Feds Greenlight NYC Congestion Pricing Plan, Paving Way for Tolls to Start on Jan. 5

The plan to charge a $9 toll as drivers enter Manhattan below 60th Street takes another major step forward, over the protests of many commuter advocates.
Feds Greenlight NYC Congestion Pricing Plan, Paving Way for Tolls to Start on Jan. 5
Commuters wait to drive through the Holland Tunnel into New York City during morning rush hour traffic in Jersey City, N.J., on March 8, 2023. Ted Shaffrey/AP Photo
Michael Washburn
Updated:

NEW YORK–Congestion pricing took another step toward becoming a daily reality for New York City on Friday, as the Federal Highway Administration (FHWA) signaled its approval of the plan to charge a base toll of $9 for entering Manhattan below 60th Street.

After many months of wrangling, including lawsuits from proponents of the policy seeking to reverse a pause placed on it and vigorous opposition from lawmakers whose constituents commute to work in the city, the congestion pricing scheme made several advances in just a few days.

On Nov. 12, New York Gov. Kathy Hochul indicated she planned to reverse the pause she placed on the policy in June. Two days later, the governor made her new stance official, announcing at a press conference that congestion pricing would take effect on Jan. 5, 2025, with a $9 toll instead of the $15 originally envisioned.

Days after Hochul’s about-face, congestion pricing cleared another significant hurdle on Nov. 18 as the Metropolitan Transportation Authority (MTA) voted 12–1 to approve the plan.

The governor said at a June press conference that she was aware of the burden that congestion pricing represents for many people. Besides cutting the amount by 40 percent from $15 to $9, the new plan offers modest concessions to those who say the toll is impracticable for working people.

It includes discounts for commuters who make under $50,000 per year, which take effect after their 10th commute within a given month. In addition, the toll drops to $2.25 between 9 p.m. and 5 a.m. on weekdays and 9 p.m. and 9 a.m. on weekends.

However, the toll is set to increase to $12 in 2028 and $15 in 2031, the amount originally proposed.

Congestion pricing advocates say the policy is necessary for the city to qualify to receive $15 billion worth of bonds to undertake wide-scale repairs and refurbishments to its mass transit systems. These include the addition of elevators for people with disabilities and the rollout of the long-delayed Phase 2 of the Second Avenue subway. The policy is also meant to relieve rush-hour congestion and environmental impacts.

But opponents, including prominent members of both major political parties, have denounced the plan for the burden they say it will place on citizens already grappling with inflation. Some even question whether it will really relieve traffic on the streets at all. Still, others ask whether the funding needs of the MTA, an organization with nearly $50 billion in debt, should take precedence over the economic priorities of neighboring states’ transit agencies and systems.

The FHWA has been vocal about its support for congestion pricing, dedicating a page on its website to explicating the purported benefits.

According to the FHWA, these benefits include “reducing delays and stress,” “increasing the predictability of trip times,” and “allowing for more deliveries per hour for businesses.”

On the same page, the FHWA mentions how the city of London is dealing with congestion pricing, stating that its implementation there both increased the use of buses in the city and relieved delays on bus routes.

The FHWA does not acknowledge the criticisms of London’s plan that have come from prominent figures in New York politics, such as City Councilman Joseph Borelli, a Republican who represents Staten Island’s South Shore.

Borelli has called London’s congestion pricing schemes “a complete disaster” that have contributed to, rather than relieved, traffic snarls in the city.

Representatives for the FHWA did not respond by publication time to a request for comment.

Michael Washburn
Michael Washburn
Reporter
Michael Washburn is a New York-based reporter who covers U.S. and China-related topics for The Epoch Times. He has a background in legal and financial journalism, and also writes about arts and culture. Additionally, he is the host of the weekly podcast Reading the Globe. His books include “The Uprooted and Other Stories,” “When We're Grownups,” and “Stranger, Stranger.”