Congestion pricing is back tomorrow

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Nov 13, 2024 View in browser   By Jason Beeferman Presented by  Gov. Kathy Hochul is bringing back congestion pricing on Thursday. | Mary Altaffer/AP YES, IT’S REALLY HAPPENING: Gov. Kathy Hochul is set to announce the return of the congestion pricing toll at a lower price Thursday afternoon, multiple sources confirmed to POLITICO today. The toll is coming back at $9 — six dollars lower than the initially planned $15 — but two sources who spoke with POLITICO say the price is likely to increase in the coming years. In a late afternoon statement, the governor’s office confirmed a congestion pricing announcement will be made on Thursday. "Governor Hochul paused congestion pricing because a daily $15 toll was too much for hard-working New Yorkers in this economic climate,” a spokesperson said. “Tomorrow, the Governor will announce the path forward to fund mass transit, declog our streets and improve public health by reducing air pollution." The return of the unpopular toll program comes after the governor halted it in a shock June announcement that angered transit advocates and some of Hochul’s most influential allies. Her “indefinite” pause on tolls below 60th Street in Manhattan left the MTA with a $15 billion revenue hole. While President Joe Biden’s administration has been supportive of congestion pricing, President-elect Donald Trump has ridiculed it. The time left for Hochul to reintroduce congestion pricing had been disappearing fast, as the toll requires federal sign off from the Federal Highway Administration — something a Trump administration appeared unlikely to grant. It’s unclear how the lower toll price will affect the MTA’s finances. Beyond congestion pricing, the MTA’s capital plan also puts the state on the hook for an additional $33 billion. The governor had been signaling the reintroduction of the toll since Friday. On Tuesday, she said a change to congestion pricing is expected soon. Since June, Hochul has maintained her pause of the program out of concern the toll would place an undue economic burden on commuters. But POLITICO reported the decision was also driven by politics — the governor was concerned the toll would be a political liability for Democrats hoping to win battleground congressional seats. Democrats in New York largely fared well in those districts at the ballot box, bucking a national drubbing for their party. Opponents of the toll now say the reintroduction of congestion pricing one week after Election Day reaffirms that the governor’s decision was motivated by politics: “If that reporting is true, then this very obviously reeks of politics,” Orange County Democratic state Sen. James Skoufis told Playbook Monday. GOP Rep. Mike Lawler, who has been floated as a challenger to Hochul in 2026, also slammed the return of congestion pricing as political. — Jason Beeferman   A message from Amazon:   FROM THE DELEGATION Republican Reps. Nick Lalota (left) and Mike Lawler (center) are hopeful state and local tax deductions can be included in next year's tax bill. | Anna Moneymaker/Getty Images SALTY RESPONSE: New York Republicans seem less than thrilled with Democratic Rep. Pat Ryan, who’s vying to out-maneuver House Speaker Mike Johnson by rallying bipartisan support for a bill to lift the cap on the amount of state and local taxes, or SALT, that Americans can deduct from their federal income tax. Rep. Andrew Garbarino, who wrote the bill Ryan is championing, told Playbook he is, “highly encouraged by President Trump's attention to this critical issue and confident we'll secure a path forward for SALT relief in the coming months with his support." Garbarino would not commit to joining forces with Ryan to rally bipartisan support for the bill. A spokesperson for Rep. Mike Lawler said that while, “the congressman is open to any fix that gets this done, it’s pretty clear this will be resolved in the tax bill next year.” Johnson told Playbook two weeks ago that SALT would be addressed in a broader tax bill — not on its own. In a letter sent this morning, Ryan asked Trump to commit to passing a bipartisan standalone bill to immediately lift the cap. Rep. Nick Lalota told Playbook that Democrats’ “votes on Feb. 14 to block a commonsense Republican bill to increase the cap went against their commitment to put people over politics," referring to a vote in which Republicans paired lifting the cap with condemning President Joe Biden’s energy policies, making it a non-starter for Democrats. A Lalota spokesperson declined to say whether he would work with Ryan. Republican Rep. Nicole Malliotakis, who sits on the Ways and Means Committee, is enthused by Trump’s support, but she doesn’t see a path to lifting the cap entirely. A spokesperson for Trump’s transition team did not respond to a request for comment. Empire State Republicans may find no choice but to work with Democrats as their rural colleagues remain staunchly opposed to the provision. “Pat Ryan is wasting President Trump’s time and will run into the same issue that the GOP Long