Governor Hochul Halts Manhattan Congestion Toll Indefinitely

New York Governor Kathy Hochul has indefinitely paused the planned congestion pricing toll for drivers entering Manhattan's central business district, originally set to start on June 30. Citing high inflation and living costs, Hochul opted to delay the program intended to reduce traffic and fund mass transit improvements.

New York Governor Kathy Hochul said on Wednesday she has ordered an indefinite halt to the planned toll on drivers entering Manhattan's central business district that had been set to start in just weeks. New York City's first-of-its-kind-in-the-U.S. congestion pricing program had been set to begin on June 30. Under the plan, motorists would pay toll of $15 during daytime hours for vehicles driving in Manhattan south of 60th Street.

New York lawmakers approved the plan in 2019 to provide funding to improve mass transit by using tolls to manage traffic in central Manhattan. Hochul, a Democrat, said she had come to the "difficult decision" that congestion pricing could not begin: "I have directed the (Metropolitan Transportation Authority) to indefinitely pause the program," she said.

"My focus must be on putting more money back in people's pockets," Hochul said in remarks broadcast by her office, citing high inflation and the high cost of living for many New Yorkers. "And that's why I must stand up and say no to implementing the congestion pricing toll at this time." New York City, whose traffic is the most congested of any U.S. city, would become the first major city in the U.S. to follow London, which implemented a similar charge in 2003.

The plan faces legal challenges including one from New Jersey. It received the green light last year from the Federal Highway Administration. The congestion pricing plan was originally projected to start in 2021 but the federal government under President Donald Trump took no action. The city had planned to charge up to $36 for larger trucks and buses.

New York says more than 900,000 vehicles enter the Manhattan Central Business District daily, which reduces travel speeds to around 7 mph (11 kph) on average. New York had said the charge would cut traffic by 17% and improve air quality and increase transit use by 1% to 2%, as well as generate $1 billion to $1.5 billion a year and support $15 billion in debt financing for mass-transit improvement.