Plans to spend NYC’s congestion pricing revenue laid out

(The Center Square) — Spending on public transit upgrades tied to revenue from New York City’s controversial congestion pricing program took a big step forward, even as a federal court challenge over it plays out in court.

On Wednesday, Gov. Kathy Hochul announced that the Metropolitan Transportation Authority will be tapping $1.75 billion from the new tolling charges to modernize the subway system.

“Nearly one year in, congestion pricing has already sped up traffic and cleaned our air, and now it is supporting generational upgrades to our subway system,” Hochul said in a statement. “We’ve already shown what we can do when we support transit — ridership continues to climb and subway performance is at record highs.”

The MTA Board on Wednesday approved a design-build contract to modernize subway signals on the A and C lines in Brooklyn and Queens, moving forward on one of the most significant upgrades to service quality and reliability in the system.

The board also approved accessibility upgrades to five subway stations, including the major complex at 42 St-Bryant Park, which serves 111,000 daily riders on the 7, B, D, F and M lines.

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“When these projects are completed, hundreds of thousands of riders will benefit from even more reliable and accessible service thanks to these significant investments,” Hochul said.

Under the first-in-the-nation program, which got underway Jan. 5, most cars and trucks pay a $9 toll between 5 a.m. and 9 p.m. on weekdays and between 9 a.m. and 9 p.m. on weekends to travel through the Congestion Pricing Zone from Midtown to downtown.

City officials have reported faster commutes for drivers and less congestion, and the MTA — which operates New York City’s fleet of buses, trains and subway cars — says the revenue generated from the program will put the agency on track to meet its funding goals.

But the spending comes amid uncertainty over the program, with a legal challenge still pending. Transportation Secretary Sean Duffy sent a letter to Hochul in February saying the Federal Highway Administration was pulling its approval of congestion pricing and would work with New York State on an “orderly termination of the tolls.”

Duffy called congestion pricing a “slap in the face” to working-class Americans and small business owners and set a deadline to shut the program down. The city filed a lawsuit seeking to block the move.

A federal court judge issued a temporary restraining order in May barring the transportation department from enforcing a directive to shut down the program.

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The toll has continued as the legal challenge plays out.

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