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The Rise and Fall of Congestion Pricing in New York

The Rise and Fall of Congestion Pricing in New York

Released Monday, 10th June 2024
 1 person rated this episode
The Rise and Fall of Congestion Pricing in New York

The Rise and Fall of Congestion Pricing in New York

The Rise and Fall of Congestion Pricing in New York

The Rise and Fall of Congestion Pricing in New York

Monday, 10th June 2024
 1 person rated this episode
Rate Episode

Episode Transcript

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0:00

The limited series Eric starring Emmy

0:02

winner Benedict Cumberbatch now playing only

0:04

on Netflix. Set in 1980s New

0:06

York, this thriller follows the desperate

0:08

search of a father when his

0:10

nine-year-old son disappears. Vincent, the creator

0:12

of a popular children's television show,

0:14

struggles to cope with the loss

0:16

of his son becoming distressed and

0:18

volatile. As Vincent's progressively destructive behavior

0:20

alienates everyone around him, it's Eric,

0:22

a delusion of necessity, who becomes

0:24

his only ally in the pursuit

0:26

to bring his son home. Eric

0:29

is now playing only on Netflix. Daily

0:36

producer Will Reed here in

0:38

New York. It's about 850. I'm

0:41

on my way to meet Michael

0:44

Barbero and oh,

0:47

there he is. Welcome to

0:49

the neighborhood. Thank you. It's

0:51

beautiful here. It is. So

0:54

where are we going? We are going

0:56

to my car. I confess I have a car

0:58

in Brooklyn and we're going to

1:00

use it to commute into Manhattan,

1:02

which is not a thing I normally

1:04

do via car, but

1:06

there's a journalistic rationale, which we will get

1:08

to. You're

1:11

going to sit here. Okay,

1:14

I'm going to open the windows. Just get

1:16

a little

1:19

air in here.

1:22

So Michael, why are we driving into New

1:24

York today? We are driving

1:26

into Manhattan in order to study,

1:30

observe, lay eyes on what was

1:32

supposed to be this first

1:35

in the nation tolling system

1:37

for cars entering a downtown.

1:41

It's an anti-traffic program that says if you

1:44

want to be part of traffic, then you have to pay for

1:46

it. It's been in the works for

1:48

years. So we're just

1:50

going to go basically do a

1:52

dry run through the infrastructure of

1:54

this tolling system known

1:58

as congestion pricing. We're

2:04

now on a ramp taking us off the

2:06

FDR at East 61st Street. So

2:09

we are one block north of the

2:11

congestion pricing zone. So we're gonna go

2:14

straight up. There's the cameras.

2:16

So oh, you see them. We

2:19

are seeing the tolls. And

2:22

in fact, I'm just gonna slow down. And

2:25

there's three in a row. These

2:27

are three feet by four

2:29

feet, four by four, metal

2:32

boxes with lights and glass

2:34

and cameras inside. They're

2:36

kind of in the trees on a big

2:38

metal post. Yeah, I feel like

2:40

we're under the UFO right now. We are under the

2:43

UFO waiting for it to open and something

2:45

to emerge. And this

2:48

is congestion pricing. This is the system. These

2:52

cars behind us are like, what the heck are

2:55

you doing? This is

2:57

journalism, my friends. The

2:59

bus has every right to be mad at us. All

3:03

right, all right, all right. Tough

3:05

city. We are

3:07

now in the congestion pricing zone.

3:11

And the goal is that

3:13

this typically very congested

3:15

neighborhood of Manhattan,

3:18

which you can just let me just look

3:20

at all these cars, right? The idea is

3:22

that you slice some percentage of these cars

3:25

out of the equation. And

3:27

we should say the

3:29

reason why we are stopping in the

3:31

middle of York Avenue and looking at

3:34

this tolling system is

3:36

because we just learned

3:38

that the governor of New York,

3:40

Kathy Hochul, is putting an indefinite

3:43

pause on this system. And

3:45

if that pause turns into what I

3:48

suspect is a forever

3:51

pause on this thing, none

3:53

of these cameras will ever be operational.

