Congestion pricing went into effect in the heart of New York City on Sunday, despite a late-night court challenge by officials in neighboring New Jersey.
The proposal, which charges many cars $9 to enter Manhattan during peak hours, is designed to provide respite to the country’s most populous city. According to traffic-data research firm INRIX, New York had the world’s worst traffic in 2023, with drivers losing 101 hours during peak commute times.
Advocates claim the new levy, which is the first of its type in America, would reduce traffic congestion, improve air quality, and help raise $15 billion for renovations to New York’s struggling transportation system.
Some think that the move will lower the number of road fatalities in the city. More than 250 people were killed in automobile accidents in New York City in 2024, including 115 pedestrians.
Others, including President-elect Donald Trump, have hinted that they will not give up battling it.
Most drivers will be charged using their E-ZPass, which is an electronic toll collecting system utilized in numerous states. Electronic detection stations have been installed at the entrances and exits of the tolling zone. Anyone without an E-ZPass will have a bill mailed to the registered owner of the car.
The program is modeled after comparable projects in major cities such as London, Singapore, and Stockholm, where the concept has proven successful in decreasing traffic and encouraging public and alternate forms of transportation.
New York Governor Kathy Hochul halted the scheme six months ago, claiming the original price of $15 per day was too high, before returning it at the new lower amount. If the fee is successful, peak prices are expected to rise to $12 by 2028 and $15 by 2031.
Drivers must cross numerous bridges and tunnels to enter Manhattan, in addition to the $9 fee. Those who have previously paid to enter the city through particular tunnels during peak hours will receive a credit of up to $3.
The charge applies to automobiles entering Manhattan between 60th Street and the Battery, which includes popular districts such as the theater district, Times Square, Hell’s Kitchen, Chelsea, and SoHo. It began on a Sunday to give the Metropolitan Transportation Authority adequate time to work out any problems during a day when traffic is lighter than usual.
Drivers of smaller commercial trucks and some buses, as well as larger trucks and tour buses, pay higher rates than motorcyclists.
In addition, passengers in taxis and other for-hire cars, including Ubers, will be charged a premium for each fare to, from, within, or through the congestion zone. The premium for a taxi, green cab, or black automobile is 75 cents, whereas Uber or Lyft costs $1.50.
There are a few exemptions and discounts. Authorized emergency vehicles and cars transporting individuals with disabilities are not charged, and some households living inside the zone may be eligible for a state tax credit. Furthermore, low-income drivers are eligible for a 50% discount after their first ten journeys per month.
The plan has split New Yorkers. Queens resident Jessame Hannus told Gothamist that it was a “really important step,” adding, “I think it’s important in this country, in this time in our world, to think about the climate.” Others, such as Michael Alvarez, vehemently opposed the concept.
“I don’t think us New Yorkers, we deserve this,” stated the man. “Especially when they promise safer subways but do nothing about it. They’re charging us so much for what? “For nothing.”
The idea has been debated for decades. At least ten lawsuits have been filed over congestion pricing, including a last-ditch effort by the state of New Jersey to have a judge issue a temporary halt to it, which failed on Saturday after a federal appeals court upheld an earlier finding against the state’s claim.
Reference: Congestion pricing begins in NYC in a high-stakes test for the model’s U.S. viability
