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Salon
Salon
6 Jan 2025
By Natalie Chandler Money Editor Published January 6, 2025 2:19PM (EST)


NextImg:Will congestion pricing work in NYC?

Congestion pricing began in New York City on Sunday in a bid to ease traffic and pollution and raise money for public transit upgrades.

The initiative, the first of its kind in the U.S., charges most drivers $9 during peak hours. It affects vehicles entering Manhattan south of 60th Street and covers areas that are typically clogged with traffic, including Times Square, the theater district, Hell's Kitchen, Chelsea and SoHo. And it could provide a guide for other congested cities.

New York City had the world's worst traffic in a 2023 scorecard from INRIX, a transportation data analytics firm. 

Congestion pricing was an idea born in New York City, conceived by Columbia University professor William Vickrey in the 1950s, The New York Times reported. It has been used in London, Stockholm and Singapore, but didn't gain enough momentum in New York until the State Legislature approved it as part of the 2019 state budget, per The Times. 

Gov. Kathy Hochul initially proposed a $15 charge for passenger vehicles to begin last June. She then canceled the start of the program, saying it could hurt the city's economy. Facing pressure from transit advocates, Hochul revived congestion pricing in November with the reduced fee of $9. Motorcyclists will pay less, while commercial truck drivers will pay up to $21.60. Discounts are offered overnight to all drivers. 

Transit officials expect the program will reduce the number of vehicles in the area by at least 13%, and that it will raise $15 billion to pay for repairs to subways and increase the number of electric buses.

Opponents of congestion pricing say they're not done fighting. The measure has survived several legal challenges so far but could still be upended by pending lawsuits from New Jersey, where officials have challenged environmental aspects of the measure, and from suburban counties surrounding New York City, where drivers have fewer mass transit options and say the toll is unfair.

President-elect Donald Trump, who has said congestion pricing could hurt the city's tourism and business industries, has pledged to end it when he takes office on Jan. 20.

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