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 Swing Higher After Early SlumpNegative earnings reactions for Nike, FedEx and Micron kept pressure on the main indexes, though.
-
Annuity Fees: Are You Paying Too Much?Annuity fees include commissions, administrative costs, expense ratios and more. How much is too much and how do you know if you're overpaying?
-
4 Homes for Sale With Basketball Courts for March MadnessSeveral recent real estate listings in the U.S. feature basketball courts fit for March Madness addicts — and alums.
-
Five Things That Are Spiking Your Insurance PremiumIt's a drag, but just as your expenses keep rising, so does the cost of doing business as an insurance company. That means higher premiums.
-
How Savvy Is Your Financial Adviser? Three Ways to Find OutDon't be afraid to ask your adviser if they're keeping up with industry developments and their own training. How else can you know they're giving good advice?
-
Best Buy Tech Fest: Shop Exclusive Deals on Top TechBest Buy’s Tech Fest is live. Shop major discounts on laptops, TVs, and smart home devices for a limited time.
-
Here's How to Get the Disney Plus, Hulu, Max Bundle for $10American Express Platinum cardholders can use their streaming perks to score this ad-free deal for only $10 per month. Here's how.
-
How to Spot and Avoid Real Estate Scams in 2025Learn how to recognize and prevent the latest real estate scams.
-
Beware of TV/Billboard Personal Injury Law Firms: Here's WhyIf you or someone you know is tempted to hire a so-called settlement mill to handle a personal injury case, here are some reasons to reconsider.
-
Loneliness a Risk When Retiring Abroad, Says New StudyMore Americans want to retire abroad, but loneliness can undermine your happiness and health, even in paradise. Here's how to avoid loneliness abroad.
