Federal Government Approves NYC Congestion Pricing Plan, Allowing Tolls to Begin on Jan. 5th

NEW YORK–Congestion pricing in New York City took a significant step forward on Friday with approval from the Federal Highway Administration (FHWA) to implement a $9 toll for entering Manhattan below 60th Street.

After facing opposition from various groups, including lawsuits and resistance from lawmakers, the congestion pricing plan saw progress within a short span of time.

Subsequently, on Nov. 18, the Metropolitan Transportation Authority (MTA) approved the plan by a vote of 12–1.

Governor Hochul acknowledged the financial strain congestion pricing may pose to many individuals. To address concerns, the plan now includes discounts for commuters earning under $50,000 annually, activated after their 10th commute within a given month. Additionally, the toll will decrease to $2.25 during off-peak hours.

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The toll is scheduled to increase to $12 in 2028 and $15 in 2031, returning to the original proposal.

Proponents of congestion pricing argue that it is essential for the city to secure $15 billion in bonds for crucial transit infrastructure improvements. These enhancements encompass installing elevators for accessibility and advancing the Second Avenue subway project. The policy aims to alleviate rush-hour congestion and environmental impacts.

However, critics, including influential figures from both political parties, criticize the plan for its potential financial strain on residents already facing inflation. Some doubt its efficacy in reducing traffic, while others question prioritizing MTA’s funding needs over neighboring transit agencies.

The FHWA has expressed support for congestion pricing, highlighting its benefits such as reducing delays, enhancing predictability in travel times, and enabling more deliveries for businesses.

They also mention the success of congestion pricing in London, which increased bus usage and reduced delays on bus routes. However, some New York politicians, like City Councilman Joseph Borelli, have criticized London’s congestion pricing as ineffective in alleviating traffic issues.