On Sunday, New York City began charging a $9 congestion fee for drivers entering Manhattan south of 60th Street, marking the first such toll in the U.S. Trucks and buses face charges up to $21.60, with a 75% discount at night. Taxis pay 75 cents per trip, while ride-shares like Uber and Lyft are charged $1.50 per trip. The fee, applied via electronic license plate readers, is capped at one charge per day for private cars.
The move aims to reduce traffic and fund mass transit, with an estimated $500 million in first-year revenue projected to support $15 billion in debt financing for subway and bus improvements. The policy, enacted ahead of President-elect Donald Trump’s inauguration, faced opposition from Trump, who vowed to block it. New Jersey unsuccessfully sought a court order to delay its implementation.
NYU transportation expert Sarah Kaufman noted that similar programs in cities like London, which introduced a congestion charge in 2003, initially faced backlash but gained support as traffic eased and transit improved. London’s current fee is 15 pounds ($19).
New York City’s Metropolitan Transportation Authority (MTA) anticipates the new fee will reduce the number of vehicles in the central business district by 80,000 daily—an 11% decrease. With over 700,000 vehicles entering the area each day, traffic speeds average around 7 mph, 23% slower than in 2010.
Governor Kathy Hochul emphasized the critical role of the congestion fee in upgrading mass transit. The MTA highlighted Manhattan as the nation’s most congested district and said the program will help address its severe traffic issues while improving public transportation services.
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