New Yorker lawmakers ended the legislative session without plugging the MTA funding gap caused by Gov. Kathy Hochul’s abrupt cancellation of the June 30 congestion pricing launch.
The failure to act now leaves a billion dollar hole in the transit agency’s budget and further questions about how New York plans to pay for long-awaited updates to the subway system.
The lack of funding “has serious implications” for the MTA Capital Program, leadership warned late Friday.
“Until there is a commitment for funding the balance of the 2020-2024 Capital Program, the MTA will need to reorganize the Program to prioritize the most basic and urgent needs,” MTA Chief Financial Officer Kevin Willens and MTA General Counsel Paige Graves said in a joint statement.
That means improvement projects like electric buses, accessible subway stations and new signals will likely be put on hold, they added.
“New York State law places an obligation on MTA to implement a congestion pricing program, and the agency stands ready to do so. But under applicable federal law and regulation, the MTA cannot act until the Central Business District Tolling Program is approved by New York State, New York City and the federal government – and with the announcement of the pause, we no longer have the State’s consent,” the MTA leaders explained in their statement.
Hochul addressed the press for the first time Friday night, two days after dropping the bombshell announcement that congestion pricing was going to be put on an indefinite pause.
“The closer we got to the June 30th implementation date, I heard from more and more anxious New Yorkers that this would be a real hardship for them,” she said.
Lawmakers spent those two days scrambling to react and weigh alternatives to fill the billions needed to fund the MTA program. A payroll tax didn’t get enough traction and the session ended overnight without a clear plan.
At her press conference, Hochul didn’t give a timeline or funding alternative. She did insist that congestion pricing was only “on pause” and New Yorkers would seemingly see its implementation down the road.
Plenty of critics accused the governor of postponing the fee because of the upcoming election. One reporter pressed Hochul on that feedback.
“Governor, I mean this with due respect, but how stupid do you think New Yorkers have to be to believe that this congestion pricing decision wasn’t politically motivated?” the reporter asked.
“I will never think that the voters and constituents in New York are stupid. Those are your words,” she said in response.
While congestion pricing going on hold is good news for drivers, what will also be on hold will be the dozens of improvement projects for things like new signals, track repairs and even Phase 2 of the Second Avenue Subway line. NBC New York’s Melissa Colorado reports.