3:55

And this system will just

3:58

become a relic. And

4:01

the story of how New

4:03

York got to a point where

4:05

all of these cameras and tools

4:08

and infrastructure were installed and

4:11

now at the very last minute the

4:13

plug is being pulled on the system

4:15

is a

4:18

complicated story that I think is

4:21

worth untangling. Cue

4:23

the theme song. From

4:30

the New York Times, I'm Michael Bobaro. This

4:33

is The Daily. Today,

4:36

the rise and fall

4:38

of congestion pricing in

4:41

New York City. I

4:44

spoke with my colleagues Anna Lay

4:47

and Grace Ashford. It's

5:03

Monday, June 10th. Well,

5:08

Anna, welcome to The Daily. Thank you.

5:11

You cover transportation in New York City

5:13

for the Times. I

5:15

want to start with the question

5:17

of how and why congestion pricing

5:20

was ever going to come to New York

5:22

in the first place. Yeah.

5:24

So for a long time, New York

5:26

City was really wrestling with the problem

5:28

of traffic in Manhattan. It's one of

5:31

the most congested places in the country.

5:34

So for more than 50 years,

5:36

there's been this idea that

5:38

people have talked about charging

5:41

people to drive into this part of

5:43

the city to pay for

5:45

the privilege of getting to reach

5:48

some of the most famous destinations

5:50

and neighborhoods in New York City.

5:53

SoHo, Chelsea, Hell's Kitchen, Wall Street,

5:55

Times Square, the theater district, that

5:57

there should be a fee if

5:59

you're going to bring a car

6:03

into this place that you could

6:05

very easily reach via public transit.

6:08

And there are other big cities

6:10

that have congestion pricing like London

6:12

and Singapore and Stockholm. And

6:14

for people who think that this is a good idea, New York

6:17

just seemed like a really

6:19

good setting to experience with

6:21

it in the United States

6:23

because it's so walkable. We

6:26

have great access to the

6:28

subway. We've got buses. We've

6:30

got commuter rail lines. Right. There's

6:32

alternatives to a car, thus potentially

6:34

an ideal place to ask people to

6:36

get out of their cars. Right. Yeah.

6:38

And so to bring this concept to

6:40

the United States, New

6:43

York City is the place where it's going to happen. It's either

6:45

going to happen here or it's not going to happen anywhere in

6:47

the country. And what exactly is the

6:49

logic of making people pay for the privilege?

6:51

What is it supposed to do? It's

6:54

supposed to discourage you from driving in

6:56

at all. It's supposed to encourage you

6:58

to take mass transit and it serves

7:00

a greater good for people not only

7:03

in their ability to get around, but

7:05

also in having a more enjoyable place

7:07

to live and a cleaner place to

7:10

live. Right. Fewer cars,

7:12

less air pollution. The thinking has

7:14

always been a more pleasant

7:16

city. Exactly. Okay. You said

7:18

this idea has been kind of kicking around. Why

7:20

doesn't it in New York seem to

7:22

go anywhere? Well,

7:24

there are a lot of people who don't want to

7:26

pay. A lot of people

7:28

in boroughs outside of Manhattan, people

7:31

in New Jersey and Connecticut. And so

7:33

there's been a lot of resistance over

7:35

the years and politicians sometimes

7:38

propose it and then just back away

7:40

because it's not popular. Mm hmm. And

7:43

when does that start to change?

7:46

I think 2017 was a big turning point. Chaos

7:51

deep underground, a subway train derailing,

7:54

violently tossing people to the floor.

7:57

Service in the New York City subway

7:59

just gets unbearable. Just weeks

8:01

ago, panicked passengers trapped on another

8:03

broken down subway train, over an

8:05

hour, no air conditioning. There are

8:07

all kinds of delays and service

8:10

disruptions. It's another day, another meltdown on

8:12

the subway. With these breakdowns

8:14

becoming an almost daily occurrence, many

8:16

passengers tell us they've simply had

8:18

enough. Then people are just so

8:20

frustrated they can't get to where they need to

8:22

go. For f's sake, the

8:24

New York Post wrote, fix the subways.

8:27

In New York, it's known as the summer of hell.

8:29

For commuters. Governor Cuomo,

8:31

under pressure to fix the transit

8:33

mess, now making headlines by calling

8:35

congestion pricing an idea whose time

8:38

has come. So the governor

8:40

at the time, Andrew Cuomo, has this

8:42

very clever idea to use

8:44

congestion pricing money to pay

8:46

for the repairs that are needed in the subway.

