New York plans to revive a $9 congestion mitigation fee for driving in Manhattan starting in January that the state postponed indefinitely earlier this year, New York Gov. Kathy Hochul said Thursday.
New York City’s congestion pricing program, the first of its kind in the United States, initially imposed a $15 fee during daylight hours on passenger cars traveling in Manhattan south of 60th Street starting June 30 before Hochul suspended it indefinitely.
Hochul said the new base fare for commuter vehicles will be $9 — 40% lower than initially announced — and is needed to make new investments in New York’s subways and buses. The proceeds will support $15 billion in debt financing to improve mass transit, she said.
Trucks and buses are expected to pay more, and there will be a discount for travel outside peak hours.
Hochul said the funding will help “begin to reduce inertia and emissions, as intended, and will achieve significant environmental improvements.”
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The Metropolitan Transportation Authority, used by about 6 million people daily, is expected to vote next week to approve the fees.
The MTA said congestion pricing would reduce traffic by 17%, improve air quality, and increase mass transit use by 1% to 2%. Following the delay, the MTA said in June that it had decided to suspend capital projects worth $16.5 billion.
A US Department of Transportation spokesman said New York has notified the Federal Highway Administration of updated plans to move forward with the project with tolls starting at $9 for passenger cars. The agency is finalizing the steps necessary to complete an agreement to allow the program to go into effect.
Hochul cited high inflation and a desire not to deter passengers or tourists due to surcharges for her decision to halt implementation.
London implemented similar fees in 2003.
A group of five New York Republicans in the US House of Representatives this week urged incoming President Donald Trump to drop the charge, calling on him to end “this ridiculous jam that prices cash.” Trump’s spokesman did not immediately comment.
Trump has pledged to end congestion pricing once he returns to the Oval Office in less than two months.
In 2019, state lawmakers approved a plan to help fund improvements to mass transit using tolls to manage traffic in New York City, the most congested of any American city.
New York says more than 900,000 vehicles enter Manhattan’s central business district daily, reducing travel speeds to about 7 miles (11 km) per hour on average.
