As New York Governor Kathy Hochul’s latest congestion pricing plan awaits federal approval, opposition—including from President-elect Donald Trump—threatens to overturn the initiative.
The adjusted US$9 toll, a reduction from the original $15 plan approved in 2023, aims to cut traffic and generate up to $15 billion for the Metropolitan Transportation Authority (MTA), which faces mounting financial pressures, reports Bloomberg News.
Five months ago, Hochul abruptly paused the congestion fee—imposed on drivers entering Manhattan during peak hours—over concerns that the measure would hurt working class New Yorkers.
Critics also speculated that political considerations, including the November election, played a role in the pause, writes the New York Times.
The new toll is expected to bring in roughly $1 billion each year to help the MTA pursue essential refurbishing, and to strengthen its case for further financing.
Concerns remain that the $9 toll will not be enough to force New Yorkers out of their cars and on to public transit in sufficient numbers to meaningfully cut air pollution. The original $15 scheme had been projected to cut peak traffic into Manhattan by 17%, Bloomberg writes.
The Federal Highway Administration must sign off on the program, along with the state and city transportation departments, writes the Times. While the hour grows late ahead of toll-averse Donald Trump’s inauguration on January 20, hopes are high that approval will be swift.
“State officials believe that they will not need to repeat the lengthy environmental review process because the previous review accounted for a range of tolls from $9 to $23,” writes the Times.
The necessary cameras and software are already installed, so the program can be up and running as soon as the feds give it the go-ahead.
Opponents of congestion pricing in New York say the reduced price has done nothing to quell their concerns. New Jersey Governor Phil Murphy is among those continuing to protest the toll on grounds that an environmental review of the project was deficient, reports Bloomberg.
Trump also continues his vocal opposition, describing the toll as a knockout punch for “anything to do with jobs” in the city.
Trump is committed to ending congestion pricing and slashing federal transit funding, Betsy Plum, executive director of a New York City transit advocacy group, told Bloomberg. “The sooner we turn on the program, the more protected and insulated it is from even the most hostile of federal governments.”
Such protection may not be absolute, warns NYC comptroller and congestion pricing proponent Brad Lander, as the federal government could “theoretically” sue New York State on grounds that it imposed the toll “improperly.”