8:52

Hmm. And I guess we should

8:54

explain to listeners, in New York, the

8:56

subways, which are all in New York City,

8:59

are paid for by the

9:01

state. Right. And lawmakers

9:03

around the state realize, oh, this

9:05

is a way to address

9:08

this nuisance that we've been having to

9:10

deal with for so long that takes

9:12

care of something that they keep putting

9:14

off, sort of, you know, budget cycle

9:17

after budget cycle. Right.

9:20

You're saying around this time, all

9:22

those people in the state government start

9:24

to look at the subway mess and

9:27

see this is something they just don't want to have to keep dealing

9:29

with. And suddenly, congestion pricing,

9:31

which had been something they all look

9:34

to scants at as something that might

9:36

piss off their constituents, suddenly looks

9:39

like not such a bad idea anymore. Exactly.

9:42

Yeah. So at this point, there

9:44

seems to be a really clean solution in

9:47

front of them. So

9:49

once Governor Cuomo and the state legislature starts to

9:51

get a little excited about this

9:53

idea, what is the actual

9:56

operational plan that takes form? The

10:00

idea is to make a zone where the

10:02

tolls are in effect. So in this case,

10:04

the zone is anything south of 60th Street,

10:08

which is a part of Manhattan that

10:10

is just constantly choked with traffic. This

10:13

is, you know, cars, delivery

10:15

vans, Ubers, lifts, ambulances.

10:18

I mean, any type

10:20

of vehicle you can think of is

10:22

there. And this program

10:24

would toll those vehicles for coming into

10:27

the zone or for getting around the

10:29

zone. And those tolls range depending

10:31

on how big the vehicle is and

10:33

what time of day it is. And

10:36

the most expensive would be for big

10:38

trucks. And

10:40

at peak hours when the tolls are most

10:42

expensive, those trucks would pay $36. A

10:46

car like you and I might drive those

10:48

would cost $15. Taxis

10:50

and Ubers and lifts are different. There

10:52

would be a fee that's tacked on

10:55

for the passenger. Taxis

10:57

would pay $1.25

10:59

and Ubers and lifts would

11:01

pay $2.50 per trip within the zone.

11:04

Those passenger fees for getting in a taxi don't sound like a

11:06

ton of money for each person who

11:08

gets into a cab, but the $15 for passenger

11:10

cars and the $36 for a commercial truck, that's

11:12

real money. And

11:17

I'm just doing the math. If you commute it into the

11:19

city even just three days a week in

11:21

a passenger car, that's $45 a week. So

11:25

what was the thinking behind those numbers? Well, they

11:27

don't want you to drive into the zone. That's

11:29

the whole point. Right. So it's

11:31

meant to be high. It's meant to

11:33

contain a kind of sticker shock.

11:36

Exactly. I'm curious because this is about raising money

11:38

for the subways, just how much

11:40

money does this proposed set of tolls

11:43

raise? It's supposed

11:46

to raise a billion dollars annually, which is

11:48

money that can be used for all kinds

11:50

of things within the subway system

11:52

to make it run better. And

11:55

it would mean that the subways would have

11:57

that money forever without

11:59

having to... to go to the

12:01

state and ask for money so

12:03

that they could do these repairs.

12:06

Right. But there are many

12:08

other benefits that advocates for

12:10

the program have pointed to, including

12:13

the fact that it could reduce traffic by 17 percent

12:15

in the zone. It

12:17

would also mean that buses would be able

12:19

to travel more quickly. And New York City

12:21

has the slowest buses in the nation. I

12:24

mean, in some cases, you can walk more

12:26

quickly than if you were to take a

12:28

bus somewhere. Shocking. Yeah. And

12:30

so that would be a huge improvement to

12:33

the transit network. And finally,

12:35

this would save the region billions of

12:37

dollars that it loses to people just

12:39

sitting in traffic all day idling. Because

12:42

if you're sitting in your car idling, you're not working.

12:45

Deliveries aren't being delivered. Right.

