the decision on the congestion tax," Trump said. He said it would hurt workers and businesses.

Earlier this week, a group of Republican congressional members from the New York suburbs wrote to Trump, calling the toll plan "oppressive" and asking him to terminate it upon taking office.

"We request your commitment to ending this absurd congestion pricing cash grab once and for all," the Republicans -- including Reps. Andrew Garbarino (R-Bayport) and Nick LaLota (R-Amityville) -- wrote.

Some Democrats oppose it, too. Rep.-elect Laura Gillen of Hempstead urged "Albany to find another way to fund the MTA than by harming overtaxed commuters."

Meanwhile, transportation and environmental advocates hailed the announcement, even at a reduced toll.

"Congestion pricing cannot happen soon enough. Once the first tolls are collected, we will finally breathe easier," Danny Pearlstein, communications director of the Riders Alliance, said.

Even some influential large business groups -- the Partnership for NYC, the Association for a Better New York -- endorsed the plan.

"Excess congestion costs our metropolitan region more than $20 billion a year as movement of goods and people is slowed by traffic," said Kathryn Wilde, CEO of the Partnership for NYC. "The governor’s decision to allow congestion pricing to proceed, even with a reduced toll, will benefit business and consumers across the region" and help finance a "better, safer, and more reliable transit system."

Beyond the federal approvals, congestion pricing also is being fought in court -- by opponents and critics.

The state of New Jersey and a truckers' association have lawsuits to block it; supporters sued Hochul after she had placed the program on "pause." The Hochul administration was supposed to submit paperwork in the advocates' lawsuits by Friday, which might have influenced the timing of Thursday's announcement.

With Laura Figueroa