On June 5th, with two days left in the legislative session, Governor Hochul announced a “pause” on congestion pricing set to take effect in New York on June 30th. Under the plan, passenger vehicles would be charged a $15 toll when entering Manhattan below 60th Street during peak weekday hours. The program was expected to bring $1 billion per year to the MTA to make upgrades to the system’s infrastructure and address budget shortfalls. After the announcement, the Governor’s office pushed MTA funding alternatives to close the funding gap, including an increase in the MTA payroll tax.

While NFIB supports the delayed implementation of congestion pricing, NFIB came out in strong opposition to increasing the payroll tax and urged the Legislature to reject it in the final days of session. There was limited support in the Senate and Assembly for a payroll tax increase, and both houses adjourned without filling the MTA’s funding hole. The MTA is currently facing numerous lawsuits on the congestion pricing program, and the program’s “pause” could lead to lawsuits from the program’s proponents. The Legislature may return this summer or fall to address outstanding MTA needs.