Small Businesses Push Back on New Thruway Surcharge

By Y.M. Lowy

Hundreds of businesses urged Governor Kathy Hochul on Wednesday to block a new fee they argue amounts to a “backdoor toll increase,” even as Thruway officials insist the charge targets corporate middlemen, not drivers.

The issue centers on a 1% surcharge set to begin in January on tolls paid through third-party billing companies known as toll management service providers. These companies handle toll payments for trucking fleets and bill them later, aiming to simplify accounting for businesses with many vehicles.

A coalition led by Fleetworthy sent Hochul a letter opposing the new fee, warning it will raise prices on groceries, building materials, and other goods. They called it a hidden tax that hits small businesses and working families hardest. They are also upset that the Thruway Authority added the surcharge without public notice or a formal process.

Thruway officials noted that the program was announced publicly in October and posted online through the state’s official contract system. Because the fee applies to the vendors themselves and not toll rates for drivers, the officials said no public comment period was required.

The business coalition maintains the fee will be passed down to fleets anyway, adding financial strain to companies already dealing with inflation.

Separate from this dispute, an across-the-board 5% E-ZPass toll increase is scheduled for January 2027.

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