NEW YORK — A revised proposal for a controversial Manhattan toll plan will be unveiled Thursday by Gov. Kathy Hochul, according to four people with knowledge of the announcement.
Hochul, a Democrat, is expected to approve a $9 surcharge for entering parts of Manhattan during rush hours — a reduction from the $15 toll that would take effect this summer, according to two people with direct knowledge who were granted anonymity about the situation.
The $9 toll could also rise in coming years, two people familiar with the talks said.
The governor suspended the toll plan, known as congestion pricing, in June over concerns that the program would hurt Democratic candidates in crucial House races.
But now that the elections are over, Hochul is moving forward with an alternative congestion pricing program. Toll revenue is expected to raise $15 billion in bonds for the Metropolitan Transportation Authority and shore up the New York City region’s creaking public transit infrastructure.
Hochul is walking a political tightrope with the announcement to bring back the tolls as restive voters remain concerned about pocketbook issues such as the cost of living.
A July Siena College poll showed voters largely approved of her decision to pause the plan. And Hochul, who remains unpopular with voters statewide, has insisted that the $15 toll was too expensive for working New Yorkers to pay when traveling to the city’s business district.
But the plan has drawn support from influential New York City business interests and left-wing transit activists — two crucial constituencies for Hochul when she is expected to run for re-election in 2026.
A spokesperson for Hochul’s office declined to comment for this story and instead referred POLITICO to comments the governor made Wednesday when she said an announcement on congestion pricing is expected soon.
Still, a toll revival will also be a buzzword in Washington.
New York House Republicans strongly oppose congestion pricing and have urged President-elect Donald Trump to revoke federal approval for the program.
Hochul’s new $9 toll target is intended to avoid another lengthy federal environmental review. POLITICO reported last week that the governor’s office had asked the U.S. Department of Transportation to determine whether the lower surcharge would meet federal requirements.
MTA board members expect to be briefed on the plan during a regularly scheduled check-in Thursday at 1 p.m., ahead of next Wednesday’s formal board meeting.
The governor’s announcement will come the day before she was expected to respond to legal challenges to her “pause” unveiled this summer by environmental groups, mass transit advocates and City Comptroller Brad Lander.
