Governor Kathy Hochul 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, Hochul’s plan features a 40% reduction in all tolls for vehicles entering the City’s Central Business District (CBD), saving commuters up to $1,500 per year.

The 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. Hochul committed to funding the proposed 2025-2029 MTA capital plan that was approved by the MTA board in September.

“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.”

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.

Under this plan, congestion pricing will be ready for implementation at midnight on Sunday, January 5.

Congestion Pricing Plan

Under the announced plan, the toll structure for entering New York City’s CBD would initially include Daytime E-ZPass tolls at $9 per day for passenger vehicles, $4.50 per day for Motorcycles, $14.40 for small trucks and non-commuter buses, and $21.60 for Large Trucks and sightseeing buses.

Tunnel crossing credits will be reduced by 40% of the original plan, and nighttime discounts will be set at 75% of daytime tolls.

Commuters who drive into the CBD fie days per week will save approximately $1,500 per year in tolls.

Some eligible drivers will be able to 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. This includes supporting current capital program initiatives including the Second Ave Subway Phase 2 extension to East Harlem, modern signal systems on segments of the A/C and B/D/F/M lines, accessibility improvements, and 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% reduction in vehicle miles traveled and a 10% reduction in the number of vehicles entering Manhattan’s CBD.

Pursuant to Governor Hochul’s plan, MTA will not raise the initial tolls beyond 60% from 2025 to 2027, and 80% FROM 2028 TO 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

Governor Hochul’s congestion pricing plan commits to funding the low-income discount and every place-based and regional mitigation that has already been committed to. These include: 

• $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

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 include the expansion of the joint MTA-NYW Automated Camera Enforcement program, expanded statutory authorization of the use of weigh-in-motion technology, and raising the threshold value for authorized removal of abandoned derelict vehicles.

Governor Hochul also believes it is necessary to expand MTA bus service in New York City to increase and improve alternatives to driving. The Governor is proposing that the MTA increase frequency, make running time adjustments, and deliver other enhancements on at least 23 bus routes citywide.

Funding the Proposed 2025-2029 MTA Capital Plan

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 Rial 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.

Governor Hochul highlighted that potential contributions from federal, state, city, and MTA sources are expected to be sufficient to fund approximately half of the plan. She also gave 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.

“Excess congestion costs our metropolitan region more than $20 billion a year as movement of goods and people is slowed by traffic,” Partnership for New York City President & CEO Kathryn Wylde said. “The Governor’s decision to allow congestion pricing to proceed, even with a reduced toll, will benefit business and consumers across the region and is a critical component for financing a better, safer and more reliable transit system.”