June 6, 2024 - 7:45pm

In a rare spasm of sanity, New York Governor Kathy Hochul yesterday cancelled the Metropolitan Transit Authority (MTA)’s plans to implement a “congestion pricing” scheme in Downtown Manhattan to finance public transit improvements. Approved five years ago under the administration of now-disgraced former governor Andrew Cuomo, the plan would have charged drivers entering Manhattan below 60th Street a $15 toll, equivalent to the tolls already imposed on drivers entering the borough on most bridges and tunnels.

With the plan due to take effect at the end of this month, Hochul’s interdiction comes after Manhattan’s new Beijing-style street-by-street camera tolling system has already been installed. Both the New York Times and New York Post described her reversal as “stunning”. They needn’t have been so stunned.

In an election year, Hochul’s Democratic Party is in trouble both nationally and locally (if we define “local” as including the working-class suburbs that surround New York City — places like Nassau County, Westchester County, and North Jersey). The Democrats’ problem is clear: after decades serving as a political refuge for America’s working class, their support among that demographic is cratering.

Specifically, President Joe Biden’s support among non-college-educated Americans (60% of the national population) has declined by 10 percentage points since this stage in his 2020 campaign. Among black and Hispanic voters, two groups overrepresented in the working class, his support is down nearly 20 percentage points since last election cycle. As Batya Ungar-Sargon argued in her recent book Second Class, Democrats’ support is falling due to the party’s long-term refusal to address three issues that dominate the lives of regular people: unlimited (particularly illegal) immigration and its pressures on the job market, trade policies that disadvantage American manufacturing, and the high and increasing costs of living and working in America.

For decades, living in Manhattan has been a luxury unavailable to most people who work there. Average rent in the borough is over $4,500 per month, and more than half of its working population commutes to work. Workers in Manhattan’s service industry, trades, and other blue-collar jobs — particularly if they desire to own a home and live a relatively comfortable life — are frequently forced to travel from far away.

If they do not wish to waste hours in New York’s slow, unpleasant, and very expensive commuter transit system (which from past experience they know is unlikely to be improved much by the money raised through congestion pricing), they are forced to commute by car. Therefore, when the state imposes a toll on all cars entering Manhattan’s business district, it is functionally instituting an extra tax on the people who have already been priced out of living in Manhattan — on the taxi drivers, teachers, and cooks who work as the hired help of those wealthy enough to live in the area. Both the data and anecdotal evidence (perhaps most notably Donald Trump’s raucous rally in the South Bronx last month) show that voters are getting the message.

The language of Hochul’s announcement makes this subtext abundantly clear. “Let’s be real, [a] $15 charge […] puts the squeeze on the very people who make this city go,” she said. “I cannot add another burden to working middle-class New Yorkers or create another obstacle to our continued economic recovery.” Her wording is so perfect that it could have been written by Democratic National Committee Chair Jaime Harrison himself. And perhaps it was; in any case, the probability that her decision was influenced by some calls from Democratic Party HQ is high.

Recent history shows that New York and D.C. Democrats have no problem imposing new burdens on working middle-class New Yorkers (or New Jerseyites). What they do likely have a problem with, however, is seeing huge swathes of those voters cast a ballot for Trump in November, or elect more legislators like firebrand Republican Bay Ridge and Staten Island Representative Nicole Malliotakis to Congress in Long Island, New Jersey, and Northeast Pennsylvania. For both DNC headquarters and the State party, forestalling such a calamity is well worth an embarrassing U-turn on congestion pricing.


John Masko is a journalist based in Boston, specialising in business and international politics.