Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Manhattan’s congestion charge is back, maybe

I first wrote about Manhattan’s proposed congestion charge back in 2018. Naturally, some people supported it and some people opposed it. Four years later, it was reported that the charge was still being considered for the area of the island south of 60th Street, and that it could generate an additional $1 billion in revenue for the city’s transportation authority. But then in June of this year, right before the charge was set to come into effect on June 30, 2024, New York Governor Kathy Hochul said “nah, let’s pause this indefinitely.” And at that point, it felt mostly dead.

Nope: A revised tolling plan has just been announced — the charge has been reduced from $15 to $9 — and Hochul is now trying to jam it through before Trump takes office in January. Trump opposes the charge and has branded it the “most regressive tax known to womankind”, so there’s a real deadline here. This could get interesting. Do you think it will actually happen, some 6 years later? (In reality, the timeline is far longer. Congestion pricing also looked promising during the Bloomberg era, but then similarly died. And I’m sure there were even earlier proposals.)

One response to “Manhattan’s congestion charge is back, maybe”

  1. scottonthespot Avatar

    Congestion Kathy, as the Governor here in NY is sometimes called, has probably doomed congestion pricing by waiting so long there is not even a 6-month test period for people to get used to this major change before Trump gets in and kills it, maybe for the whole country if it’s done by an act of congress covering the U.S. A judge in any of the over half dozen lawsuits to prevent it might put a stay on it too, making it pause until Trump takes office; he has sworn to kill it in his first week. Trump claims it will prevent NYC from “coming back” but that’s just as false as the reasons the governor gave that pausing it would help working class people.

    Working class people cannot afford to park and run cars into midtown Manhattan anyway (illegal placard abuse is another, but related issue, because it allows municipal worked to park for free where they shouldn’t be allowed to park at all). The $15, or $9, charge is the least of the expenses for anyone coming into the city from the outer boroughs or NJ. New Jersey’s governor is leading one of the lawsuits.

    There are dozens of organizations advocating for congestion pricing since there’s no other way to leverage $1b congestion pricing is supposed to earn, into $15b more through bonds. The Metropolitan Transit Authority desperately needs the money since the pandemic ridership has not yet fully returned and it needs to do $60b in maintenance and new projects like the Second Avenue subway, over the next 5 years.

    I doubt it will happen. The governor simply, and maybe cynically, let it go too long and there are too many ways to kill it now.

Leave a Reply

Your email address will not be published. Required fields are marked *