What happened: New York Governor Kathy Hochul (D) June 5 directed the Metropolitan Transportation Authority (MTA) to “indefinitely pause” implementation of a New York City (NYC) congestion pricing plan, which was set to go into effect on June 30. Hochul cited concerns the plan would hamper the city’s post-pandemic urban recovery.
Congestion pricing for NYC was approved by the state legislature and then-Gov. Governor Andrew Cuomo (D) in the 2019 annual budget. Federal officials signed-off on the plan in 2023.
Why it matters: The plan would have charged drivers $15 to enter the most congested areas of Manhattan, which the Hochul administration estimated would raise an estimated $1 billion to support the city’s transit capital program and help the city reach its carbon reduction goals. The proposal was the subject of several lawsuits by organizations representing drivers, as well as neighboring states.
What’s next: In light of the pause, the MTA expressed uncertainty about funding a planned $15 billion bond, while opponents vowed to have the plan formally cancelled.