By David Shepardson and Jonathan Allen
(Reuters) – A New York transit agency voted on Wednesday to indefinitely halt congestion pricing in Manhattan that was set to start on June 30 after the state’s governor directed the action.
The Metropolitan Transportation Authority voted to halt the program and is now considering sweeping cuts to capital projects.
New York State Comptroller Thomas DiNapoli said in a report on Tuesday that an estimated $17 billion will need to be removed from the current $55.4 billion transit capital plan to address the loss of congestion pricing revenue.
The MTA has already canceled contracts and halted work on one key subway expansion project and has said it could put federal grant funding at risk.
Before voting, MTA board members were told that $16.5 billion in capital projects would have to be deferred, including major expansion projects such as extending the Second Avenue Subway, and upgrading aging signal systems and train cars.
Governor Kathy Hochul cited high inflation and a desire to prevent commuters or tourists from opting not to visit because of the additional charge in her decision to halt implementation.
New York City’s congestion pricing program, the first of its kind in the U.S., would have charged a toll of $15 during daytime hours for vehicles driving in Manhattan south of 60th Street. London implemented a similar charge in 2003.
MTA has said the charge would cut traffic by 17%, improve air quality and increase mass transit use by 1% to 2%, as well as generating $1 billion to $1.5 billion a year and supporting $15 billion in debt financing for mass transit improvement.
In 2019, state lawmakers approved the plan to help fund improvements in mass transit using tolls to manage New York City’s traffic, the most congested of any U.S. city.
Congestion pricing had been projected to start in 2021 but the federal government under President Donald Trump took no action.
New York says more than 900,000 vehicles enter the Manhattan Central Business District daily, which reduces travel speeds to
around 7 miles per hour on average.
(Reporting by David Shepardson in Washington and Jonathan Allen in New York; Editing by Bill Berkrot)
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