Congestion pricing in NYC will disproportionately impact non-drivers in New York

Concerns are rising among commuters in the New York metropolitan area as the looming $15 charge to drive into Manhattan below 60th Street, known as the Congestion Pricing Zone or CPZ, has sparked discussions. Surprisingly, individuals who don’t drive or own a car may end up bearing the brunt of these costs.

The potential consequences of the congestion pricing plan have not been widely discussed or considered.

Many residents within the CPZ live in residential apartment buildings with parking garages managed by parking companies. These companies pay substantial rents, often in the hundreds of thousands of dollars, which help cover building operating costs.

If congestion pricing achieves its goal of reducing private vehicle commutes into the CPZ, many garage operators may decide to terminate their leases.

As a result, the buildings, which are often home to middle-income New Yorkers and seniors on fixed incomes, will be left to cover the financial gap through increased rents or maintenance fees.

This is just one of the many unintended repercussions of congestion pricing.

Workers in many buildings, such as porters, maintenance staff, and security personnel, who have early or late shifts may find public transit unsafe or unavailable, especially if they reside in areas with poor transportation access.

Some individuals may have no option but to drive into the zone using private vehicles, resulting in increased costs for residents to maintain competitive wages for retaining staff.

Considering that a large portion of CPZ residents are middle-income or retired individuals, congestion pricing could place a significant financial burden on them, potentially forcing some to relocate.

Furthermore, zone residents and business owners may need to offer higher wages to cover additional commuting costs, attracting and retaining employees in various sectors such as caregiving, maintenance, restaurants, and hotels, especially those with early shifts or residing in transit deserts.

Essential workers like police officers, firefighters, healthcare workers, and teachers will also feel the impact of congestion pricing.

Unions, including the United Federation of Teachers, have taken legal action to prevent the MTA from implementing the fee due to its potential impact on their members.

Besides affecting businesses, congestion pricing could have a substantial financial effect on New York’s art, theater, and cultural institutions, as 46% of them are located within the CPZ, according to the state Comptroller. These institutions contribute significantly to the economy and provide numerous well-paying jobs.

While proponents of congestion pricing often point to London as a successful example, it’s worth noting that London had to reduce its aggressive congestion pricing scheme after facing public backlash that harmed the local economy.

The MTA plans to charge a $15 toll from 5:00 AM to 9:00 PM on weekdays and 9:00 AM to 9:00 PM on weekends, a schedule that differs from London’s restricted hours.

Adopting a schedule similar to London’s may offer some relief to Broadway theaters, restaurants, shopping centers, and tourist attractions, as well as benefiting early- and late-shift workers.

Eliminating the tax altogether would be a more favorable option.

The MTA should focus on cost-saving measures, enforcing fare collections (farebeating currently costs around $700 million annually), reconsidering grandiose capital projects, and prioritizing incremental improvements in safety and service.

However, it’s unlikely that the MTA will change its course without court intervention.

In a recent congestion pricing referendum in London, 66% of residents voted against its expansion.

London’s Mayor Sadiq Khan even attributed the Labour Party’s expansion proposal to their defeat in the 2023 election.

New York should heed the lessons learned from London’s experience. 

Maria Danzilo is the executive director of One City Rising, Inc. Susan Lee is a board member of One City Rising and president of New Yorkers Against Congestion Pricing Tax, which has filed a federal suit regarding congestion pricing.