Op-Ed: Gov. Hochul Was Right To Stop Congestion Pricing, Now She Should Focus On Auto Costs 

When I talk to the members of my community, the rising cost of everyday essentials is a constant topic.

So when Governor Kathy Hochul made the decision to halt the congestion pricing plan, we breathed a sigh of relief that we had avoided at least one additional cost. For New Yorkers who can’t depend on mass transit – either because it’s not a reliable alternative in their neighborhood or it just doesn’t feel safe – yet another added tax on drivers would be a direct hit to their quality of life. 

We commend the Governor for her efforts, but she shouldn’t stop there. Governor Hochul must take proactive steps to reduce other costs for residents of the Empire State.

Currently awaiting her signature is an ill-advised measure, S5085A, recently passed by both chambers in Albany, which threatens to further increase expenses for motorists. If she truly cares about her constituents’ financial well-being, she should veto this bill, just like she did last year. 

New Yorkers already know the pain of living with high costs. From rent to groceries, what’s required to simply exist in New York state seems to climb higher every year. Now, Albany is on the brink of advancing legislation that could make it even more expensive to own a car. 

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With auto insurance costs soaring and new vehicle prices once again on the rise, the cost of car ownership has become a significant burden. Instead of seeking ways to lower the cost of car ownership, state lawmakers are instead pushing policies that would raise costs on drivers. 

Senate Bill S5085A proposes changes to how auto warranty repairs are compensated. While proponents claim it will ensure fair pay for technicians, the reality is that this bill will increase costs for consumers at a time when they can least afford it. If signed into law, this bill will put more money in car dealers’ pockets by making car owners worse off. 

Under the current guidelines, car manufacturers negotiate discounted and standard fees with dealerships for warranty repairs, similar to how insurance companies negotiate rates with healthcare providers on the front-end. However, S5085A would allow dealers to charge manufacturers the same rates for warranty repairs as they do for non-warranty services. This shift would result in unnecessarily higher costs for common repairs like electrical problems, A/C issues, or other work that can be performed much faster on new, warranty-covered vehicles.  

While the auto dealers are touting the benefits of this bill for labor unions, the primary beneficiaries won’t be the technicians these unions represent. Dealerships already make substantial profits from warranty repairs, with a significant portion of reimbursements going into their pockets rather than to the mechanics who perform the work. The proposed legislation will further boost dealership revenues, but without guaranteeing higher paychecks for technicians, as the bill includes no mandates for increased worker pay. 

Manufacturers estimate the bill would force them to pay an additional $274 million annually to dealerships for warranty repairs. This cost won’t simply be absorbed by the manufacturers; instead, it will be passed on to consumers in the form of higher car prices. With vehicle costs already exorbitantly high, New Yorkers can ill afford another hike in their expenses.

With S5085A clearing both chambers and now awaiting the governor’s signature, it’s up to her to decide whether she wants to boost auto dealer profits or help New Yorkers save money.  

Governor Hochul’s recent decision to pause congestion pricing should be commended for protecting New Yorkers from economic hardship. She should apply the same scrutiny and resolve to the auto warranty repair bill. Albany’s duty is to safeguard the financial well-being of New Yorkers, not to cater to industry lobbyists pushing for higher profits at the public’s expense.

By vetoing S5085A, she can protect consumers and reaffirm her commitment to putting her state’s residents first. 

Dr. Pastor Phil Jordan

Dr. Pastor Phil Jordan is CEO of Strong Enough Achievers Foundation, a community organization that promotes civic engagement and youth development programs.