What happened: New York Gov. Kathy Hochul (D) announced on Nov. 13 that New York City’s congestion pricing plan will go live Jan. 5, 2025.
Why it matters: The governor put the program on “indefinite pause” in June – only 25 days before the tolls were scheduled to begin – citing concerns it would hamper the city’s post-pandemic urban recovery. The revised program approved by Gov. Hochul this month lowers the original $15 peak base toll to $9, with the potential for future increases. Drivers without E-ZPass and commercial vehicles will pay higher fees, while overnight trips will pay only 25 percent of the peak fee.
State law authorizes the Metropolitan Transportation Agency (MTA) to utilize the revenue for a $15 billion bond that will support the city’s transit capital plan and help reach its carbon reduction goals. The reduced fee may require the agency to extend the life of the bond, potentially increasing interest payments.
What happens next: The MTA board approved the adjusted program on Nov. 18. The U.S. Department of Transportation (U.S. DOT) is expected to provide final approval. However, five Republican House members representing New York requested President Donald Trump, who has voiced opposition to the congestion pricing plan, rescind approval when he returns to office Jan. 20, 2025.
*Update: Gov. Hochul’s administration signed the updated U.S. DOT’s Value Pricing Pilot Program on Nov. 22, clearing the way for congestion pricing to take effect in New York City on Jan. 5. One remaining lawsuit from the state of New Jersey requesting a full environmental impact statement of congestion pricing will be heard on Dec. 20.