Overview

• The congestion pricing program was expected to generate $1 billion annually for the MTA, supporting $15 billion in capital investments.
• Governor Hochul's decision is seen as a political move to avoid backlash from suburban voters ahead of upcoming elections.
• The MTA now faces a $15 billion budget shortfall, jeopardizing key projects like the Second Avenue Subway extension and new subway elevators.
• State lawmakers are divided on Hochul's proposed payroll tax hike on NYC businesses to fill the funding gap, with no clear alternative in sight.
• The sudden reversal has caused confusion and frustration within the MTA, with staff and board members expressing dismay over the lack of a backup plan.