Hochul indefinitely halts congestion pricing $15 after Backlash Across the Board

By: Mario Mancini

Updated:

New York Gov. Kathy Hochul announced Wednesday that she would stop the planned June 30 rollout of a congestion pricing program, reportedly due to concerns about backlash at the voting booth, Fox News reports

“My commitment to a greener, more sustainable future is unwavering,” Hochul said at a press conference Wednesday, announcing that she directed the Metropolitan Transportation Authority (MTA) to “indefinitely pause” the congestion pricing program. “I have been more committed to combatting climate change and protecting our environment than any governor in our history.”

“We will continue to find strategies to address congestion, and we will continue to find solutions that benefit both our planet and our people,” Hochul said. “This decision is about doing what’s right for the people who make our city thrive. It’s about standing up for the hardworking men and women who get up every single day, do their jobs and just want a fair shake. The little guy who feels like no one listens to them. I’m here to say, we are listening. This decision is about you. And to those cynics who question my motivation, I approach every decision through one lens: what is best for New Yorkers.”

Initially due to begin  June 30, the MTA’s new $15 congestion toll will affect anyone entering Midtown, including residents who don’t drive. This move has sparked outrage among businesses and residents, as costs are expected to be passed on to consumers.

The NY Post spoke to a spectrum of New Yorkers on this contentious issue.

Mechanical East, a Brooklyn-based air-conditioning and ventilation service firm, has already informed its customers that it will impose a $15 surcharge for all work orders below 60th Street to offset the toll. “Starting June 30, all NYC calls below 60th Street will be charged a $15 surcharge for NYC congestion fee,” states a bill sent to a Manhattan customer after a service visit.

Daniel Flancraich, vice president of Mechanical East, explained the surcharge: “This announcement to my clients is self-explanatory.” Critics have long warned that the toll would lead companies to pass on additional costs to customers.

Car drivers will face a $15 toll, while large trucks will be charged between $24 and $36 per trip, depending on their size. “Hold onto your wallets, because the price of everything is about to go up even more in New York, especially within the congestion pricing tax zone,” Joshua Bienstock, spokesman for Keep NYC Congestion Tax Free, told the NY Post. His group obtained a copy of Mechanical East’s bill from a customer and highlighted that companies could exploit the toll by charging multiple customers for a single entry into the zone.

Bienstock accused the MTA of disregarding the toll’s inflationary impact on hardworking New Yorkers. “All they care about is squeezing more money out of hardworking New Yorkers; they could care less about the inflationary nature of their tax,” he said.

The congestion pricing initiative aims to reduce congestion and pollution in Midtown while generating revenue for mass transit improvements. The law, passed in 2019 and supported by former Gov. Andrew Cuomo and the Democrat-controlled legislature, has the backing of current Gov. Kathy Hochul, the NY Post pointed out,

Bienstock criticized the policy, claiming it will allow businesses and ride-share companies to profit at the expense of everyday citizens. “How can a customer know how many stops a delivery or service vehicle is making in the zone? [Businesses] will profit from this fiasco, as will Uber and Lyft, while everyday citizens are caught holding the bill as usual. This is Governor Hochul’s New York,” he said.

Kathryn Freed, a Manhattan resident and plaintiff in a lawsuit against the toll, expressed concerns about its impact on apartment dwellers, particularly those on fixed incomes in public housing. “There is no rail freight in Manhattan,” Freed told the NY Post. “Officials didn’t look at the economic impact of the congestion toll.”

Frank Arroyo, owner of Frank’s Bike Shop on Grand Street, expects his delivery costs to rise significantly due to the toll. “It’s going to increase the delivery costs. The bikes are all warehoused outside the zone.”

Queens Chamber of Commerce President Tom Grech pointed out the impracticality of service deliveries via public transit. “You can’t do service deliveries on the bus and subway,” he said.

The MTA argues that the new toll will generate $1 billion annually, funding new subway trains, signal overhauls, an expansion of the Second Avenue subway into East Harlem, and other major projects. John McCarthy, the MTA’s chief of policy and external relations, claimed the toll will ultimately save money.