12:47

It hurts the economy, is the thinking. Yeah. And

12:50

that's why this plan had a lot

12:52

of support from transit advocates, from business

12:54

community leaders in New York City, and

12:56

from plenty of regular New Yorkers who

12:59

don't own cars. And they rely on

13:01

the subways and the buses to get

13:03

around the city. I'm curious

13:05

who ends up opposing this plan once

13:07

it seems like the state's government is

13:10

starting to get behind it. Well,

13:12

a lot of state lawmakers really like

13:14

the idea of dedicated money for the

13:17

subways that congestion pricing would bring. But

13:20

it's not something that a lot of their constituents

13:22

who live outside of the city care very much

13:24

about. Congestion pricing

13:26

to a lot of people still look like

13:28

a tax on commuting into Manhattan, which

13:31

is kind of this elitist idea that

13:33

people consider to be anti-car. And

13:36

it was a change. It was something unknown.

13:39

And people don't tend to like that. So

13:42

the same forces that had made

13:44

this plan so unpopular for the

13:46

past 50 plus years were still

13:48

very much in full force. You

13:51

could see that in the political realm and

13:53

in the courts, that idea

13:55

really started to build. You

13:58

know, right now there are eight lawsuits. against

14:00

congestion pricing. One of them is from the

14:02

Staten Island Borough President, who says

14:04

his constituents just don't want to pay

14:06

to come into the zone. New Jersey's

14:09

also suing. The teacher's union is suing.

14:11

Really? Yeah. And what's

14:13

the basis, the legal basis, for most of these

14:15

lawsuits? Well, the city's

14:17

teachers are suing because, for example, a

14:20

lot of them drive into Manhattan every

14:22

day to work at the schools, and

14:24

basically, they don't think it's fair to

14:26

pay these tolls. They say it

14:28

would be a financial hardship to them. Others

14:31

are challenging it because they're concerned that they

14:33

could see more pollution or more traffic in

14:35

their neighborhoods if people start driving

14:37

around the zone to get away from the

14:40

tolls. I'm curious what your

14:42

reporting tells us about who would actually

14:44

pay the congestion toll based

14:46

on the history of who actually goes

14:48

into this zone. What

14:50

we've found is that people entering

14:52

the zone are mostly pretty well-off.

14:56

Just to give you a sense of that, a

14:58

data company that we worked with called Replica crunched

15:00

some numbers for us, and what they found was

15:02

that the average income of people that drive into

15:04

the zone is around $181,000. Got

15:08

it. And people who make less than $50,000

15:11

who have to commute into the zone are

15:14

very few. It's 1% of the people

15:16

that go into the zone. So what

15:18

that tells you is that most of the

15:20

people commuting into the zone can

15:23

probably afford this toll. Right. And

15:28

yet there's still clearly a lot of vocal

15:30

opposition as well as legal opposition. Does any

15:32

of this opposition gain

15:34

much traction? Not really.

15:36

I mean, the court cases are

15:38

still pending, but their support at

15:40

the highest level of state government,

15:43

Governor Cuomo, the original champion of

15:45

this plan, ends up resigning. But

15:48

his successor, Kathy Hochul, is

15:50

equally supportive. So

15:53

the momentum for congestion pricing just

15:55

keeps building. Well,

15:58

that controversial congestion pricing... and

16:00

plan for New York City is

16:02

a go today getting the official

16:04

green light from the Metropolitan Transportation

16:06

Authority Board. The MTA board

16:09

took a vote today. Strongly, yes.

16:11

This is a true victory for our city

16:13

and for our region. The motion is approved.

16:17

And before long, there's a date. Starting

16:20

Sunday, June 30th at midnight, drivers that

16:22

need to go south of 60th in

16:24

Manhattan will be slapped with a new

16:26

toll. The system is

16:28

in place. The cameras and the sensors are

16:31

up. Just over nine weeks until the

16:33

MTA's cameras, including these here at 61st

16:35

and 11th, will begin scanning

16:37

license plates. There are

16:39

informational sessions. There's a

16:41

website where people can go and everything is

16:43

ready to go. Right.

16:49

This was fate accompli. This was

16:51

an inevitable and very big change

16:54

in the lives of anyone

16:56

who drives into Manhattan. And

17:00

then the last person anyone could have

17:02

expected to stop this thing

17:04

from moving forward, Governor

17:06

of New York, Kathy Hochul,

17:08

the biggest champion of this

17:11

thing, decides she is

17:13

pulling the plug on congestion pricing.

