Congestion pricing in NYC has been paused indefinitely by NY Gov. Kathy Hochul. The recorded announcement was released 25 days before the new toll was set to take effect. The governor cited the potential adverse economic impact on commuters, NYC residents and businesses that are still recovering from the Covid lockdowns.
“Let’s be real: a $15 charge may not mean a lot to someone who has the means, but it can break the budget of a working- or middle-class household. It puts the squeeze on the very people who make this City go: the teachers, first responders, small business workers, bodega owners. And given these financial pressures, I cannot add another burden to working- and middle-class New Yorkers – or create another obstacle to continued recovery” said Gov. Hochul in her statement, pausing the new toll.
The Metropolitan Transit Authority (MTA) had overwhelmingly approved the proposed congestion pricing plan by a 12-1 vote. Motorists entering what the MTA calls the Congestion Relief Zone (streets and avenues at or below 60th Street in Manhattan) would have had to pay a toll beginning on June 30.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What next?
The MTA is still facing legal opposition to the plan. The most recent lawsuit was filed in the Southern District of New York on May 30 by the Trucking Association of New York. The suit argues that the congestion pricing policy unfairly targets trucking and logistics companies, which are charged far higher rates than passenger vehicles.
The 110 gantries needed to detect motorists entering the zone and assess tolls have been erected. The MTA signed a contract with a Nashville-based company to install equipment related to the plan across Manhattan at a cost of more than $500 million, according to the New York Times. No information about what will happen to the equipment or the contract signed by the authority has been released.
Gov. Hochul will need MTA approval to halt the implementation of the congestion pricing plan, reported the Times. There is no plan for that vote to take place yet. However, the next regularly scheduled MTA board meeting is June 24.
-
I'm 60, just paid off my $1 million home and have $750K in retirement savings — can I retire now? -
Galentine's Day: A Time to Promote Financial Literacy Among FriendsHere are three things women can do to help their friends gain financial knowledge and confidence.
-
CPI Report Puts the Kibosh on Rate Cuts: What the Experts Are Saying About InflationCPI Consumer price inflation reared its ugly head to start the year, dashing hopes for the Fed to lower borrowing costs anytime soon.
-
Should You Get a Home Warranty?A home warranty could lower your expenses for certain repairs, but you should weigh whether paying the premium is worth it.
-
Listed: Three Fabulous Homes to Retire in PortugalSee three fabulous real estate listings of homes in Portugal for a vibrant retirement, as part of Kiplinger's "Listed" series.
-
How to Use Good Debt (While Identifying and Avoiding Bad Debt)Not all debt is bad, but knowing the difference between good debt and bad debt and how to use them can help you get ahead financially and stay ahead.
-
Four Potential Tax Changes to Keep Your Eye OnMany taxpayers may be surprised by a larger tax bill if the TCJA isn't extended. Check out these proactive strategies to help mitigate some of the impacts.
-
What Can Happen if You Live Together Without a Cohabitation Agreement?Lots of people live together without being married, and there's nothing wrong with that, but if things go south or one partner dies, complications can ensue.
