New York Governor Kathy Hochul is set to implement a $9 toll on most vehicle trips into New York City, a reduction from the previously proposed $15 toll that was initially suggested by the Metropolitan Transportation Authority (MTA) but scrapped before the November elections. The congestion pricing plan aims to raise funds for mass transit, ease traffic congestion, and reduce air pollution. Hochul’s decision to lower the toll was likely influenced by political considerations, as it was intended to improve the chances of Democratic candidates in competitive suburban U.S. House races. As a result, voters in areas where Democrats flipped three Republican-held seats will now be subject to the toll. This new congestion pricing initiative is slated to begin in January, making New York the first U.S. city to introduce such a system. President-elect Donald Trump has strongly criticized the plan.
Officials representing commuters, including New Jersey Governor Phil Murphy and the head of the city’s teachers’ union, have sued to block the program and claimed that it had not been adequately studied. Murphy indicated that “the vast majority of Americans are experiencing severe economic strains and still feeling the effects of inflation.” At least nine lawsuits have been filed against congestion pricing by opponents, including Governor Murphy and the Trucking Association of New York. The lawsuits are still pending and some of the opponents are continuing to fight so the courts could potentially halt or delay the program.
Critics argue that congestion pricing imposes an additional tax burden on people who must drive into Manhattan for work but lack viable mass transit alternatives, potentially pushing traffic to other areas. While wealthier drivers may be less affected by the toll, for many others, it represents a financial strain. The Metropolitan Transportation Authority (MTA) conducted a lengthy environmental review, which included public hearings, and now estimates that the revised program will generate $500 million annually, down from the $900 million anticipated with the $15 toll. This revenue is earmarked for funding $15 billion in capital projects, although implementation could take longer. Over $500 million has already been spent on the program, primarily for the installation of cameras and tolling technology.
A lawyer representing New Jersey in its lawsuit against the Federal Highway Administration, which approved the program, has urged for a swift ruling. The Federal Highway Administration, a part of the U.S. Department of Transportation, was notified by the state of the lower tolls structure, and the agency “is working expeditiously to finalize the needed steps to complete the agreement” to levy the tax before President Biden steps down.
President-elect Trump, who has long been critical of the plan, called it a “disaster” and is receiving support from several Republicans, including Congresswoman Nicole Malliotakis, who have asked him to block the program. If the tolls are not in place by the time he takes office, Trump could direct federal officials to withhold approval, and if the program proceeds, he could attempt to withdraw federal support or threaten to cut funding for New York City, which may result in further legal battles.
Program Details
Under the plan, drivers will pay a fee to enter a designated congestion zone, extending from 60th Street to the Battery, which encompasses famous areas such as Times Square, SoHo, and Hell’s Kitchen. However, vehicles traveling along Franklin D. Roosevelt Drive and the West Side Highway would not incur tolls as long as they stay on these major roads.
Tolls will vary by time of day, with the highest charges during peak hours from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends. Off-peak times will see tolls discounted by 75 percent to encourage travel during quieter hours. Passenger cars will be charged $9 during peak times and $2.25 during off-peak hours. Motorcycles will pay $4.50 during peak hours and $1.05 off-peak, due to their smaller size and lower contribution to congestion. Smaller commercial vehicles and some buses will face a toll of $14.40 at peak times and $3.60 off-peak, while larger trucks and tour buses will pay $21.60 during peak hours and $5.40 at other times. These businesses will likely increase their prices to offset the tolls.
For-hire vehicles, including taxis and ride-sharing services like Uber and Lyft, will impose a per-ride surcharge for trips within or through the congestion zone. This surcharge will be 75 cents for taxis and $1.50 for ride-sharing services.
Tolls will primarily be collected via the E-Z Pass system, though drivers without an E-Z Pass will be charged higher rates. Cameras will capture their license plates, and they will receive a bill by mail.
Certain exemptions include vehicles carrying people with disabilities or emergency vehicles, which will not be charged. Residents within the congestion zone may qualify for a state tax credit equivalent to their toll costs. Low-income drivers will also have the option to register for a 50 percent discount on all trips into the zone after the first 10 trips in a month. Additionally, drivers entering Manhattan through four existing toll tunnels — the Lincoln, Holland, Hugh L. Carey, and Queens-Midtown tunnels — will receive a proposed $3 credit toward the daily congestion charge during peak hours.
Conclusion
New York Governor Kathy Hochul is again instituting congestion pricing into New York City, which she had scuttled before the election to flip some NY seats from GOP to Democrat control. The new congestion pricing plan would start in January if all approvals are obtained by then with the cost for most passenger cars at $9—lower than the original $15 in the earlier plan. The U.S. Department of Transportation must approve the project so there is a rush to do so before President Biden steps down. The proceeds are to be used for mass transit funds in New York City where $15 billion worth of capital projects are planned. The state has already invested half a billion dollars in the congestion pricing program for cameras and tolling software. President-elect Trump is against the program and may take action to scuttle it when he becomes President.
