A little more than five months after the state of New York indefinitely paused a planned congestion pricing program intended to fund New York City's transit agency construction projects, Gov. Kathy Hochul is planning to relaunch the program with a much lower toll price.

Paused just weeks before they were to be implemented, the tolls would have been the first of their kind in the nation.

The rebooted plan includes a $9 base toll for passenger cars, 40% less than the $15 in the plan previously approved by the MTA. The base toll could eventually be increased over time. MTA's board could vote on the plan as soon as Nov. 20 and the program—which also needs federal approval—could launch as soon as midnight on Dec. 29.

The rush is needed so the program starts before President-elect Donald J. Trump—who opposes the program—moves back into the White House.  

The pause left in question about $15 billion in toll revenue that had been expected to fund transit projects such as the Metropolitan Transportation Authority (MTA) second contract of the $7.7-billion Second Avenue subway extension. It also severely impacted the overall agency capital plan, forcing it to consider some harsh cuts for a system that was already recovering from pandemic-era drop in revenue.

“New York is moving forward with congestion pricing and a plan that strengthens public transit while putting commuters first,” Hochul said in a Nov. 14 tweet on X.

Without giving details, Hochul claimed the revised plan covers funds to modernize signals, finish the Second Avenue subway extension and implement electric buses and new elevators. She also said it would pay for improvements on two commuter rail lines while providing less gridlock and cleaner air.

In a letter asking Trump to kill the program, five House Republicans representing New York called the plan an “oppressive taxation regime.” Signed by Representatives Nicole Malliotakis, Mike Lawler, Andrew Garbarino, Nick LaLota and Anthony D’Esposito, the letter says, “We request your commitment to ending this absurd congestion- pricing cash grab once and for all.”

New Jersey Gov. Phil Murphy also opposes the plan, saying in a statement that “New Jersey has never been meaningfully consulted on the design of this plan, either in its initial iteration or the version that was announced today.”

Murphy also said the plan also negatively impacts drivers "experiencing severe economic strains and still feeling the effects of inflation.” 

Hochul agreed with that sentiment when she paused the program, saying implementing it at that time “risks too many unintended consequences for New Yorkers” facing increased costs of living. Hochul said adding another cost could prevent more workers from returning to offices in the city.

The new plan, however, gives drivers who earn less than $50,000 a year a 50% discount on every toll after the 10th toll each month. Drivers traveling after 9 p.m. will also receive discounts.

The original plan that was set to take effect June 30 would have added tolls of $15 for most cars during weekdays—and as high as $36 for certain trucks—on local streets below 60th Street in Manhattan. 

The state already spent an estimated $1 billion on the program, including installing equipment necessary to automatically record the cashless tolls.

Carlo A. Scissura, president and CEO of the New York Building Congress “happily” welcomes the new plan, saying there’s no other funding mechanism that can match congestion pricing.

"We desperately need investment in transit, and sustained bondable funding is the only way we will accomplish the twin goals of critical state-of-good-repair work and bringing about the transformative projects of the future," Scissura said in a statement.

Tom Wright, president and CEO of the Regional Plan Association, also welcomes implementation of congestion pricing.

“This historic step is vital for New York and will support our regional economy, a healthy transit system, and improved air quality,” he said in a statement. “We look forward to working with Gov. Hochul, the State Legislature and all stakeholders to advance this plan. Congestion pricing is a policy whose time has come.”

The text of this article was updated Nov. 14, 2024 with new information.