(Bloomberg) -- New York is running short on time to implement congestion pricing in Manhattan after the election of Donald Trump, who opposes the novel tolling initiative.
Governor Kathy Hochul paused the plan which would have raised $15 billion for the city’s cash-strapped transit system just weeks before it was set to be implemented in June, saying the $15 cost for most drivers would strain working families. Now, with Trump’s inauguration set for Jan. 20, there’s a narrow window to get the program started.
“We’re watching this,” Hochul said at a press conference on Wednesday. “I simply said this was a pause. We know our timeframe better than anybody.”
The Metropolitan Transportation Authority — the nation’s largest public transit system which runs New York’s subway, bus and commuter rail lines — needs billions to update its more than 100-year-old system. Its $65.4 billion capital plan that starts next year is only about half funded, and it has a long list of modernization projects. The money raised from congestion pricing was expected to help by generating an estimated $1 billion each year that the agency could bond against to finance infrastructure plans.
“Donald Trump has committed to ending congestion pricing, slashing federal transit funding, and inflicting as much damage as he can on New York,” Betsy Plum, executive director of Riders Alliance, which advocates for reliable and affordable mass-transit in the city, said in a statement Wednesday. “The sooner we turn on the program, the more protected and insulated it is from even the most hostile of federal governments.”
If Hochul were to restart congestion pricing — which would charge motorists driving into Manhattan south of 60th Street — it would need to get any remaining federal approvals and begin charging drivers before Trump is sworn in, or else a new administration could stall the program. Earlier this year, Trump, who was born and raised in New York City, said the plan would be a “disaster” and committed to terminating the program.
Federal Approvals
The Biden administration has already approved an initial tolling structure that includes the $15 fee. Altering that pricing plan would require another federal sign off. That’s possible to get done before Trump begins his second term, but would leave Hochul and the MTA with limited time, said Tom Wright, president and chief executive officer of the Regional Plan Association, a nonprofit organization focused on improving the economy and quality of life for the New York City area.
“The onus is on her to make sure it’s bullet-proof and it doesn’t get delayed,” Wright said about the tolling structure. “If she amends it too much, it could require another round of federal review which would kill it.”
Hochul on Wednesday said again that she would present a funding solution for the MTA by the end of 2024, but that will need to include additional revenue or new sources of funding. Just last year state lawmakers directed more money to the MTA to help resolve budget deficits as the agency looks to boost ridership and cut expenses.
MTA officials are used to lobbying state and federal lawmakers for financial help, especially after the pandemic decimated ridership and transit systems were dependent on federal funds.
“We will make the case in Washington, where there is a long history of bipartisanship on transportation issues,” Janno Lieber, the MTA’s chief executive officer, said in a statement Wednesday.
Without sufficient state and federal help, the MTA may be forced to take on even greater levels of debt to cover infrastructure costs, implement service cuts and layoffs and boost fares beyond the already-planned 4% bi-annual increases.
--With assistance from Elizabeth Campbell.
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