17:18

After the break, Grace Ashford on

17:20

why the governor turned against

17:22

congestion pricing. We'll

17:25

be right back. The limited

17:28

series, Eric, starring Emmy winner Benedict

17:30

Cumberbatch, now playing only on Netflix.

17:33

Set in 1980s New York, this

17:35

thriller follows the desperate search of

17:37

a father when his nine-year-old son

17:39

disappears. Vincent, the creator of a

17:41

popular children's television show, struggles to

17:43

cope with the loss of his

17:45

son becoming distressed and volatile. As

17:47

Vincent's progressively destructive behavior alienates everyone

17:49

around him, it's Eric, a delusion

17:51

of necessity, who becomes his only

17:53

ally in the pursuit to bring

17:55

his son home. Eric is now

17:57

playing only on Netflix. I

18:00

use the New York Times Games app every single

18:02

day. I love playing connections.

18:04

With connections, I need to twist my brain to

18:07

see the different categories. I think I know this

18:09

connection. Look, Bath is a city in England, Sandwich

18:11

is a city in England, Reading

18:13

is a city in England, and I'm gonna guess

18:15

Derby is a city in England. I started Wordle

18:18

194 days ago, and I haven't missed a day.

18:20

I also just started using Wordlebot to

18:22

check my stats. The New York Times

18:24

Games app has all the games right

18:26

there. I absolutely love Spilling

18:28

Bee. I always have to get

18:31

genius. Sudoku is kind of my version

18:33

of lifting heavy weights at the gym. At this

18:35

point, I'm probably more consistent with doing the crossword

18:37

than brushing my teeth. When I can finish

18:39

a hard puzzle without pins, I feel

18:41

like the smartest person in the world. When

18:43

I have to look up a clue to help

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me, I'm learning something new. It gives me

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joy every single day. Start playing

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in the New York Times Games app. You

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can download it at nytimes.com/games

18:55

app. Subscribe by July 21st

18:57

to get a special offer. Grace,

19:01

you've been covering Governor Hochul's

19:03

decision-making in the

19:05

saga of congestion pricing. And as

19:07

Ana just said, the reason this

19:10

was also surprising was that Governor Hochul

19:12

had been a supporter

19:14

of congestion pricing. So tell

19:17

us how the Governor originally talked about

19:19

this idea. So even

19:22

though this congestion pricing

19:24

plan begins before Kathy

19:26

Hochul takes office, she

19:29

immediately steps in and embraces

19:31

it. From time to time,

19:35

leaders are called upon to envision

19:37

a better future. And

19:39

we see this as recently as December of

19:41

2023, when

19:43

she headlines this rally in

19:46

support of congestion pricing. And

19:48

she announces, you know, not only

19:51

that she supports it. Be bold in the

19:53

implementation and execution and be

19:55

undaunted by the opposition. But

19:57

that this is what it looks like.

20:00

to be a leader. That's how you secure

20:02

progress. And I think this really

20:04

fits into a larger kind of

20:07

frame of which Kathy Hochul sees herself as

20:10

the kind of leader that makes tough

20:12

decisions that are not always popular. People

20:15

love New York City, but

20:17

it's facing some hard times. And

20:19

in this rally, she goes on to

20:21

list all of the many, many benefits

20:23

that congestion pricing is projected to bring.

20:26

Anybody sick and tired of gridlock in

20:28

New York City? She

20:30

talks about how it's gonna unclog city

20:32

streets. Anybody want cleaner air for our

20:35

kids and for future generations? And

20:38

how it's going to make the air in the city better

20:40

to breathe. Anybody think we deserve better

20:42

transit, especially those who live and work

20:44

here? And

20:47

crucially, how it's going to bring this

20:49

really critical funding stream to the

20:51

city's subways and buses. Well, then

20:54

you love congestion pricing, right? So

20:58

there's really no ambiguity here

21:00

about how the governor is

21:02

thinking about congestion pricing just

21:06

a few months ago. As

21:08

of December, there was no ambiguity.

21:11

And then of course, we get to last

21:13

week's pretty remarkable

21:15

flip-flop by the governor.

