NYC Congestion Pricing Faces Urgent Deadline With Trump Victory

The return of former President Donald Trump to the White House could have significant financial implications for the country's largest mass transit system, the Metropolitan Transportation Authority (MTA). As the Republican candidate, Trump pledged to "TERMINATE Congestion Pricing in my FIRST WEEK back in office," vowing to put an end to the Manhattan vehicle-tolling program that Governor Kathy Hochul paused indefinitely in June. With Trump's Tuesday night win, transit and Albany watchdogs warn that the clock is ticking for Hochul to salvage the tolling program approved by state lawmakers in 2019.



Hochul's abrupt halt of congestion pricing created a more than $16 billion hole in the MTA's current five-year capital program, leading to delays in signal upgrades, station accessibility, and subway car replacements. It also put on ice a state commitment to fund $155 million in environmental mitigation programs into "communities already overburdened by pre-existing air pollution and chronic diseases" as a result of vehicle emissions. With Trump's win, Hochul has just 75 days to restart the program before he takes office and likely terminates it.



Advocates for the plan that was set to generate billions of dollars for the MTA urge Hochul to act swiftly. Lisa Daglian, executive director of the Permanent Citizens Advisory Committee to the MTA, stated, "The worst-case scenario for congestion pricing has come true. It’s now or never." Rachael Fauss, senior policy advisor for Reinvent Albany, argued that Hochul could still pull it off if she acts quickly and sticks closely to the Final Environmental Assessment signed off on by the federal government.

Hochul's decision to pause congestion pricing ended up not even serving her political goals, with experts saying the issue barely registered in Tuesday's vote. Evan Roth Smith, a New York-based political strategist and pollster, noted, "There doesn't seem to be any evidence that congestion pricing affected who did well and who did poorly [on Tuesday] night. I don't think congestion pricing is the difference between Mondaire Jones losing [to Republican Mike Lawler] and Josh Riley winning [in the Hudson Valley]."



With Trump's victory, Hochul faces an urgent deadline to find alternative funding for NYC's transit system. One option is to explore public-private partnerships, leveraging private investment for infrastructure projects. Another is to tap into federal infrastructure funds, although Trump's record suggests this may be challenging. Hochul could also consider reprioritizing state funds or seeking additional federal grants. However, these alternatives may not fully replace the $15 billion in revenue expected from congestion pricing.

Hochul must act swiftly to restart congestion pricing before Trump takes office on January 20, as his hostility towards rail projects may jeopardize the $15 billion in funding needed for MTA capital improvements. Allowing congestion pricing to die under Trump's administration could have dire economic and environmental consequences for New York City, exacerbating the subway system's degradation and failing to address air pollution and chronic diseases in overburdened communities.

In conclusion, Hochul's decision to "un-pause" congestion pricing before Trump's inauguration is crucial for the MTA's financial outlook. With Trump vowing to terminate the program, Hochul has just 75 days to secure changes to toll prices or exemptions. Failure to act could result in a $16 billion hole in the MTA's capital program, leading to delays in signal upgrades, station accessibility, and subway car replacements. Additionally, a state commitment to fund $155 million in environmental mitigation programs would be put on ice, further straining the MTA's budget. Given Trump's history of hostility towards rail projects, Hochul must act swiftly to secure the MTA's financial future.