A proposal to bring a vehicle registration fee similar to New York City’s congestion pricing to upstate New York is sparking politically-charged debates.
During the Transportation Committee’s Joint Legislative Budget Hearing recently, New York Public Transit Association President Miguel Velázquez appealed to lawmakers, requesting additional state operating assistance and non-Metropolitan Transportation Authority capital funding for upstate New York’s transit systems, as well as an additional $25 fee imposed by the state Department of Motor Vehicles.
“Funding for upstate transit has failed to keep pace with rising costs and growing demand from employers and communities,” Velázquez said during the hearing. “If downstate funding mechanisms are proven and effective, why not expand some of those to upstate?”
According to Velázquez, the proposed annual supplemental vehicle registration fee would raise about $125 million dollars per year if enacted.
Here’s what we know so far.
Who would start paying an additional fee in New York?
The $25 annual supplemental vehicle registration fee would affect all New York residents living in counties that don’t contribute to the MTA, a spokesperson for Assemblymember William Magnarelli’s office said.
New York City and the following counties currently contribute to the MTA: Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester.
How is this proposal different from NYC’s congestion pricing?
New York City’s congestion pricing, which went into effect in January 2025, charges drivers $9 to enter Manhattan below 60th Street. According to Gov. Kathy Hochul, the program decreased the number of vehicles entering the zone by 11% in its first year and generated over $550 million in net revenue for the MTA.
A federal judge on Feb. 3 also issued a ruling that the Trump administration’s effort to terminate the congestion pricing program was unlawful, Reuters reported.
“The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly,” Hochul said in a statement. “Congestion pricing is legal, it works, and it is here to stay. The cameras are staying on.”
While congestion pricing funds MTA capital projects, the NYPTA’s proposal would put the money toward day-to-day operations, the governor’s office said.
How Hochul, Blakeman are reacting to proposed additional fees for upstate New Yorkers
While details of a standalone bill have yet to be filed, a spokesperson for Hochul’s office said the governor “has no plans to implement an additional fee on drivers in the region,” noting her proposed fiscal year 2027 budget includes a 5.75% increase in upstate transit funding.
However, Bruce Blakeman, Hochul’s Republican challenger in the governor’s race and Nassau County executive, is calling the proposed fee “congestion pricing beyond NYC.”
“It’s wrong!” Blakeman said in a Feb. 26 Facebook post. “Under Kathy Hochul, New Yorkers are already overtaxed. Now they want you to pay more just to drive. This is how it starts: one region, then statewide.”
Hochul’s campaign manager Ryan Radulovacki said Hochul is putting money into New Yorkers’ pockets.
“Bruce Blakeman is fighting alongside Donald Trump to make everything New Yorkers buy more expensive and take $4,200 out of families’ pockets every year thanks to his tariffs,” Radulovacki said in a written statement.
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers’ taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at ebarnes@usatodayco.com.
This article originally appeared on Rockland/Westchester Journal News: Will ‘congestion pricing’ get approved for upstate NY? What we know
Reporting by Emily Barnes, New York State Team / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