21:19

That's right. My colleague, Dana

21:21

Rubinstein and I, as well

21:23

as some other reporters, had begun

21:25

to hear rumors that the governor

21:27

might be considering backtracking. And

21:29

so we began reporting this out. Then

21:32

all of a sudden, we get this

21:34

announcement that she's going to be addressing

21:36

New Yorkers in the form of a

21:38

pre-taped speech on Wednesday. First

21:41

and foremost, I

21:43

understand the financial pressures you're facing.

21:46

And she tells New Yorkers that

21:49

she's thinking really hard about

21:51

the economy. Over the

21:53

last five years, New Yorkers have

21:55

seen the price of groceries alone go

21:58

up an average of 23%. She's

22:00

thinking about the cost of housing.

22:03

Housing prices have increased by 17%. And

22:08

she is thinking about New York City even

22:10

more broadly. Anyone walking through

22:12

Midtown Manhattan or riding the subway,

22:14

they've seen it. Office attendance

22:16

is down compared to before the pandemic,

22:18

with many workers only commuting in two

22:20

or three days a week. And she

22:22

talks about how the vacancy rate for

22:24

commercial buildings in Manhattan is at 20%.

22:28

The idea behind congestion pricing

22:30

is that it'll encourage many

22:32

current drivers to shift to public

22:34

transit. But there

22:36

is a third possibility that now poses

22:39

a greater threat than it

22:41

did at the program's inception. Drivers

22:43

can now choose to stay home altogether. And

22:46

she says for all of these reasons, she

22:48

doesn't think it's right to add another

22:50

burden on New Yorkers. I

22:52

have come to the difficult decision that

22:55

implementing the planned congestion pricing

22:57

system risks too many

22:59

unintended consequences for New Yorkers at

23:02

this time. For

23:04

that reason, I have directed

23:06

the MTA to indefinitely pause the program.

23:09

She's decided to delay

23:12

congestion pricing indefinitely. So

23:15

in her telling, this is

23:17

purely an economic decision. Congestion

23:19

pricing, she's saying, is an

23:22

existential risk to New York's economy.

23:24

That's right. She sees New

23:27

York as still too fragile

23:30

to take this big

23:32

step at this moment. There

23:34

would seem to be a meaningful

23:38

hole in this explanation from Governor

23:40

Hochul, which is that six

23:42

months ago, when she gave that

23:44

full-throated support for congestion pricing, the

23:47

city's economy was pretty much the same

23:49

as it is right now. I think

23:51

by some measures, the city's economy has

23:54

actually only gotten better over the past

23:56

six months, which leaves

23:59

many people not in touch. entirely sure that

24:01

this is a full explanation

24:03

for why the governor has

24:05

decided to stop congestion pricing

24:08

from going into effect. Well,

24:10

there is another factor that a lot of

24:12

people have pointed out looms pretty large in

24:14

the mind of New York Democrats. And

24:17

that's the election that's coming up this

24:19

November. I think in

24:22

order to understand this, you have to go back to the 2022 midterm elections, and

24:26

you have all of these congressional races and

24:28

Governor Kathy Hochul herself on the ballot. She

24:31

very, very narrowly won that race,

24:33

but a lot of Democrats down

24:35

the ballot lost. Right. And

24:37

I think that was a shock to a lot of people because New

24:40

York is a blue state, but suddenly

24:42

there seemed to be a kind of

24:44

red wave, especially in those congressional seats.

24:48

That is exactly what Republicans were cheering

24:50

that, in fact, there was a red wave

24:52

in New York, and that red wave helped

24:54

them to capture control of the

24:56

House of Representatives. And I

24:59

think in the kind of post-election analysis,

25:01

one thing that became very clear was

25:03

just how successful Republicans were in that

25:05

race at deploying these

25:07

concerns about crime, which was

25:09

really powerful, particularly

25:12

in the suburbs, where

25:14

Democrats saw some of their worst

25:16

losses. And on its face,

25:18

crime in New York City in 2022 and congestion pricing in 2024

25:21

are very different

25:25

issues. But there is this one

25:27

kind of similarity, and that is

25:30

that both of these issues are

25:32

tremendously important to suburban voters who

25:34

have become really, really crucial

25:36

for Democrats. Got it.

