After all this, who won?

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Nov 14, 2024 View in browser   By Jason Beeferman Presented by  Gov. Kathy Hochul brought back congestion pricing today. | Don Pollard/Office of Governor Kathy Hochul PLAYBOOK PM, CONGESTION PRICING EDITION: 162 days ago, the governor angered almost everyone when she unexpectedly announced an “indefinite pause” to the $15 congestion pricing toll. Republicans called it a political stunt. Powerful New York City Democrats decried it as a betrayal to transit riders and constituents. The MTA was heartbroken, business leaders felt backstabbed, legislative leaders were blindsided and climate advocates were enraged. Today Gov. Kathy Hochul officially brought back the largely unpopular toll plan — this time, as expected, at a $9 price point that’s likely to rise (more on the specifics of how it will work below). “Back in June, I stood up on behalf of hard working families and simply said no,” Hochul said. “No to a new $15 congestion toll that at that particular time was just too much.” Today Hochul, at this particular time, is saying yes. The move has already emboldened some of her enemies, angering the bipartisan coalition of outer borough, suburban and exurban electeds who have long rallied against the toll. It’s also set the stage for President-elect Donald Trump to follow through on his May statement that he would “TERMINATE Congestion Pricing in my FIRST WEEK back in Office!!” But in a lengthy statement to Playbook, Trump’s opposition to the toll seemed a bit more measured: "I have great respect for the Governor of New York, Kathy Hochul, and look forward to working with her to Make New York and America Great Again. But I strongly disagree with the decision on the congestion tax,” Trump said through a transition team spokesperson. “It has never worked, but especially so with a city, town, or village that is trying to come back from very rough times, which can certainly be said of New York City. It will put New York City at a disadvantage over competing cities and states, and businesses will flee,” the Republican added, notwithstanding the fact that New York business leaders support congestion pricing. He called it a “massive tax” that will “hurt workers, families and businesses, but in particular, anything to do with jobs” and dubbed it “the most regressive tax known to womankind (man!)” MTA CEO Janno Lieber is already optimistic Trump will change his mind. “Ninety percent of people who work in his office buildings come via transit,” Lieber said. “He's a New Yorker. I think that there's a real possibility, if he takes a hard look at the issue, he will, as a New Yorker, he will understand.” So, after all this, Playbook poses the question — who won? 1. Republican Rep. Mike Lawler Republican Hudson Valley Rep. Mike Lawler. | Eduardo Munoz Alvarez/AP The Republican has enjoyed stoking speculation that he will challenge Hochul in 2026 with a run for governor. The return of congestion pricing could help him. Lawler has railed against the toll, siding with suburban voters who were key to Republican Rep. Lee Zeldin’s strong gubernatorial challenge to Hochul in 2022. The timing of the announcement — less than 10 days after Election Day — bolsters Republicans’ view that Hochul stalled the toll to give Democrats a shot of gaining power in D.C. and helps them use it as a liability against Hochul. By 2028 — one year after a new governor would be sworn in — the toll will be raised to $12. 2. House Minority Leader Hakeem Jeffries House Minority Leader Hakeem Jeffries | Marc A. Hermann / MTA The powerful Democrat denies he directed Hochul to pause congestion pricing, but POLITICO reported the leader played a role in the governor’s decision to halt the toll out of concern it would hurt Democrats running in battleground congressional districts. While Democrats floundered nationally on Election Day, New York Democrats recaptured three House seats with congestion pricing out of the way. The state party’s coordinated campaign effort, which was co-led by Hochul, Jeffries and Sen. Kirsten Gillibrand, poured resources into those races and is taking credit for those victories. In the end, Jeffries got exactly what he wanted in New York — Democrats in his home state won back almost all the House seats they lost, and any backlash Hochul will receive from this resuming of congestion pricing likely won’t be targeted at Jeffries. 3. Janno Lieber MTA CEO Janno Lieber | Trent Reeves/MTA The CEO of the MTA didn’t just win big with the governor coming back to support the toll, which will fund $15 billion worth of major upgrades and repairs to an ailing and limited transit service. The biggest victory for Lieber and the MTA is the governor’s surprise pledge of “strong support” for the MTA’s costly capital plan, which puts the state on the hook for $33 billion, that came in conjunction with today’s announcement. “To ignore the challenge of finding improvements for 100-year-old aging infrastructure would be nothing but an abdication of my duties as governor, and I will not do that,” Hochul said. Lieber is over the moon: “You have stepped up for transit yet again,” he told the governor today. 