New York City businesses fear new congestion pricing plan will cost them more

NEW YORK — Some New York City business owners are worried the new congestion pricing plan, which the MTA board is expected to vote on next week, will end up costing them more.

Gov. Kathy Hochul’s retooled congestion pricing plan, with $9 tolls to enter Manhattan’s Central Business District, would start in January if approved, despite fierce opposition from some lawmakers. 

Owners worry cost of business will rise

Proponents of congestion pricing argue it’s critical to lift the cap on New York’s economic growth, but some business owners below 60th Street fear they’ll be shouldering the added costs. 

“The wholesale, it’s going to increase our price, so we’ve got to impose on the customers,” said Fang Lim, who owns Sheng Dry Cleaners in Hell’s Kitchen. 

Lim worries congestion pricing could put him out of business. 

But a few blocks up on 9th Avenue, employees of Amy’s Bread were optimistic that less traffic could encourage more customers to walk through the door. 

“Our customers, mostly they are tourists,” said Jacinto Onofre. “Probably going to be something good for us, probably, let’s see. We hope.” 

Better mass transit will improve foot traffic, proponents say

Hochul paused the original congestion pricing rollout in June, saying the $15 toll would be too much of a financial strain on drivers. Her new plan reduces the toll by $6, while still being able to raise an expected $15 billion for subway repairs. 

“We need capital dollars to do the maintenance and repairs of the subways, buses, commuter railroads to keep growing the economy of the region,” said Tom Wright, president and CEO of the Regional Plan Association. 

Better train service means more foot and rail traffic for businesses, Wright says. 

“There’s just a physical limit on how many people can get into the city by car,” he said. “The only way we can continue to grow the region and the city’s economy, add more jobs, is by going it more efficiently.” 

Andrew Rigie, executive director of the New York City Hospitality Alliance, says wholesalers don’t take mass transit. He says restaurant and other business owners like Lim are worried the toll could create a ripple effect of costs throughout the industry. 

“They’re concerned that now all their suppliers, where they get food and other supplies from, are all going to start charging a congestion surcharge on their invoices,” Rigie said. 

If the MTA board approves the revised place, New York City and the state will have to sign off and send it to the federal government. 

Hochul hopes to implement congestion pricing by Jan. 5, 2025. 

Ali Bauman

Ali Bauman joined CBS News New York as a general assignment reporter in 2016. Ali is a proud millennial who embraces social media for storytelling to bring news to a new generation of viewers.