Congestion Pricing has seemed like a forgone conclusion for a long time now, and as 2023 was coming to a close, NYC took a couple giant steps closer to making it a reality. In December, the Metropolitan Transit Agency (MTA) board voted overwhelmingly to approve guidelines provided by the Traffic Mobility Review Board (TMRB) and public hearing dates were announced for the months ahead. It appears the implementation date will likely be pushed back to June, from what was previously reported as a “late-April” launch, but the city is moving full steam ahead.
The TMRB’s guidelines included costs, when certain prices will be in effect, who gets credits and more. While the final fee structure will likely mirror (or at least very closely resemble) what the MTA already approved, there are several lawsuits that could cause further delays, and plenty of groups are still seeking exemptions.
You certainly can’t blame people for trying. Although Gov. Hochul bragged that the approved proposal “heeds my call to lower the toll rate by nearly 35% from the maximum rate originally considered,” the program is expected to generate literally billions of dollars – and even the lower rates seem staggeringly high for plenty of people entering Manhattan.
Currently, the guideline’s only exemptions are specialized government vehicles (like snowplows) and emergency vehicles, but school buses filled with children seem like an obvious addition – although the city must somehow figure out how to determine if it’s actually school-bound or providing some other type of transportation service.
Not surprisingly, the yellow taxi industry is continuing to push for an exemption. According to the New York Taxi Workers Alliance, “The meter starts at $3, and then there’s 50 cent MTA, $2.50 MTA, and now $1.25 MTA, and then $1 toward something called an accessibility fund. Out of $8.25 at the starting rate on the meter, the majority of that is going to the MTA.”
I don’t think I’m the only one who was frustrated to read that quote in the same week the Daily Newsreported the MTA lost $690 MILLION on subway fare evasions in 2022 alone, and only recently decided to upgrade their equipment to discourage turnstile jumpers. The MTA also loses an estimated 5% of its cashless toll plaza revenue due to toll evaders each year. To put it bluntly, it feels like this abysmally-run agency is trying to stop hemorrhaging money by syphoning blood from hard-working TLC-licensed drivers and pouring it into their leaky system.
Currently, the recommended Congestion toll for taxis is a $1.25 per-trip surcharge, paid for by the passenger. It’s a world better than what was originally discussed, but it’s kind of like when someone tells you your house burned down, just so you’ll be relieved to hear the real news… that only your car was demolished.
Taxi industry advocates make a compelling case. In addition to all the money already being paid to the MTA, according to NY1, yellow taxi rides are still down 50% from pre-pandemic levels, and only 60% of taxis are in use. Even those advocating for the Congestion fee admit it will very likely make things worse for TLC-licensed drivers, at least in the short term.
Honestly, I think you could make a similar case for drivers in the traditional segments of the for-hire vehicle (FHV) industry (liveries and black cars), who are currently set to pay the same Congestion fee as taxis: $1.25 per trip. The city has rightly provided a tremendous amount of financial assistance to yellow taxi medallion owners (approaching half a billion dollars) – but traditional FHV drivers have also faced devastating circumstances over the past decade, and could use a boost, rather than more bad news.
For their part, advocates for drivers who provide work for companies like Uber and Lyft are expecting a $2.50 per-trip surcharge, and they’re not fighting it – although Brendan Sexton, president of the Independent Drivers Guild says excluding taxis altogether seems unfair: “We’re glad that the tolls are not primarily on the backs of for-hire vehicle drivers, but all for-hire vehicles and yellow taxis should have parity. There is no reason to give a break to the fat cat private equity funds that own 80% of the yellow taxi medallions, but not the black and brown immigrant rideshare drivers who are struggling to get by. Black car trips are already taxed much more heavily than yellow taxis, which don’t even pay sales tax.”
Mayor Adams is among those who want to exempt yellow cabs, but MTA Chair and CEO Janno Lieber pointed out that any change to the proposed fee structure could further delay implementation. We also know that if one group gets removed, the fees will likely have to go up for everyone else, which could be highly problematic.
Meanwhile, lawsuits and threats of more lawsuits are pouring in from the yellow taxi industry, New Jersey, Staten Island and nearby NY counties – even as the MTA continues to push forward. Now that the initial plan was agreed upon, there will be a 60-day response period, which will include four public hearings. Any possible tweaks could feasibly be added before what would be a “final” vote in April (meaning the earliest the tolls would likely go into effect would be late June).
Drivers will have the chance to weigh in on the MTA’s congestion pricing plan during four hybrid (virtual and in-person) hearings:
- Thursday, Feb. 29, at 6pm
- Friday, March 1, at 10am
- Monday, March 4, at 10am
- Monday, March 4, at 6pm
The hearings will be held on the 20th floor of 2 Broadway in Manhattan. There will also be a Zoom option. Speakers must register in advance at https://new.mta.info/agency/bridges-and-tunnels/cbd-tolling-hearing or by calling 646-252-6777. Registration opens one week before the start time of each hearing and then closes 30 minutes after the hearing starts, which will be streamed on the MTA website at https://new.mta.info/project/CBDTP.
The public can also send a written or audio comment through one of these methods:
- Online: https://contact.mta.info/s/forms/CBDTP
- Email: feedback@mtabt.org
- Mail: CBD Tolling Program, 2 Broadway, 23rd Floor, New York, NY 10004
- Phone: 646-252-7440
- Fax: (212) 504-3148 with Attention to CBDTP Team.
It’s not easy to find a bright side to this mess, but the TRMB claims that implementing their congestion pricing plan should reduce the number of vehicles entering the area by 17% – equating to 153,000 fewer cars.
“Some traffic is great, but there’s a point at which excess congestion becomes an expense,” noted the TMRB’s Kathy Wylde. “Excess traffic congestion is costing the NYC region over $20 billion a year.”
According to the private analytics company Inrix, the average driver in New York City lost 117 hours sitting in traffic in 2021 – equating to a loss of about $2,000 and nearly five days of their lives. And that’s the average driver. It’s exponentially worse for TLC-licensed drivers.
Yes, I would like to see yellow taxi and traditional FHV drivers get an exemption, but it’s unfortunately not looking good. I encourage anyone who has a legitimate gripe or useful insight to speak up at one of the upcoming MTA hearings. You never know what will move the needle, and I wouldn’t give up yet. But in the meantime, you might want to buckle up and prepare for the worst. You have about six months, at least according to most published reports.
I genuinely hope Congestion Pricing fees aren’t as devastating to the various segments of NYC’s TLC-regulated industries as some fear, and wish all of you a Happy, Healthy and More Prosperous New Year!
