New York Governor Kathy Hochul is revisiting the idea of congestion pricing for Manhattan, but with a lower toll than previously proposed. The move comes as the Metropolitan Transportation Authority (MTA) faces a significant budget shortfall, with a recent report revealing a $211 million deficit due to the pause in congestion pricing. The governor is aiming to work with the legislature to lay out an amended congestion pricing plan by the end of the year.
The congestion pricing plan, passed by the New York state legislature in 2019, was designed to reduce traffic and raise revenue for the MTA. However, the governor's decision to pause the plan has resulted in a $16.5 billion gap in the MTA's capital investment plan. The loss of tolling revenue could also impact the operating budget by more than $800 million, as delaying purchases of new buses and trains will result in higher maintenance costs to keep older equipment running, according to a report by Smart Cities Dive.
The MTA's newly appointed president, Demetrius Crichlow, is facing the challenge of this budget crisis. Without additional funds, the MTA may have to make tough choices, such as service cuts or fare hikes. MTA Chair and CEO Janno Lieber warned, "We either increase fares dramatically or we cut service — both terrible options," as reported by FOX 5 NY.
In addition to the operational budget shortfall, the MTA’s capital improvement plans are also at risk. Projects such as extending the Second Avenue Subway and making more stations accessible may be delayed. Governor Hochul has faced significant criticism for pausing congestion pricing and has promised to work with lawmakers in the next legislative session to address the issue.