Gov. Kathy Hochul is now politically owning the future of congestion pricing, promising she’s committed to turning the tolling program on by January —- arguing the unsavory tax will end up benefiting New Yorkers in the long run.
“This is New York. You gotta take the subway,” Hochul told NY1 in an exclusive interview Thursday.
Shortly after announcing she will raise money for subway repairs by taxing drivers in Manhattan, Hochul rode the subway.
“Any increase in volume that we’ve been anticipating — we hope more people feel comfortable taking the subway. Our job is to keep them safe, make sure that they’re running on time,” she said.
While riding the 4 train from Grand Central Station downtown, Hochul said she hopes taxing drivers changes habits and pushes them onto transit lines.
“We have so much accessibility to transit and buses that go to far out counties like Rockland and others where people don’t have to worry about having to drive into work. We hope people will rethink their habits and take public transit,” Hochul said.
Hochul halted congestion pricing weeks before last June’s primary election, when Democratic House seats on Long Island and in the Hudson Valley were at risk.
Defending reviving the program, Hochul said at a separate press conference on Thursday at her Midtown Manhattan office that charging the original tax of $15 per passenger car was too expensive.
“I’m obligated to follow New York law. And I worked hard to find a creative solution to relieve the burden on these same individuals who are struggling. That’s all I keep talking about: I’ve heard them. I spend more time in diners than probably anybody in this room,” she said.
Hochul says politics had nothing to do with the change.
“If you take the election out of this, it is a very normal sequence of events.”
Now, she’s moving to revive the program on Jan. 5, weeks before President-elect Donald Trump takes office. A known program critic, Trump actually praised Hochul in a statement Thursday before attacking the toll plan.
“I have great respect for the Governor of New York, Kathy Hochul, and look forward to working with her to Make New York and America Great Again. But I strongly disagree with the decision on the congestion tax. It has never worked, but especially so with a city, town, or village that is trying to come back from very rough times, which can certainly be said of New York City,” he said in a statement.
“It will put New York City at a disadvantage over competing cities and states, and businesses will flee. Not only is this a massive tax to people coming in, it is extremely inconvenient from both driving and personal booking keeping standards. It will be virtually impossible for New York City to come back as long as the congestion tax is in effect. It will hurt workers, families, and businesses, but in particular, anything to do with jobs. It is the most regressive tax known to womankind (man!).”
Critics hope Trump will kill the tolling once in office, but Team Hochul argues they believe they are on solid legal ground.
“Everyone on the legal side has said that this is a strong way forward,” Kathryn Garcia, the state’s director of state operations, said.
Hochul said the new tax isn’t as bad as an existing Trump-imposed policy: the removal of the state and local tax deduction.
“Anybody who’s concerned about the cost of living on New Yorkers — what about the state and local tax deduction?” she said. “What they did was cost New Yorkers, average New Yorkers, $11,000 more a year and that pales in comparison to the additional costs of these initiatives.”
But affordability concerns could still exist. The tolls could go up in three years and Hochul could approve additional taxes on New Yorkers to help pay for the MTA’s promised $15 billion.
“Over time, we’re going to review the results of congestion pricing,” Blake Washington, director of the state Division of the Budget, said. “And the governor has charged myself, she’s charged the MTA, to not increase those dollars unless we’re satisfied that it’s absolutely necessary.”
Hochul also has her political future to worry about and this controversial tax could be a negative ahead of her 2026 reelection bid.