New York City’s Congestion Pricing Plan Starts on Jan. 5: Everything You Need to Know

Cars pass under a congestion pricing warning sign on George Washington Bridge as congestion pricing takes effect in New York City on Jan. 5, 2024. Kena Betancur/AFP via Getty Images

On Jan. 5, 2025, the long-debated and fiercely contested policy of congestion pricing comes into effect in New York City.

With its passionate supporters and equally vocal detractors, the practice is expected to have far-reaching consequences for commuters, the transit system, the city, and the environment.

With the implementation of congestion pricing, the Metropolitan Transit Authority (MTA) hopes to raise money for highly ambitious upgrades to New York City’s aging transit systems.

Here are answers to commonly asked questions about congestion pricing, what it portends, and why the policy still has outspoken proponents and detractors.

What Is Congestion Pricing?

Congestion pricing is a policy of charging a standard $9 fare to drivers of cars, SUVs, small vans, and pickup trucks entering Manhattan below 60th Street from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends.

Does the Fare Vary?

Yes, the MTA has devised a detailed plan with many pricing levels depending on vehicle type and the time of entry.

From 9 p.m. to 5 a.m. on weekdays and from 9 p.m. to 9 a.m. on weekends, the $9 fare goes down to $2.25 for drivers of cars, SUVs, small vans, and pickup trucks.

Small trucks and buses will pay $14.40 during peak hours and $2.25 during non-peak hours. For motorcycles, the fare is $4.50 during peak and $1.05 during non-peak times.

Trucks, buses, taxis, and Ubers are also covered under the pricing schedule.

Commuters with an annual income of less than $50,000 can take advantage of discounted pricing after their 10th commute in a given month.

In 2028 and subsequent years, the fares will go up, subject to the governor’s and the MTA’s approval.

Was $9 Always Envisioned?

No. The standard fare was originally set to be $15, but supporters of the scheme hit a political roadblock, as advocates for commuters argued that amount was too high for the average worker to meet.

Why Is It Taking Effect in January?

Congestion pricing has been the subject of a protracted political and legal battle. New York Gov. Kathy Hochul has wavered on when it should start.

After having put a pause on the policy’s implementation, and having acknowledged at a June 2024 press conference that working families might have trouble paying a new $15 toll every day, Hochul reversed course.

At a Nov. 14 press conference, she announced that congestion pricing would come into effect in January with the lower $9 fare.

On Nov. 18, the Metropolitan Transit Authority Board gave its imprimatur to the revised policy, voting 12–1 to approve the January start date.

New York Gov. Kathy Hochul addresses the media during a press conference in New York City on March 13, 2023. Yuki Iwamura/AP Photo

What Is Its Goal?

Advocates of congestion pricing say that it will help fund 23,000 jobs in New York state.

Supporters also argue that the plan is necessary so that the city will be solvent enough to qualify for the issuance of $15 billion worth of bonds.

Those funds will go toward repairing, refurbishing, and upgrading New York City’s mass transit systems, including the installation of elevators in subway stations in compliance with the letter and spirit of the Americans With Disabilities Act.

According to Brian Fritsch, associate director of the Permanent Citizens Advisory Committee to the MTA, it should soon be possible to add 23 new elevators to the transit system, making it much more user-friendly for persons with disabilities.

The governor also expects funding to become available for the continued expansion of the Second Avenue subway, electric buses, new signals, and other transit-related investments.

Moreover, supporters argue that encouraging drivers to find alternate means of transportation into the city, such as bicycles, carpooling, and mass transit as opposed to cars, will help relieve toxic emissions and keep the city’s air breathable.

Why Is Congestion Pricing Controversial?

Far from everyone regards congestion pricing as a just and workable solution to the need for overhauls, upgrades, and cleaner air.

Many opponents of the policy have framed their objections in terms of the severe impact they believe it will have on commuters.

City Councilman Joseph Borelli, a Republican representing Staten Island’s south shore, has made a case that the implementation of congestion pricing in London has been a “complete disaster” and has only made gridlock on that city’s streets far worse.

New York City is likely to experience similarly disappointing results, Borelli has argued, citing recent research from INRIX, an organization that studies global traffic patterns and that has found London to have some of the worst traffic on the planet.

The policy has also faced opposition from lawmakers whose districts overlap with New York City suburbs, and whose constituents will now find commuting into the city significantly costlier.

Others, such as Jack Nierenberg, vice president of the transit advocacy organization Passengers United, have criticized the MTA for seeking to place an expanded fiscal burden on commuters without having dealt with internal mismanagement that has allowed it to accrue nearly $50 billion in debt.

In Nierenberg’s view, the failure to hold contractors to account has contributed to a snowball effect that has seen the MTA’s debts grow fourfold in the past two decades.