25:39

Let me just make some sense of this. This is kind of fascinating.

25:42

After losing a bunch of congressional races

25:44

in New York on the issue of

25:46

crime among suburban voters

25:48

outside New York City, Democrats

25:52

look to this fall's races and

25:54

say to themselves, huh, congestion

25:57

pricing looks like a

26:00

new version of crime in the

26:02

sense that it pisses off suburban

26:05

voters, who are, let's be honest,

26:07

in some cases commuters coming into

26:09

New York who might not want

26:11

to pay these congestion pricing fees,

26:13

and they think to themselves, we

26:15

might recreate that exact

26:17

same dynamic this

26:20

time around. Yeah, and I think

26:22

it's just really important to remember that

26:24

while congestion pricing has a lot of

26:26

support in New York City, it's been

26:28

pretty consistently opposed outside, particularly in the

26:30

suburbs, where we have up to 70%

26:33

of New Yorkers opposing this plan.

26:36

And what I think Governor Hochul would say

26:38

is that this is

26:40

the reality that she is responding to,

26:43

that there are a lot

26:45

of regular people, regular New

26:47

Yorkers, who have really serious

26:49

concerns. Okay, so by that political

26:51

logic, Hochul seems

26:54

to have decided that the risks

26:56

of pushing congestion pricing right now

26:58

in these months before the election,

27:00

knowing that it could endanger

27:02

democratic control of Congress potentially,

27:05

on top of her economic worries about

27:08

New York City's recovery and how congestion

27:10

pricing puts it at risk, that taken

27:12

together, those risks outweigh

27:14

congestion pricing's chief benefit,

27:17

which is it's raising a ton of money

27:20

for New York City's subway

27:22

and transportation system. That's

27:24

right. And in fact, I

27:27

think, you know, having spoken with some

27:29

of her advisors and associates, she

27:32

would say that in December, she

27:35

believed that it took leadership and

27:38

courage to stand up and support

27:40

this policy. It

27:42

also takes leadership and courage to stand

27:44

up now and say, this is

27:46

not the right time. We have

27:49

to pause. Okay, well, this

27:51

all makes me wonder, Grace, what

27:53

happens to the money that congestion

27:56

pricing was supposed to have raised

27:58

that's now gone? Poof, right? A

28:01

billion dollars to fund New York City's

28:03

aging and at times melting down

28:06

subway system. What is the

28:08

governor going to do to find

28:11

one billion dollars that congestion pricing was

28:13

supposed to produce that it now won't?

28:16

This is the billion dollar question. Initially,

28:19

she had proposed maybe

28:21

raising the payroll tax on New York

28:23

City businesses to help make up this

28:26

shortfall. This would be a tax that

28:28

would only go on businesses operating in

28:30

New York City. But wouldn't that

28:32

just hurt New York City businesses, which she said

28:34

are vulnerable in their economic recovery? Wasn't that her

28:36

explanation for getting rid of congestion pricing in the

28:38

first place? And this is exactly

28:41

the point that was made by many New

28:43

York lawmakers and the business community who basically

28:45

said, you know, this isn't fair. Why are

28:47

we solely bearing this burden? You know, whereas

28:49

congestion pricing, everyone who is driving into New

28:52

York City is actually going to help pay

28:54

for less congested streets.

28:57

Because of Friday, this proposal is dead

29:00

in the state legislature. But this leaves

29:02

this big question of, so

29:04

what next? You know,

29:06

late on Thursday night, there was this

29:08

idea floating around to just agree to

29:11

do something that would generate a billion dollars.

29:15

Like a big, you know, billion dollar

29:18

IOU. That also appears

29:20

to maybe not have the support

29:22

it needs to pass. Raising the

29:24

possibility that actually lawmakers could leave

29:26

Albany, and this legislative session

29:28

without doing anything to plug this hole. Grace,

29:31

the governor is calling this a temporary

29:33

pause or an indefinite pause. But I

29:36

think to many people's ears, that sounds

29:38

like a permanent pause. And if

29:40

we're being blunt, I wonder if the reality

29:43

here is that congestion pricing in New York

29:45

City is now dead. And if

29:47

it's said in New York City, is it ever

29:50

going to have a shot to come to the U.S. at

29:53

all? Privately, we're hearing that the governor is telling

29:56

people that she really

29:58

does believe in this policy. policy,

30:01

that it's just the wrong time. But

30:03

I also think it's important to pay attention

30:05

to this word indefinite. I

30:08

think at minimum, it suggests

30:10

that this is not going to be a brief

30:12

pause. And I think

30:15

if you look at the path

30:17

that congestion pricing has already taken

30:19

in New York, this has been

30:22

decades in the making, studies and

30:24

planning and money and all

30:27

of that has gone into building this momentum.

