NYC Nixes Congestion Pricing Plan

Aerial view of the New York City skyline near Midtown

General Business

On Jun 5, 2024

New York Gov. Kathy Hochul has directed the MTA to indefinitely pause the city’s long awaited congestion pricing scheme, citing cost of living and economic concerns, ahead of its planned June 30 implementation.

“After careful consideration, I have come to the difficult decision that implementing the planned congestion pricing system risked too many unattended consequences for New Yorkers at this time,” she said. “For that reason, I have directed the MTA to indefinitely pause the program.”

The plan would have turned all of Manhattan south of Central Park into a “toll zone” beginning June 30. Most drivers in private cars would have had to pay a congestion fee of at least $15, or $22.50 if they weren’t enrolled in a regional toll collection program, in order to enter the zone.

Trucks would have been subject to a charge of $24 or $36 per trip, depending on their size.

The stated goal of the congestion pricing plan was to reduce traffic jams, reduce air pollution and provide an annual cash infusion of around $1 billion for the city’s subway and bus systems.

Last summer, Gov. Phil Murphy sued the federal government in US District Court for giving New York the green light to move ahead with the congestion pricing plan, stating that the Federal Highway Administration “failed to adequately consider the environmental impacts” and “ignored the significant financial burden being placed on New Jerseyans and New Jersey’s transportation system.”

“I want to thank Governor Hochul for pausing the implementation of congestion pricing in Manhattan’s Central Business District,” said Gov. Phil Murphy. “Although we have had a difference of opinion with our colleagues in New York on congestion pricing implementation, we have always had a shared vision for growing our regional economy, investing in infrastructure, protecting our environment, and creating good-paying jobs on both sides of the Hudson River. We fully embrace the notion that the success of Manhattan is inextricably linked to the prosperity of the entire Tri-State Area.

“Governor Hochul and Mayor Adams have been strong, collaborative governing partners and I look forward to continuing to work closely with them for the benefit of all of our residents.”

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