Putting Commuters First, Keeping Costs Down: Governor Hochul Unveils Plans for Future of Transit and Traffic in New York City, Including a 40 Percent Reduction in Congestion Pricing Tolls

 

Toll Reduction to $9 for Cars Will Save Drivers Up To $1,500 Annually

Commuters Will See New and Improved Subway Service, Second Avenue Subway Extension, Investments in LIRR and Metro North, and Elevator Service for Seniors and People With Disabilities

Outer Borough Residents Will Benefit From Proposed Expansion of Bus Service and Plans To Build Interborough Express — Eliminating 30 Minutes Of Commuting Time Between Brooklyn and Queens

Governor Directs MTA To Make Responsible, Targeted Investments and Find $100 Million in Annual Savings; Commits to Funding 2025-2029 Capital Plan

Governor's Comprehensive Approach Wins Support From Broad Coalition of Environmental Advocates and Business Groups

Governor Kathy Hochul today announced a plan to begin implementing congestion pricing in New York City by early January. In keeping with her promise to lower the cost of tolls from $15, the Governor’s plan features a 40 percent reduction in all tolls for vehicles entering the City’s Central Business District (CBD), saving commuters up to $1,500 per year. That plan also includes new tools to reduce congestion and air pollution in communities citywide – all of which will ensure that the plan achieves the goals of congestion pricing, including $15 billion in mass transit funding to support the MTA’s current Capital Program. Additionally, Governor Hochul committed to funding the proposed 2025-2029 MTA Capital Plan that was approved by the MTA Board in September – the largest capital plan for transit in New York State history.

“As I said from the start, a $15 toll was just too high in this economic climate. That’s why our plan cuts the daytime toll to $9 for cars,” Governor Hochul said. “By getting congestion pricing underway and fully supporting the MTA capital plan, we’ll unclog our streets, reduce pollution and deliver better public transit for millions of New Yorkers.”

Governor Hochul’s new congestion pricing plan has already won support from a broad coalition of stakeholders including the Regional Plan Association (RPA), League of Conservation Voters (LCV), Natural Resources Defense Council (NRDC), Partnership for New York City and Real Estate Board of New York (REBNY), among others.

The adjusted phase in feature will be taken up by the MTA Board at its next meeting on November 18. Under this plan, congestion pricing will be ready for implementation at midnight on Sunday, January 5.

CONGESTION PRICING PLAN

Toll Structure and Delivering $15 Billion Over Time for Current MTA Capital Program

Under the plan announced by Governor Hochul today, the toll structure for entering New York City’s CBD (Manhattan below 60th Street) would initially be as follows, starting at midnight on January 5. This structure represents a 40 percent reduction in all tolls:

• Daytime E-ZPass tolls
  • Passenger vehicles (once per day): $9
  • Motorcycles (once per day): $4.50
  • Small trucks and non-commuter buses: $14.40
  • Large trucks and sightseeing buses: $21.60
• Tunnel crossing credits reduced by 40 percent of original plan
• Nighttime discounts of 75 percent of daytime tolls
• Per-ride fees for all trips to, from, or within the CBD
  • Taxis and black cars: $0.75
  • App-based for-hire vehicles: $1.50

For commuters who drive into the CBD five days per week, this 40 percent reduction in the toll will save them approximately $1,500 per year.

Additionally, some eligible drivers will receive additional discounts, credits and exemptions, such as a low-income volume discount or a qualified disability exemption.

While the toll structure under this plan is lower than the tolls initially proposed, it will still enable the MTA to leverage $15 billion in bonds for the MTA’s current Capital Program over time – the same goal for the congestion pricing program. This includes supporting current Capital Program initiatives including:

• Second Ave Subway Phase 2 extension to East Harlem
• Modern signal systems on segments of the A/C and B/D/F/M lines for over 1.5 million daily riders
• Accessibility improvements at more than 20 stations
• Hundreds of new electric buses

Additionally, the administration expects to achieve congestion reduction and air quality benefits set forth in the environmental review for the congestion pricing program, including a 5 percent reduction in vehicle miles traveled and a 10 percent reduction in the number of vehicles entering Manhattan’s CBD.

