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Hochul was ‘looking for cover’ on congestion pricing, insiders say

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Long before Gov. Kathy Hochul stunned New York on Wednesday by shelving the congestion pricing program at the last minute, she had been concerned about the political fallout from implementing the tolls.

“The governor’s been very worried about this for months,” said one person who has spoken with Hochul directly. “She was looking for cover.”

Few political insiders put full stock in the stated reason Hochul offered on Wednesday for delaying the toll indefinitely: that she wanted to avoid imposing new costs on working-class people or jeopardize Midtown Manhattan’s pandemic recovery. Instead, most pointed to recent polls that showed nearly two-thirds of New York voters oppose congestion pricing, posing a potential hazard for the five Democrats running in swing-district U.S. House races in suburbs near the city.

Hochul spoke in recent days with White House officials, including President Joe Biden, about postponing the plan to charge most drivers $15 to enter Manhattan below 60th Street, according to a federal government official who requested anonymity to discuss the private conversations. But state lawmakers, who passed the law that created congestion pricing, were blindsided by the news.

“I’m heartsick,” said Manhattan state Sen. Brad Hoylman-Sigal, who supports the tolls to ease traffic and fund critical transit work. “It seems like a decade lost, not to mention the enormous cost to public health, mass transit, a sustainable economy and the environment.”

House minority leader Hakeem Jeffries of Brooklyn, whose speakership rides on the swing House races, denied playing any role in Hochul’s abrupt reversal. A Jeffries spokesman, Andy Eichar, said that Jeffries “has maintained neutrality” on congestion pricing — but also offered ready praise for Hochul’s choice.

“To the extent immediate implementation of congestion pricing is being reconsidered, Leader Jeffries supports a temporary pause of limited duration to better understand the financial impact on working-class New Yorkers who have confronted a challenging inflationary environment as a result of the pandemic,” Eichar said.

Still, in the absence of immediate evidence, some local officials turned their suspicions toward Washington. William Barclay, the state Assembly’s Republican leader, praised Hochul’s decision in a statement — but called it “a calculated maneuver to avoid a political disaster.”

“This sudden heel-turn is because the political ramifications of congestion pricing would have hurt Democrats in upcoming congressional races,” Barclay said.

Although Hochul has publicly praised congestion pricing for years, she has maintained a private distaste for some of its ramifications. Rumors that Hochul might try to delay the implementation were flying during the waning days of state budget negotiations this spring, one lawmaker said.

Huge questions remained unanswered by Wednesday afternoon — starting with whether state lawmakers have any interest in Hochul’s new proposal to raise taxes on New York City businesses to cover the $1 billion annual hole that was supposed to be filled by congestion pricing revenue. Legislative leaders have not publicly addressed the plan, which would need to pass before this year’s Albany session ends on Thursday.

Local officials continued to puzzle over why Hochul waited until now to act — 25 days before the tolls were supposed to take effect. Hochul offered no clarity about that timing during her pre-recorded speech, pointing only to long-running issues like inflation and the Covid-19 pandemic.

It remains to be seen whether state Democrats will see a boost in November by punting the unpopular program. But Hochul’s decision drew unusually strong criticism from establishment groups that typically ally with her, like the Regional Plan Association, the Partnership for New York City and the New York Building Congress.

“We are living in a bad episode of ‘The Twilight Zone,’ ” said Carlo Scissura, the NYBC’s president and CEO.

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Nick Garber , 2024-06-05 23:10:48

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