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.
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Six Ways to Optimize Your Charitable Giving Before Year-EndAs 2024 winds down, right now is the time to look at how you plan to handle your charitable giving. The sooner you start, the more tax-efficient you can be.
-
Structured Settlement Annuity vs Lump-Sum Payout: Which Is Better?As the use of structured settlement annuities grows, it can be tough to decide whether to take the lump sum to invest or opt instead for guaranteed payments.
-
What to Do as Soon as Your Divorce Is FinalDon't delay — getting these tasks accomplished as soon as possible can help you avoid costly consequences.
-
How to Fight Inflation's Hidden Threat to Your SavingsIf higher prices are putting your savings goals on hold, you're in danger of financial erosion. Fortunately, several strategies can help stop the spread.
-
Seven Luxury Places to See the Northern Lights This WinterThe northern lights will be at their most captivating this winter. Fancy making them even more magical? From hotels on ice to glass cabins and mountain yurts, here are seven places to see the northern lights with luxury winter stays.
-
Does a Farm Need a Different Homeowners Insurance Policy?Homeowners insurance is all about providing the right tool for the right exposure, and life on the farm comes with different risks than life in the city.
-
How One Caregiver Is Navigating a Loved One's DementiaShe's spent many hours doing research and speaking with other caregivers to find her way to resources designed to help caregivers.
-
October CPI Report Hits the Mark: What the Experts Are Saying About InflationCPI While the current pace of rising prices appears to have leveled off, the expected path of rate cuts has become less certain.
