Governor Kathy Hochul is contemplating significant revisions to the congestion pricing plan for Manhattan, potentially lowering the toll rates and exempting certain municipal workers, including police officers and teachers. This move comes after Hochul had previously suspended the implementation of the $15 toll proposal in June. While the specifics of the revised toll plan remain unclear, the Governor has indicated that any new proposal will not be introduced until after the November elections to avoid affecting Democratic candidates negatively.

Hochul’s potential adjustments to the congestion pricing scheme include a reduction in the toll amount for drivers entering Manhattan’s Central Business District, which is located south of 59th Street. Additionally, she is considering exempting municipal workers who commute into this area for their jobs. This exemption would apply to various city employees, such as police officers, firefighters, ambulance crews, and teachers, who are essential to the functioning of New York City. The Governor’s consideration of these changes appears to be in response to both public and political pressures, as well as to address concerns about the impact of the toll on workers who provide critical services.

A source familiar with Hochul’s deliberations mentioned that the Governor acknowledged the need to lower the proposed toll and review the specifics of potential exemptions for city workers. This source, who wished to remain anonymous, indicated that the Governor has expressed disappointment with the current state of negotiations and the feedback received from mediators. If Hochul’s revised plan moves forward, it would necessitate finding alternative funding sources for the Metropolitan Transportation Authority’s (MTA) capital plan to compensate for the anticipated revenue shortfall.

The MTA, which had invested approximately $500 million in technology and infrastructure for the tolling system, is preparing to vote next month on its 2025-2029 capital plan. The $15 congestion toll was initially projected to generate up to $1 billion annually to support transit maintenance, purchase new rail cars, and fund expansion projects. However, this plan has faced significant hurdles, including Hochul’s abrupt decision to pause the implementation.

The environmental assessment of the congestion pricing plan, which had been approved by federal authorities, had previously suggested that toll rates could range from $9 to $23 during peak hours, depending on the area and type of vehicle. The MTA’s traffic-mobility review board had recommended a $15 toll for passenger vehicles and even higher rates for trucks during peak times. Advocates of the toll argued that it would reduce traffic congestion, lower pollution levels, and provide a stable revenue stream for public transportation. Opponents, however, feared that the toll would disproportionately affect everyday New Yorkers struggling with economic challenges.

Hochul’s decision to pause the congestion pricing plan in June was met with speculation that political considerations influenced her decision. It was suggested that pressure from Democrats, including House Minority Leader Hakeem Jeffries, and concerns about the toll’s impact on electoral prospects may have played a role. Hochul has denied these claims, asserting that her decision was driven by economic concerns and the burden the $15 toll would place on working people.

A Siena College poll released last week revealed that 59% of New York voters support scrapping the congestion pricing scheme entirely, reflecting widespread public dissatisfaction. Staten Island Borough President Vito Fossella, who co-plaintiff in a lawsuit against the toll, criticized any new toll proposal as a “money-grabbing scam” and argued that lowering the toll would not resolve the issue.

State lawmakers have noted that Hochul has yet to present a formal proposal regarding the revised congestion pricing plan. The Governor’s office has not confirmed when a new proposal might be introduced, with many expecting that details will emerge in her 2025 State of the State address in January. Kathryn Wylde of the Partnership for New York City and Lisa Daglian of the Permanent Citizens Advisory Committee to the MTA have both voiced concerns about the potential delay and the need for a clear resolution.

Legal challenges to Hochul’s decision have also emerged, with two lawsuits filed in Manhattan state Supreme Court questioning the Governor’s authority to halt the congestion pricing plan, which was enacted by former Governor Andrew Cuomo in 2019. These legal disputes add another layer of complexity to the already contentious issue of congestion pricing in New York City.