4. Outer borough residents and transit workers TWU Local 100 President John Samuelsen. | Marc A. Hermann / MTA New York City Transit Transport Workers Union President John Samuelsen is taking a victory lap, too. “Essentially, I won this fight,” he told Playbook. Hochul’s revamped congestion pricing plan will boost transit in outer boroughs, a key priority for Samuelsen. “She’s decreasing the price, and she’s going to upfront invest in markedly improved outer borough bus service,” he said. “I say it’s a marked improvement … It’s going to be over 20 bus routes, a blend of local and expresses, and that’s immediately. And she’s instructing the MTA to do an analysis of what other routes need to be increased." The funding for more frequent bus service outside of the island of Manhattan is also coupled with tens of millions of dollars in investments in the Bronx, which will target environmental justice priorities. — Jason Beeferman   A message from Amazon:   FROM THE TOLL BOOTH FILE - Recently installed toll traffic cameras hang above West End Ave. near 61st Street in the Manhattan borough of New York, Nov. 16, 2023. (AP Photo/Ted Shaffrey, File) | AP HOW WILL THIS ACTUALLY WORK?: Starting at midnight on Jan. 5, drivers entering Manhattan below 60th Street during the day will need to pay a toll: $4.50 for motorcycles, $9 for passenger vehicles, $14.40 for small trucks and non-commuter buses and $21.60 for large trucks and sightseeing buses. At night, drivers will only have to pay 25 percent of the daytime toll amounts. The MTA will use the money to leverage $15 billion in bonds for projects like the second phase of the Second Ave subway extension, modernized signal systems, expanded accessibility at more than 20 stations and the financing of hundreds of new electric buses. The plan also commits to funding a series of initiatives targeting residents of lower-income neighborhoods. That includes $15 million to replace diesel-powered refrigerators at Hunts Point Produce Market and $20 million for an asthma center and case management program in the Bronx, $20 million in electric truck charging infrastructure and $70 million for a host of other climate initiatives. The governor wants the MTA to expand bus services and requested it increase the frequency of 23 local and express routes across the city. She also directed the MTA to find $100 million in annual savings from these measures. Tolls are likely to rise in the future, but the governor has capped those increases at 60 percent by 2027 and 80 percent by 2030. — Timmy Facciola   The lame duck session could reshape major policies before year's end. Get Inside Congress delivered daily to follow the final sprint of dealmaking on defense funding, AI regulation and disaster aid. Subscribe now.     From The Campaign Trail College campuses like Cornell University proved pivotal in Democratic victories in battleground congressional seats this year. | AP NY COLLEGE YOUTH BUCK NAT’L TREND: Young adults across the country seemed to shift right in favor of Trump this past Election Day. But in areas of upstate New York — which rival the city of Boston for their high concentration of colleges — the left-leaning university students played a major role in the success of the state’s Democratic congressional candidates. “One of the prevailing post-Election Day narratives is that nationally young voters moved toward the GOP,” our colleague Bill Mahoney reports today. “But in upstate New York, college-age students provided a critical boost for Democrats in the three battlegrounds — enough to provide the margin of victory in Riley’s district and run up the numbers in the other two. Those results offer a stark contrast compared to the outcome of the last midterm election in New York, which saw Republicans gain control of three seats in the House while Democrats fared far better in other parts of the country.” Read the full POLITICO story here   Policy change is coming—be the pro who saw it first. Access POLITICO Pro’s Issue Analysis series on what the transition means for agriculture, defense, health care, tech, and more. Strengthen your strategy.     AROUND NEW YORK — THE NEW PELOSI?: Rep. Tom Suozzi never disclosed his stake in biotech startup Clarapath, which has boomed thanks to a boost from Northwell Health. (New York Focus) — LAWLER 4 GOV: It seems increasingly likely the Republican congressman will run on the GOP ticket for governor. (Gothamist) — POPULATION EVAPORATION: Cornell University researchers project the state's population could shrink by over 2 million, or 13 percent, in the next 25 years. (Cornell Chronicle) Missed this morning’s New York Playbook? We forgive you. Read it here.   A message from Amazon:     Follow us on Twitter Jason Beeferman @JasonBeeferman   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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