New York Governor Kathy Hochul surprised many by putting a stop to a plan to charge drivers who enter Manhattan, a plan that has been in the works for years and was set to start at the end of this month.
Hochul mentioned concerns about inflation and how it affects working-class New Yorkers as reasons for pausing the congestion pricing plan. She said, “My focus must be on putting more money back into people’s pockets.”
Instead of the tolling plan, Hochul is considering a tax on businesses in New York City. This move comes as a surprise because the new pricing system was expected to begin on June 30 and would have been the first of its kind in the US, bringing in $1 billion annually. The money was meant to improve New York City’s transit system, including upgrades to subways and buses.
The decision to halt congestion pricing is a big change from Hochul’s previous support for the plan just two weeks ago. She had seen it as a way to reduce traffic in the city. However, the plan was unpopular among New Yorkers, with many people disapproving of it in a recent poll.
The delay in congestion pricing has disappointed transit advocates who believe it will stall important infrastructure upgrades and hurt the Metropolitan Transportation Authority’s ability to serve the New York City area.
New Jersey Governor Phil Murphy thanked Hochul for pausing the implementation of congestion pricing. However, delaying or canceling congestion pricing without another funding source could create financial problems for the Metropolitan Transportation Authority.
Hochul said the state has set aside funding to support the agency’s capital plan, and officials are looking into other ways to finance transit improvements.
