NYC Congestion Pricing Killed, Now What?
With Gov. Hochul’s postponement of congestion pricing, fleet operators won’t have to pay to enter Manhattan’s Central Business District — for now. Policy expert Matt Daus connects with Automotive Fleet on what’s next.

Would congestion pricing make it easier for fleet trucks to get around, or just increase expenses for operators?
Photo: Chris Brown
On June 5, New York Gov. Kathy Hochul directed the Metropolitan Transportation Authority (MTA) to postpone implementing congestion pricing in New York City indefinitely.
The MTA planned to implement congestion pricing on June 30, 2024. Under the planned program, most vehicles would have been charged to enter Manhattan below 60th Street (the Central Business District, or CBD).
The fees in the plan are substantial: Personal vehicles and small commercial vehicles would have been charged up to $15 once per day. Small trucks and charter buses would have been charged up to $24 for each entry and larger trucks and tour buses would have been charged up to $36 for each entry. Yellow taxis, green taxis, and black cars licensed by the New York City TLC would have been charged $1.25 per ride to, from, and within the CBD, while Uber and Lyft passengers would have been charged $2.50 per ride.
Transit and commuter buses, commuter vans licensed by the TLC, and school buses contracted by the NYC Department of Education, would have been exempt.
The benefits would be substantial too, though not as easy to measure, at least initially: The goal of congestion pricing plans is to get more vehicles off the road, reduce carbon emissions, improve public transit, and make navigating the city easier for those living and working there.
New York follows congestion pricing plans in other parts of the world, such as London, Stockholm, Milan, and Singapore. In the U.S., Seattle, San Francisco, Los Angeles, and Portland, Oregon have analyzed similar schemes, though no plans are eminent in those cities.
Why Did Hochul Kill Congestion Pricing?
As the reason for the postponement, Gov. Hochul cited that New York City and its inhabitants have not recovered economically from the pandemic. Hochul said she does not want to impose an additional financial burden on working-class New Yorkers and reaffirmed her commitment to improving New York’s transportation infrastructure.
Another potential reason for halting the plan is that Democrats are being challenged in House races in New York City suburbs where Republicans have used congestion pricing as a political talking point.
Congestion pricing is also facing lawsuits from the State of New Jersey, Fort Lee, NJ, and groups from New York City including city residents, local politicians, the United Federation of Teachers, Rockland County in the Hudson Valley, the Town of Hempstead in Long Island, and the Trucking Association of New York.
These lawsuits claim that congestion pricing would unfairly burden communities where congestion might worsen, would unfairly burden those who must drive into Manhattan with an extra toll, or unfairly impact industries like trucking.
Congestion pricing revenue was meant to finance $15 billion in capital funding to improve the City’s transit system through subway extensions, station accessibility improvements, new subway car purchases, and system-wide modernization. Hochul said the state has set aside funding to backstop the MTA capital plan and is exploring other funding sources.
Advocates of the plan have suggested suing to challenge Hochul’s decision. Others have criticized Hochul for effectively “killing” congestion pricing after all the effort advocates and agencies have poured into the program’s rollout. Advocates are also questioning whether Gov. Hochul’s action is even legal and whether she has the power to override tolls passed by the legislature in 2019.
Future of NYC Congestion Pricing
Despite the current delay, it is possible that congestion pricing will be implemented once political pressures have subsided after the November 2024 election, but the timing would have been speculation in light of Gov. Hochul’s statement.

New York Governor Kathy Hochul poses with former NYC Taxi & Limousine Commission TLC Commissioner and International Association of Transportation Regulators (IATR) President Matt Daus.
Former NYC Taxi & Limousine Commission TLC Commissioner and International Association of Transportation Regulators (IATR) President Matt Daus has been involved in the congestion pricing movement since its inception.
Daus shared with Automotive Fleet some thoughts on how the policy can be potentially revised to see its enactment:
It is my hope that Governor Hochul hitting the congestion pricing pause button allows for the opportunity to retool the policy when it is actually implemented, to make it less about a monetary goal and more about actually reducing pollution and mitigating vehicle traffic congestion in Manhattan next time around.
The legislature should consider removing the $1 billion annual money goal, and instead put in place metrics or targets to reduce pollution. Whatever revenue is associated with that or would be an added benefit, as long as it is used wisely.
Exemptions should be put in place to support sustainable mobility policies — such as shared rides, carsharing, taxis, for-hire vehicles (TNCs), and electric vehicles.
Also, all of the money collected from the TLC-regulated industries should be put into a lockbox to subsidize first- and last-mile services and to make public paratransit on demand and free for people with disabilities.
The IATR has long said in its congestion mitigation principles that congestion pricing alone cannot solve this problem, and must be synced with other clean air policies. Let’s return to the drawing board and see how we can do this better.
More Operations

How to Manage Conflict for Your Fleet Operations
Conflict management is becoming a core leadership skill. Here are five strategies fleet leaders should know.
Read More →
Turning Connected Vehicle Data Into Decisions That Matter
Fleet leaders have more data than ever, but turning that data into clear, actionable decisions remains a challenge. This white paper shows how leading organizations are using connected vehicle data to improve safety, reduce costs, and optimize fleet performance. Learn how to turn insight into action across your fleet.
Read More →
Cameras, Safety and Insurance: From Reactive Claims to Real-time Prevention
Commercial auto remains one of the most challenging and costly lines of coverage for fleet operators and insurers alike. Learn more about how to effectively address these issues from Onur Aksan, Enterprise Business Development Executive, Geotab.
Read More →Are You Tracking Your Fleet's True Total Cost of Ownership?
Bobit Business Media surveyed 190 fleet professionals and found that while most fleets are tracking costs, fragmented systems and data gaps are keeping true TCO visibility out of reach. With rising pressure to control spend in an increasingly volatile environment, the gap between what fleets think they know and what the data actually shows is wider than you might expect. See how your peers are managing costs today and where the industry still has room to improve.
Read More →
Turn Fleet Data Into Smarter Decisions
Fleet leaders have access to more operational data than ever, but disconnected systems and unclear metrics often slow decision-making instead of improving it. This article outlines five practical steps fleets can take to transform fragmented data into actionable insights that improve planning, safety, utilization, and long-term performance.
Read More →
Hybrids: Electrification Without the Challenges
For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.
Read More →
How NOV Uses Telematics to Improve Fleet Safety Across 160 Locations
James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.
Read More →
Fleet Meets: Steven Santostasi
This edition of the Fleet Meets series features Steven Santostasi, the current TSP channel manager for Ford Pro.
Read More →
Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools
Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.
Read More →Soap Box Derby Challenge: Assembling the Crew
Meet Gabriel, Matthew, and Angel — the team helping bring this soap box derby build to life.
Read More →
