MTA Must Defer $16.5B in Spending After Congestion Pricing Indefinitely Postponed
The MTA board voted 10-to-1 to pause congestion pricing, following Gov. Hochul’s decision earlier this month to put it on hold “indefintely.” That means, said the MTA, that up to $16.5 billion in spending will not happen as the $1 billion in toll revenue evaporates.
| 28 Jun 2024 | 01:17
The MTA reluctantly agreed it had to shelve some big projects now that the Gov. Kathy Hochul has postponed indefinitely the start of tolls from congestion pricing that were expeted to bring in $1 billion a year. (
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An MTA board meeting on Wednesday, June 26 voted 10-to-1 to indefinitely pause the execution of congestion pricing tolls. The tolls would have charged most drivers $15 to enter Manhattan below 60th St. in an effort to reduce traffic and generate funds for public transportation.
The vote follows Governor Kathy Hochul’s sudden decision on June 5 to postpone the implementation of congestion pricing, though that doesn’t mean members of the MTA board agree with her. Wednesday’s vote more so cements the notion that congestion pricing cannot be effectuated without Hochul’s consent.
“The fact is the MTA, it’s just a reality, cannot start implementing congestion pricing without the New York State DOT sign off,” said MTA Chief Executive Janno Lieber during the vote.
Many MTA members are unhappy with Hochul’s decision to stop congestion pricing, as it generates revenue for the MTA to execute repairs, improvements, and renovations to public transit throughout the city.
An estimated $16.5 billion worth of construction projects were scheduled to head underway, but with the newfound lack of revenue from the absence of congestion pricing, the MTA will not have that funding, and thus cannot complete the projects. This budget gap poses a threat to the advancement of the city’s public transit system.
”The MTA will be forced to put off badly needed investment in expansion and improvements in the system,” said NYS Comptroller Thomas DiNapoli in a report issued Tuesday.
”The MTA’s decision should ensure basic maintenance of the system–safety, reliability and frequency–until it identifies realistic and sustainable replacement revenue,” he stated.
Among the construction projects halted was an extension of the Second Avenue subway to Harlem, as well as new train cars, better signaling programs, and accommodations made to stations for those with disabilities. It is unclear how many of these projects will continue to fruition given the MTA’s newly limited budget, but stop-work orders have already been distributed to certain projects.
For now, the MTA will prioritize essential maintenance and upgrades that keep the system afloat and properly functioning, according to MTA Deputy Chief Development Officer Tim Mulligan.
In a statement from Hochul on June 26 following the board meeting, the governor said:
“In the coming months, my team will work with the MTA to further develop a comprehensive approach to fund both the remaining projects in the 2020-2024 capital plan and the new capital plan. And I will continue to work in partnership with the State Legislature to implement comprehensive solutions and ensure appropriate funding sources in next year’s budget.”
Hochul insisted that, despite the $16.5 billion in revenue disappearing from the budget, the MTA will be financially supported and accounted for, and New Yorkers won’t notice a change in their daily commute to work.
Straus News reached out to representatives of the MTA for a comment but didn’t hear back before presstime although the resolution seemed to suggest that congestion pricing in some form will be instituted in the future.