Pursuant to Governor Hochul’s plan, MTA will not raise the initial tolls beyond the following percentages of the approved structure:

• 60 percent (i.e. a $9 daytime automobile E-ZPass toll) from 2025 through 2027
• 80 percent (i.e. a $12 daytime automobile E-ZPass toll) from 2028 through 2030

The phase-in feature over time will help drivers adapt more easily to the program and give the MTA and other stakeholders the ability to monitor data regarding implementation and effects.

Improving Air Quality in Environmental Justice Communities

Governor Hochul’s congestion pricing plan commits to funding the low-income discount and every place-based and regional mitigation as already committed to, including:

• $15 million to replace diesel-powered Transport Refrigeration Units at Hunts Point Produce Market in the Bronx
• $20 million to establish an asthma center and case management program in the Bronx
• $20 million to implement electric truck charging infrastructure
• $10 million to install air filtration units in schools near highways
• $10 million to install roadside vegetation
• $25 million to renovate parks and greenspace
• $20 million to expand the NYC Clean Trucks Program
• $5 million to expand the NYCDOT Off-Hours Delivery Program
• A 75 percent discounted overnight toll to reduce diversions and encourage off-hours truck deliveries
• A 50 percent discount on the daytime E-ZPass toll rate after the first 10 trips in each calendar month for low-income drivers

New Proposals to Further Reduce Traffic and Pollution

The Governor is also proposing a package of new measures that will help reduce traffic and air pollution throughout New York City and beyond. These proposals will be included in her Executive Budget proposal in January and will include:

• Expansion of the successful joint MTA-NYC Automated Camera Enforcement program to permit enforcement of “blocking the box” violations at NYC street intersections, helping avoid gridlock and keep traffic moving smoothly.
• Expanded statutory authorization for the use of weigh-in-motion (WIM) technology to help keep overweight vehicles off of our streets and improve traffic flow.
• Raising the threshold value for authorized removal of abandoned derelict vehicles, and permitting the City to impose a surcharge for street permits on construction projects that block traffic lanes, promoting efficient use of our curb space.

Expanding Bus Service Across New York City

Governor Hochul believes it is necessary to expand MTA bus service in New York City to increase and improve alternatives to driving – particularly for outer borough communities without convenient subway access. To actualize that goal, the Governor is proposing that the MTA increase frequency, make running time adjustments and deliver other enhancements on at least 23 bus routes citywide – including at least 15 local routes and eight express routes. Six of those express routes have been previously announced: BM2, BM5, SIM1C, SIM4C, SIM23 and SIM24. The other selected routes will be determined by the MTA based on factors including ridership, crowding, equity priority areas and the presence of bus priority lanes.

Funding the Proposed 2025-2029 MTA Capital Plan

In September, the MTA Board approved a proposed 2025-2029 Capital Plan and sent it to the Capital Program Review Board for further approval as required under statute. The proposed plan would spend a total of $68.4 billion, including $47.8 billion for NYC Transit, Staten Island Railway and MTA Bus Company, $6 billion each for Metro-North Railroad and Long Island Rail Road, $5.3 billion for major projects and expansion, and $3 billion for MTA Bridges and Tunnels. This is the largest MTA capital plan proposed in New York’s history.

The Governor highlighted that potential contributions from federal, state, City and MTA sources are expected to be sufficient to fund approximately half of the plan.

Governor Hochul also highlighted her full support for the MTA 2025-2029 Capital Plan and her intention to work during budget negotiations next year with federal, State legislative and City partners to close the remaining gap.

Additionally, the Governor stated her commitment to ensuring fiscal responsibility and greater efficiency at the MTA, including directing the MTA to find $100 million in annual savings building on recent cost saving initiatives.