Pedestrians cross a street past traffic in the Midtown neighborhood of New York, US, on Saturday, June 17, 2023. New York City’s congestion pricing plan for the central business district is expected to receive final approval this month.
Bloomberg | Bloomberg | Getty Images
Following the clearance of New York City to implement a congestion pricing plan, Governor Kathy Hochul emphasized on Tuesday that the city is setting an example for achieving “cleaner air, safer streets, and better transit.”
The Federal Highway Administration, a division of the U.S. Department of Transportation, granted the green light for New York to proceed with its congestion management plan, primarily through tolls in specific areas of Manhattan.
The program is expected to be implemented by the spring of 2024 and will be the first of its kind in the United States, according to the Metropolitan Transportation Authority (MTA) of New York. State agencies have been given 310 days to establish the tolling program and associated infrastructure.
During a press conference, Hochul stated, “We will be the first state in the nation, the first city in America, to have a congestion pricing plan. Other cities will be watching us. They will be paying attention to how it works here, and we will demonstrate how it’s done.”
While congestion pricing plans are new to the U.S., they have previously been implemented in London, Stockholm, and Singapore.
The specific toll rates are still under consideration. A six-member Traffic Mobility Review Board has been assigned the task of determining the pricing structure.
In a report published last August, toll rates were proposed to range from $9 to $23 during peak times, $7 to $17 during off-peak times, and $5 to $12 overnight.
Pedestrians cross a street past traffic in the Midtown neighborhood of New York, US, on Saturday, June 17, 2023. New York City’s congestion pricing plan for the central business district is expected to receive final approval this month.
Bloomberg | Bloomberg | Getty Images
The toll area will cover a significant portion of Manhattan’s central surface roads. Cars will be tolled south of 60th Street, but not on FDR Drive along the East Side or the West Side Highway. Additionally, there will be no tolls in the Battery Park Underpass or on any surface roads connecting to the West Street through the Hugh L. Carey Tunnel, as per the MTA.
Tolls will be collected through E-ZPass. For vehicles without E-ZPass, bills will be sent to the registered vehicle’s address, as stated by the MTA.
The congestion pricing plan, known as the Central Business District Tolling Program, has been jointly developed by the MTA, the New York State Department of Transportation, and the New York City Department of Transportation. Its objectives include reducing congestion in Manhattan, improving air quality, and generating revenue for the city’s public transportation system.
Prior to the Covid pandemic, approximately 700,000 vehicles entered the central business district per day. Traffic dropped to just 10% of normal volume in 2020 but has since recovered to over 90% of pre-pandemic levels, surpassing the recovery in mass transit ridership, according to the MTA.
The MTA Reform and Traffic Mobility Act, passed in April 2019, mandated the implementation of the congestion pricing plan. It also included certain provisions, such as ensuring that passenger vehicles are only charged once per day for entering the area. Residents of qualifying neighborhoods with an income below $60,000 will be eligible for a state tax credit. The act also requires lower overnight toll rates compared to peak costs and the availability of discounts for low-income drivers.
Janno Lieber, CEO of the MTA, stated during the press conference that the plan underwent an extensive 4,000-page environmental assessment to gain federal approval.
“They thoroughly examined every aspect,” said Lieber. “We analyzed nearly every intersection, extending our study all the way to Philadelphia. The assessment encompassed air quality and all the potential effects. The outcome of this groundbreaking and historic initiative, as per federal environmental law, is deemed to have an insignificant impact on the 28 million people in the region. That’s what this signifies.”
However, some Democratic lawmakers from New Jersey are discontented with the plan and its associated costs.
In a joint written statement published on Tuesday, Representatives Josh Gottheimer and Bill Pascrell, along with Senator Bob Menendez, criticized the plan as a means for New York to fund the MTA at the expense of hard-working families in New Jersey.
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