New York Governor Hochul announced on November 14 that the planned congestion pricing fee would be reduced by 40%, with the base rate dropping from $15 to $9, set to be implemented on January 5 next year. However, New Jersey Governor Murphy has expressed that the price reduction plan is still unacceptable. Murphy had previously filed a lawsuit against the congestion pricing fee and his lawyer has requested the court to expedite a ruling.
Hochul, during a press conference on that day, stated that as she had announced the suspension of imposing the congestion pricing fee, the $15 base rate was deemed too high given the current economic environment. Thus, it has been reduced to $9 and is estimated to save drivers up to $1,500 annually. The fee collection from congestion pricing will fully support MTA’s capital projects to alleviate street congestion, reduce pollution, and provide improved public transportation for millions of New Yorkers. This plan will be discussed at the next MTA board meeting on November 18. It is scheduled to be implemented starting midnight on January 5 (Sunday) for vehicles entering the Central Business District south of 60th Street in Manhattan.
The revised preliminary fee structure for the congestion pricing plan is as follows:
– Daytime usage with E-ZPass payment: $9 for cars (charged once daily), $4.5 for motorcycles (charged once daily), $14.4 for small trucks and non-commuter buses; $21.6 for large trucks and tour buses.
– During nighttime (Monday to Friday from 9 pm to 5 am, weekends from 9 pm to 9 am), charges will be 75% of the daytime rates.
– Vehicles that have paid tolls to enter the CBD will receive a 40% discount on the crossing credit, reducing the car discount from $5 to $3.
– Taxis and luxury car services will charge passengers $0.75 per ride for congestion pricing, while ride-hailing services will charge $1.5 per ride.
Additionally, eligible drivers such as the disabled will receive additional discounts, exemptions, and waivers.
Despite the reduced pricing for congestion fees, it is expected to still meet the original goal of enabling MTA to issue $15 billion in bonds to support major construction projects. These projects include the second phase of the Second Avenue Subway extension to East Harlem, signal system modernization for subway lines like A/C and B/D/F/M, the installation of accessibility facilities like elevators at over 20 subway stations, the purchase of several hundred new electric buses, improvement projects for the Long Island Rail Road (LIRR) and Metro-North Railroad, and the construction of the Interborough Express cross-borough line. Hochul has also directed MTA to save $100 million annually and promised to provide more funds for MTA’s 2025-2029 capital projects.
Hochul’s pricing reduction and implementation plan have received wide support from various congestion pricing organizations, but have also faced criticism from opponents of congestion fees. Councilman Holden released a statement expressing that Hochul, by suspending the congestion fees before the elections to help the Democratic Party win, and then reinstating them after the party’s defeat, is engaging in blatant political maneuvering, betraying the people of New York. Voters are expected to vote her out in the next election.
According to New York Post, New Jersey Governor Murphy stated that Hochul’s price reduction plan still unfairly burdens hardworking New Jersey commuters. He strongly opposes any attempt to forcefully pass a congestion pricing fee proposal, especially considering the dissatisfaction with the economic situation and inflation expressed by American voters in last week’s Tuesday elections. Murphy had previously filed a lawsuit against the congestion pricing fee at the Newark federal court and his lawyer recently wrote to presiding judge Gordon on November 13, requesting a swift ruling. Aside from this lawsuit, there are over a dozen other litigations opposing the congestion pricing fees.