Backlash to Hochul's decision to halt congestion pricing delays the end of NY legislative session

The final hours of the 2024 New York legislative session have been dominated by a growing rift between Gov. Kathy Hochul and some top Democratic state lawmakers over the governor’s decision to halt congestion pricing in New York City.

Lawmakers agreed to a measure to reduce plastic packaging by 30% over the next dozen years, and they were prepared to vote on a bill to ban algorithms on children’s social media feeds and prevent big tech companies from collecting kids’ data.

But those items were overshadowed by Hochul’s decision on Wednesday to pause indefinitely the June 30 implementation date of congestion pricing in New York City.

The policy, aimed at reducing gas-powered vehicle emissions and helping to fight climate change, was going to be too expensive for commuters to bear, Hochul said.

“After careful consideration, I have come to the difficult decision that implementing the planned congestion pricing system risks too many unintended consequences for New Yorkers at this time,” she said in a recorded video message Wednesday.

Many Democratic lawmakers on Long Island and in the Hudson Valley praised the governor’s decision. But other progressive-leaning Democrats called it a “betrayal” and predicted that the decision would backfire on Democrats who are facing close races in several congressional elections in suburban districts.

The governor’s announcement angered one of the most powerful Democratic women in the Legislature, Senate Finance Committee Chair Liz Krueger. She represents a district in Manhattan where the toll gantries have already been set up to impose the $15 fee — and where her constituents welcomed the change.

“This is a terrible decision,” Krueger said. “She’s got to reverse herself on this.”

Krueger said the reversal came as a shock, especially after Hochul just last month highlighted New York’s commitment to fighting climate change at a summit held at the Vatican by Pope Francis.

“I don't think this was part of the discussion with the pope,” Krueger said. “That she was going to reverse herself on one of the most important environmental decisions that we were counting on.”

Krueger said she believes there are grounds for a lawsuit against Hochul’s decision, but she could not say who might bring legal action.

Hochul, who has not spoken publicly since Wednesday’s recorded announcement, is also proposing a payroll mobility tax that would be imposed on New York City businesses to make up for the $1 billion a year that congestion pricing was to have brought in to finance MTA public transit improvement projects.

Krueger said there is not enough support among Senate Democrats to approve a new tax on businesses.

Senate Deputy Majority Leader Mike Gianaris also condemned the governor’s decision. He said the Legislature could act to authorize that the $1 billion gap be filled later in an unspecified way. But he said the payroll tax for businesses is dead on arrival.

“I think it’s safe to say the idea of a payroll mobility tax just for New York City is something that we think is a horrible idea,” Gianaris said.

He said with just hours left to go in the session, it’s too late to hash out any type of complicated refinancing bill.

The dispute delayed voting on final bills. As a result, lawmakers are expected to go into the weekend to finish their business before adjourning for the year.