New York City’s new congestion pricing program generated $48.6 million in revenue during its first month, the Metropolitan Transportation Authority (MTA) announced. Launched on January 5, the program aims to reduce traffic and fund transit improvements by charging most passenger vehicles $9 during peak hours to enter Manhattan south of 60th Street. Trucks and buses pay up to $21.60, with nighttime fees reduced by 75%.
After $11.1 million in expenses, the net operating revenue for January was $37.5 million. The MTA projects it will raise $500 million in net revenue within the first year, even though only 27 days of revenue were collected in January.
Of the total revenue, 68% came from passenger vehicles, 22% from taxis and rideshares, 9% from trucks, and 1% from motorcycles and buses.
Governor Kathy Hochul recently met with President Donald Trump, urging him to support the program, which was approved during President Joe Biden’s administration. However, the MTA has sued to block Trump’s effort to halt the initiative.
The funds raised are crucial for securing $15 billion in debt financing for mass transit projects. The MTA has already issued $900 million in debt for system infrastructure and capital improvements.
Congestion pricing has been adopted in other global cities like London, which introduced its system in 2003 and now charges £15 ($18.70). Singapore and Sweden also have similar programs.
Before the fee, more than 700,000 vehicles entered Manhattan’s central business district daily, slowing traffic to an average of 7 mph — 23% slower than in 2010.
Cars are charged once per day via electronic license plate readers, regardless of how many trips they make.
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