30:30

And in an instant on

30:32

Wednesday, all of that was

30:35

taken away. And I think for

30:37

people who really supported congestion pricing, they'd always

30:39

sort of known that there was going to

30:41

be this moment of opposition. You look at

30:44

other cities across the world

30:46

that have implemented this, you can track

30:48

that right before a policy

30:50

like this is put into place, people get panicked.

30:53

And you know, it takes a little while for

30:55

them to get used to it as just sort

30:57

of a regular state of affairs. But

31:00

a lot of these studies say, eventually

31:02

people do get used to it. New

31:04

York really was positioned to lead as

31:06

an example of what congestion pricing could

31:08

be. But I think

31:10

this decision has a lot of

31:13

proponents really concerned that if New York

31:15

isn't able to implement this policy, what

31:18

other city will? I

31:20

have a final question for you, Grace. What

31:23

happens now to the millions

31:25

and millions of dollars

31:28

of cameras and detectors

31:30

that have been installed all across the congestion

31:33

zone in Manhattan to make this system work?

31:35

They were supposed to flip a switch and

31:37

they were going to go on June

31:40

30th. What happens to them? What

31:42

happens to all that money now? It's

31:45

a really great question. I've heard some people

31:47

say, we already have the infrastructure up. Why

31:49

don't you just take it out for a

31:51

test drive, tax people a dollar to drive

31:53

into the business district and kind of let

31:55

them get used to that? As far as

31:57

I know, that idea has no legs. What

32:02

it does seem like is that on

32:04

June 30th, New Yorkers will be able to

32:06

drive their cars wherever they want in Manhattan.

32:11

And they'll also be able to look up at

32:13

this very visible reminder of

32:16

what New York almost did. Well,

32:22

Grace, thank you very much. We appreciate it. Thanks

32:25

so much, Michael. Over

32:31

the weekend, New York state

32:33

lawmakers ended their legislative session without

32:36

a plan to replace the $1

32:38

billion a year in funding that

32:40

congestion pricing was supposed to raise.

32:43

As a result, plans to upgrade

32:46

the city's century-old subway system are

32:48

now in doubt. We'll

32:52

be right back. The

32:55

Daily is supported by Spiegel and

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33:28

what else you need to know today. An

33:31

audacious raid by the Israeli military

33:33

over the weekend rescued four Israeli

33:35

hostages in Gaza who had been

33:37

held there by Hamas since October

33:39

7 and reunited them

33:41

with their families. But

33:43

according to officials in Gaza, the

33:46

raid killed and wounded scores

33:48

of Palestinians. A

33:50

spokesman for Hamas said that in response,

33:53

the group would take punitive

33:55

measures against remaining Israeli hostages

33:58

in Gaza. Meanwhile. A

34:00

prominent member of Israel's war cabinet,

34:02

Benny Gantz, quit on Sunday

34:05

in protest of the government's handling of

34:07

the war in Gaza. Gantz

34:09

had set this weekend as a deadline

34:11

for Israel's prime minister to outline a plan

34:13

to bring the war to an end.

34:16

No such plan has been outlined,

34:19

prompting Gantz to resign. Today's

34:24

episode was produced by Will

34:26

Reid, Nina Feldman, Stella Tan,

34:29

and Rachele Boncha. It

34:31

was edited by Patricia Willens, contains

34:34

original music by Alicia Beitou, Dan

34:37

Powell, and Rowan Misto, and

34:39

was engineered by Alyssa Moxley. Our

34:42

theme music is by Jim Brunberg and Ben Lansberg

34:44

of Wonder League. That's

34:53

it for the Daily. I'm Michael

34:55

Babor. See you tomorrow. With

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