Is New York’s Economy Too Fragile for Congestion Pricing? Many Say No.

In her abrupt decision on Wednesday to halt New York City’s congestion pricing plan, Gov. Kathy Hochul made a familiar argument: The city’s economic recovery from the coronavirus pandemic was still too “delicate.”

It’s true that by several measures, the recovery is far from complete. But experts who study the city’s economy are adamant that congestion pricing — which would have tolled drivers entering Manhattan south of 60th Street in order to reduce traffic and pollution and raise much-needed funds for public transit — could have only helped it bounce back.

Governor Hochul said she didn’t want to pile on another cost for New Yorkers struggling to make ends meet or discourage commuters from visiting Manhattan, where their absence during the pandemic emptied out office buildings and hurt businesses.

But many economists, business owners and civic leaders say the city’s fiscal health is a more complicated matter than the governor’s reasoning would indicate.

“She’s citing a problem, but it’s not one made worse by congestion pricing,” said James Parrott, the director of economic and fiscal policy at the Center for New York City Affairs at the New School.

The plan was expected to collect about $1 billion a year to help pay for crucial improvements to the city’s aging subway, bus and commuter rail systems. Without those funds, a failing transit system could be the worst economic blight of all, critics said.