New York Democrat Gov. Kathy Hochul announced Wednesday that she was shelving a plan to toll drivers entering New York City's central business district just weeks before it was scheduled to go into effect.
"After careful consideration I have come to the difficult decision that implementing the planned congestion pricing system risks too many unintended consequences," Hochul said, The New York Times reported.
"I have directed the M.T.A. to indefinitely pause the program."
Hochul's decision not to implement the plan stems from her concern it could hurt Democrats in competitive House races during November's general election, Politico reported Tuesday.
The first-in-the-nation congestion pricing plan had been slated to start June 30. Drivers using E-Z Pass were to pay as much as $15 to enter Manhattan south of 60th Street, The New York Times reported Tuesday.
The congestion plan, meant to reduce traffic, improve air quality and raise money for the beleaguered public transit system, was expected to produce $1 billion annually in revenue for the MTA, which needs to maintain and rebuild the region's subways, buses, and two of its commuter rail systems.
To replace that lost expected revenue, Hochul is considering proposing a tax on New York City businesses, the Times reported.
Hochul needs only the approval of the authority's board to stop implementation of the plan, the outlet said.
Former President Donald Trump, the presumptive GOP presidential nominee whose Trump Tower is located within the congestion pricing zone, has said he would "terminate" it his first week back in office if he wins reelection in November.
One source told Politico that Hochul was responding to worries raised by staffers to House Minority Leader Hakeem Jeffries, D-N.Y., whose party is trying to win back control of the chamber.
Victories in New York congressional races during the 2022 midterm elections helped Republicans win control of the House.
The Times reported Hochul also had concerns that the congestion plan might discourage commuters from returning to Manhattan's central business district, which has yet to fully recover from the pandemic.
The congestion plan was passed into law as part of a negotiated state budget between then-Gov. Andrew Cuomo, D-N.Y., and legislative leaders in 2019.
Roughly 63% of New York voters opposed the plan, according to an April Siena College poll, Politico reported.