Gov. Hochul says critics of congestion pricing pause lack ‘imagination’ on funding MTA
June 10, 2024, 1:40 p.m.
With state lawmakers done with their legislative session for the year, it remains unclear how the transit agency will make up for lost revenue from the tolling program.
Gov. Kathy Hochul on Monday addressed critics of her decision to delay the rollout of congestion pricing in New York City, pledging that she and other state leaders would find alternative ways to fund long-planned MTA projects without the tolling program taking effect on June 30 as originally envisioned.
“To assume that the only funding source had to be congestion pricing shows a lack of imagination about understanding other opportunities to fund these projects,” she told reporters at an unrelated press conference at Bronx Borough Hall.
“There is no lack of imagination here, because we will find a funding source,” Hochul added. "It doesn't have to be a one-shot.”
The governor’s comments came amid the fallout from her announcement to “indefinitely pause” the city’s years-in-the-making congestion pricing plan, which would have charged drivers a $15 base fare to enter Manhattan below 60th Street. The toll revenue and associated bond financing would have bankrolled $15 billion in upgrades to subway stations, commuter railroads and the MTA’s bus fleet, including accessibility improvements and necessary maintenance. The MTA also planned to use the money to pay for the extension of the Second Avenue subway into East Harlem.
Her last-minute reversal, just weeks before the program’s scheduled start date, sent some officials into a tailspin about how the transit agency would raise new revenues to cover the improvements. It also unleashed a torrent of political pushback from advocates for transit, people with disabilities, business and the environment — as well as some of Hochul’s fellow Democrats at the local, state and federal levels, who accused the governor of caving to suburban interests in an election year.
And in a statement on Friday, MTA officials said they would have to devote existing capital funds to “only the most basic and urgent needs” after Hochul’s announcement, which she said was based on hearing from residents and small business owners about economic difficulties from inflation. MTA officials said they could not implement congestion pricing on schedule, since Hochul’s move meant “we no longer have the State’s consent” as required under federal rules.
But Hochul said on Monday she was “confident” the MTA projects would eventually advance. She did not immediately identify a new funding source for the work and state lawmakers went home from Albany without a solution after their legislative session for the year concluded over the weekend.
“They will be settled, but I need some time to work with the Legislature on this, and the [legislative] leaders are committed to working with me on this, and we're speaking on a regular basis about it,” Hochul said. It is possible that lawmakers will be called back to Albany for a special session to sort out the MTA’s financial situation, but none has yet been announced.
Hochul also said she’s been communicating with MTA Chair Janno Lieber about the situation and spoke with him on Sunday, even as he has been conspicuously absent from public view since her announcement last Wednesday. “I am joined at the hip with the MTA on all of their projects going forward,” she said.
Spokespeople for the MTA did not immediately reply to a request for comment on Monday.
According to the governor, the original congestion pricing scheme is still on the table, along with other potential options to help reduce vehicular traffic and pollution in the busiest areas of New York City.
“I wanted to reserve the right to continue studying this, considering our options, hearing from people, and that's exactly what I did,” Hochul said. “There’s a big difference between a pause and an elimination. Elimination was an option. I said I'm committed to congestion pricing.”
The Riders Alliance, which advocates for commuters who use the MTA, was quick to pan the governor after her remarks in the Bronx.
"This morning, Governor Hochul reiterated her commitment to congestion pricing for the first time since her change of heart,” said Danny Pearlstein, the group’s policy and communications director, in a statement. “She also canceled a campaign fundraiser with car dealers planned for Queens on Tuesday. In an instant, the governor threw the future of the MTA and New York City into chaos, but she can reverse herself again with the flip of a switch."
Stephen Nessen contributed reporting.
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