The Federal Department of Transportation notified the state of New York on Wednesday, February 19th, that the federal government would halt the congestion pricing plan in New York City. Upon hearing this news, the Metropolitan Transportation Authority (MTA) immediately filed a lawsuit, sparking significant public outcry. Taxi industry operators have differing opinions on the cancellation of the congestion pricing plan, with some believing it has its pros and cons. However, businesses are eager for the tolls to be scrapped quickly to save on costs, as analysts suggest that continuing to collect such fees would be unpopular among current politicians.
Some taxi drivers have voiced their views on the benefits and drawbacks of canceling the congestion pricing plan. Mr. Yan, a driver, mentioned that the implementation of the tolls not only significantly improved traffic congestion in Manhattan but also resulted in smoother traffic flow on several congested tunnels and bridges leading to Manhattan. His passenger pickup speed has greatly increased due to the tolls, mentioning, “When I drive to Manhattan to drop off customers, there are only a few cars on the Queensboro Bridge. It used to be always congested, but now there are fewer cars on many bridges.”
However, drivers have noted that the public already pays fees to the MTA through fuel taxes, bridge tolls, and other means, and adding congestion pricing would undoubtedly further burden them. Therefore, canceling the tolls could help them save on expenses, which they view as a positive development.
For small businesses within the Manhattan toll zone and drivers who rely on driving to commute, the impact of congestion pricing is more direct. They have expressed facing daily pressures due to the tolls leading to increased costs of living and goods.
Located on Kenmare Street in Manhattan, Bondy Export Corp specializes in providing household appliances and electronic products for immigrants. The company’s representative, Mr. Avi, bluntly stated that aside from Governor Kathy Hochul, no one likes this policy. He mentioned that their store receives deliveries from large trucks daily, with each truck having to pay an additional $22 to enter the toll zone, costs that are then passed on to the prices of their products, causing price increases. Additionally, delivery drivers at his store are required to pay $9 each day to enter the toll zone, further adding to operational burdens.
One of the company’s delivery drivers, Mr. Phil, admitted that while he does not like Trump, he supports his decision to cancel the congestion pricing plan, stating, “It’s a good move from his government to cancel the tolls.”
Despite the Trump administration’s announcement to terminate the congestion pricing plan, Mr. Yan revealed that as of yesterday, his E-ZPass account continued to be charged for congestion tolls, indicating that the policy is still being enforced. In fact, the MTA has persisted in collecting the tolls and filed a lawsuit in federal court on February 19th, accusing the federal government of rescinding the approved decision.
In response, Democratic leader Yu Jinshan of the 65th District believes that this lawsuit is akin to “hitting a rock with an egg.” According to the capital plan from 2022 to 2026, MTA receives over $20 billion in federal subsidies annually, while the projected annual revenue from congestion pricing is less than $10 billion, significantly lower than federal grants. Offending the Trump administration and risking the withholding of federal funds may result in irreversible losses.
Governor Hochul has also expressed support for the MTA. In contrast, Yu Jinshan believes that the governor should have taken this opportunity to cancel the congestion pricing plan to save face, but instead chose to support the MTA’s lawsuit against the federal government, which may further impact her public opinion and reelection prospects.
Yu Jinshan mentioned that during Governor Hochul’s initial announcement of the congestion pricing plan, Mayor Eric Adams of New York City was notably absent, indicating a significant political discord. “The mayor is your political ally. If he’s aware that this issue is problematic and doesn’t show up at the announcement of congestion pricing in New York City, then you should realize the situation is not favorable.”