NYC Food Suppliers Lead Last Minute Congestion Pricing Exemption To Feed the City

city freight delivery congestion pricing
City freight delivery congestion pricing

As New York City prepares to implement congestion pricing in January 2025 (IN LESS THAN 2 WEEKS!), concerns are mounting among the city’s food vendors and distributors.

The new tolls, designed to reduce traffic and fund public transportation, threaten to disrupt the vital food supply chain that supports restaurants, schools, healthcare dining facilities, and hunger relief organizations.

Without a carve-out for food distributors, the policy could lead to increased costs that ripple through the city’s dining ecosystem and ultimately land on consumers.

Colin O’Neil of O’Neil Strategies emphasized the urgency of the issue: “The congestion pricing plan fails to account for the essential role food distributors play in the city’s economy and well-being. Without an exemption, this policy could choke the very lifeline that feeds New York City. This is not about the politics of the issue, nobody disagrees with the funding of mass transit. This is about the reality of who is going to end up paying for the increased cost of food that will come as a result of this legislation. “

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O’Neil has been recruited by a coalition of food distributors to serve as the “point” to convince Governor Kathy Hochul and legislators that a carve out prior the January 4, 2025 launch of combustion pricing in NYC is a must.

His extensive lobbying record on behalf of farm and agriculture sectors solidifies his role as a trusted advocate for food producers and distributors. Over the years, O’ Neil has spearheaded policy initiatives and coalition efforts that have directly supported sustainable agriculture, fair market access, and food affordability.

His advocacy has bridged gaps between stakeholders and policymakers, earning bipartisan support for solutions that benefit the agricultural community.

Colin’s work includes championing federal policies to promote farm innovation, reduce regulatory burdens, and secure funding for agricultural programs. His efforts have also focused on protecting farmers’ interests in trade negotiations and addressing challenges posed by evolving food safety and environmental regulations.

Through O’Neil Strategies, LLC, Colin brings this wealth of experience to New York City’s food distributors coalition, providing strategic guidance to safeguard their interests and ensure food remains accessible and affordable for all.

The majority of New York City’s food supply comes from distribution hubs like Hunts Point Market in the Bronx. These operations rely heavily on trucks to deliver fresh produce, dairy, meat, and other essentials. Trucks are not just a convenience—they are the only viable option.

Seth Gottlieb of Baldor Specialty Foods underscored the impact on small businesses: “Most independent restaurants and foodservice operators already operate on razor-thin margins. Adding congestion pricing fees will either force them to increase prices or risk going out of business. Either way, New Yorkers lose.”

Baldor Specialty Foods congestion pricing
Baldor Specialty Foods congestion pricing

Additionally, some logistical hurdles, such as noise restrictions, prevent nighttime deliveries as an alternative to peak-hour congestion fees. The policy’s one-size-fits-all approach ignores these practical realities.

“Every menu decision is tied to operational costs,” Gottlieb explained. “If congestion pricing forces higher delivery costs, restaurants may need to rethink everything from beverage choices to pricing strategies.”

The implications extend beyond restaurants to schools, hospitals, and food relief organizations. Rising food prices could hinder access to healthy options, disproportionately affecting vulnerable populations.

O’Neil added, “Higher costs mean fewer resources for food banks and nonprofits that rely on affordable deliveries to serve those in need. This policy could undo years of progress in fighting food insecurity in New York City.”


What Can You Do to Help?

With time running out, foodservice operators, distributors, and concerned citizens must act. Governor Hochul’s congestion pricing plan is set to go into effect on January 4, 2025, making it crucial to raise awareness and demand a food distributor exemption now.

Here’s how you can make a difference:

  1. Sign the Letter: CLICK HERE to view a form letter addressed to Governor Hochul advocating for a “Congestion Distributor/Vendor Exemption.” Open the letter, sign it, and share it with others in the industry.
  2. Contact Legislators: BELOW is a list of New York City and Albany legislators’ phone numbers and emails to voice your concerns. Urge them to support the exemption.
  3. Spread the Word: Encourage fellow restaurant and foodservice professionals to join the coalition led by the distributors and vendors. The broader the support, the greater the impact.

New York City’s food culture is a cornerstone of its identity, from neighborhood eateries to world-renowned restaurants. However, this identity—and the livelihoods of thousands—is at risk if congestion pricing moves forward without consideration for the essential role of food distributors.

“This isn’t about opposing progress,” said Gottlieb. “It’s about finding a balance that keeps New York fed, its small businesses thriving, and its public health goals intact.”

Act now to help protect the city’s food system and ensure that every New Yorker—from students to seniors—continues to have access to the meals they depend on.


New York State Leadership

Governor Kathy Hochul
Governor of New York State
NYS State Capitol Building

Albany, NY 12224
Phone: 1-518-474-8390 
Fax: 518-474-3767
Contact Form

Lt. Governor Antonio Delgado
Lt. Governor of New York State
NYS State Capitol Building

Albany, NY 12224
Phone: 1-518-474-8390 
Fax: 518-486-4170
Email: LGNY@exec.ny.gov

United States Senators for New York

Kirsten Gillibrand
United States Senator for New York
780 Third Avenue, Suite 2601
New York, NY 10017
Phone: 212-688-6262
Fax: 866-824-6340
Website for Kirsten Gillibrand

Chuck Schumer
United States Senator for New York
780 Third Avenue, Suite 2301
New York, NY 10017
Phone: 212-486-4430
Fax: 202-228-2838
Website for Chuck Schumer

New York City

Mayor Eric L. Adams
City Hall
New York, NY 10007
Phone: 212-788-3000
Send Online Message

Your U.S. Representatives and Representatives in Albany

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