Island Delegation already has: the MAGA base doesn’t care about a tax deduction for mostly rich, high-tax blue-staters,” NYC Young Republican Club Executive Secretary Vish Burra told Playbook. “The Texas and Florida delegations alone in the House will make sure it’s DOA.” Sen. Bernie Sanders of Vermont told Playbook that lifting the cap entirely would be a “tax break for billionaires,” but he’s open to a compromise that “protects the middle class in high tax states.” — 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 CITY HALL City Council Speaker Adrienne Adams said she was surprised by the mayor's comments on broker fees. | Gerardo Romo/NYC Council Media Unit BROKER FIGHT: City Council Speaker Adrienne Adams said she was caught off guard by Mayor Eric Adams’ criticism Tuesday of legislation reining in broker fees, ahead of its approval by the legislative body today. “I was surprised,” she said at a press conference. “We worked together with the administration with this bill, and I can’t interpret what the mayor’s saying but the administration was a part of the negotiations on this bill, they raised no major issues and I haven’t heard from the mayor personally on it.” Mayor Adams threw cold water on the bill on Tuesday, echoing opposition from the real estate industry. “Sometimes our ideas are not fleshed out enough to know what are the full long-term ramifications,” he said. The legislation – which passed today with 42 votes, a veto-proof majority – would prevent tenants from having to pay fees to real estate agents hired by landlords, with an eye towards reducing upfront leasing costs. The mayor’s office did not commit on Tuesday to signing the bill. The speaker indicated the body is prepared to override the mayor if he vetoes the measure. “This bill is very significant and important to this council and the council will be prepared to meet any negative response from the administration,” she said. — Janaki Chadha   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.     From The Campaign Trail Only one candidate backed by Republican Rep. Elise Stefanik's PAC won their election this year. | (J. Scott Applewhite/AP Photo) FAILING UPWARD : While Rep. Elise Stefanik prepares for her promotion to serve as ambassador to the United Nations next year, nearly every candidate that she endorsed through her leadership PAC will need to find work after losing their elections last week. In the Hudson Valley, Stefanik tried taking Alison Esposito under her wing, but could not transmit her political acumen to the former NYPD captain, who lost to Rep. Pat Ryan by more than 13 points. Other failed candidates include Caroleene Dobson of Alabama, Laurie Buckout of North Carolina, Monique DeSpain of Oregon, Mayra Flores of Texas, and Yvette Herrell of New Mexico, who all lost their races last Tuesday. The sole victor was Julie Fedorchak in North Dakota. An eighth endorsee, Lt. Gov. Nancy Dahlstrom, dropped out of her Alaska primary over the summer. Stefanik started the Elevate PAC in 2018 with the goal of empowering Republican women to run for office. She counts Anna Paulina Luna of Florida and Jen Kiggans of Virginia among her successful past alumni. Spokespeople for Stefanik’s campaign and her Elevate PAC did not respond to a request for comment. — Timmy Facciola SENATE DEMS CLOSE IN ON ‘CUSE VICTORY: Democratic state Senate candidate Chris Ryan is moving closer to securing a win in his bid to hold the Central New York seat being vacated by Rep.-elect John Mannion. Ryan, the minority leader in the Onondaga County Legislature, led Republican Nick Paro by 548 votes the morning after the election. Since the final absentee ballots have been counted, Ryan’s lead has grown to 1,489 votes. There are about 3,000 affidavit ballots left to open up this week, and if his edge remains more than around 800 votes, there won’t be a recount. A win by Ryan would lock in the Democratic majority in the Senate at 41 of 63 seats. That would be a loss of one from a year ago, but would still leave Democrats with the third-largest conference in state history. — Bill Mahoney   A message from Amazon:   IN OTHER NEWS... — HOCHUL’S LETTER TO AMTRAK: The governor wrote a letter to the national passenger railroad company imploring it to restore cancellations to the Empire Service line, which provides service between New York City and Albany. (READ) — NEW ALLEGED ADAMS STRAW DONOR SCHEME: Donors that were reported as contributing to a Queens fundraiser for Mayor Eric Adams were allegedly reimbursed for their contributions or denied contributing at all. (The Guardian) — BRONX DEMS: A political consulting firm connected with the party’s leader has received the majority of campaign cash for most candidates who run for and win a civil court judgeship. (NY Focus) — FIREFIGHTER COULD BE ARSONIST: A Long Island firefighter was arrested by the Suffolk County police for starting a brushfire in Medford. (Newsday) Missed this morning’s New York Playbook? We forgive you. Read it here.   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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