Hochul Seems Set on Watered-Down Congestion Pricing

In June, Governor Kathy Hochul made the bombshell announcement that she had ordered the MTA to indefinitely pause New York City’s congestion-pricing program, just weeks before it was set to begin. The governor had once been a major proponent of the first-in-the-nation plan to charge fees to drivers traveling at or below 60th Street, but when she announced the pause, she cited concerns about the $15 toll being too much of a financial burden for everyday New Yorkers. This week, Hochul is indicating that a replacement plan could soon be on the horizon.

The New York Post reported on Sunday that Hochul is mulling significant changes to congestion pricing, including a lower toll and potentially adding new exemptions to the fee. A source told the outlet that the governor is considering excluding teachers, police officers, and firefighters who commute from paying the toll. In July, the New York Times reported that state lawmakers, who would have to sign off on a new plan, were pushing for Hochul to consider a lower toll.

And in an interview with Politico at the Democratic National Convention on Monday, the governor gave her first signal about a potential timeline for a new plan. “We will be announcing this by the end of the year because the Legislature has to act on it,” she said. “It’s more likely that it’ll be announced at the end of the year, early next year as we get the Legislature on board. But I’m working with our leaders right now.”

The governor made a point to say that the potential timeline for a replacement was unrelated to the November elections. Many have speculated that Hochul’s decision to pause congestion pricing was rooted in concerns that Democratic candidates would be tied to the unpopular program by their Republican opponents, a claim she has denied. “It’s not related to elections,” Hochul said. “We’re studying other options.”

As Hochul works to put together a viable replacement for the congestion-pricing program, she still has to contend with the legal challenges to her decision. The City Club of New York is suing the governor, the MTA, and others, claiming that Hochul’s move to pause the program violates the 2019 law that ordered its implementation. A second lawsuit, filed by Riders Alliance, the New York City Environmental Justice Alliance, and the Sierra Club, are challenging Hochul’s decision on the basis that it violates the state constitution that guarantees New Yorkers the right to clean air.

On Monday, amNewYork reported that Hochul has retained Boyd Johnson of the law firm WilmerHale to represent her in these matters. Johnson is currently one of the two lawyers representing Mayor Eric Adams as the federal government conducts an investigation into the finances of his 2021 campaign.