New York congestion pricing to start Jan. 5
New York Gov. Kathy Hochul, speaking Nov. 14, 2024 in New York City, announced her plan to begin the state's congestion pricing program for Manhattan on Jan. 5, 2025, with tolls lower than previously planned. · SmartCities Dive · Retrieved from <a href="#" target="_blank">Governor Kathy Hochul/YouTube</a>.

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UPDATE: Nov. 18, 2024: The New York Metropolitan Transportation Authority board of directors approved the revised congestion pricing plan for Manhattan during a Nov. 17 meeting, allowing the program to be implemented at midnight Jan. 5, 2025. From 2025 to 2027, tolls will be 60% of the amount approved earlier this year, rising to 80% from 2028 to 2030 and to 100% in 2031. For most passenger vehicles entering Manhattan at or below 60th Street during peak hours, the rates will be $9 for the first three years, $12 for the following three years and $15 from 2031 onward.

Jamie Torres-Springer, president of MTA Construction and Development, said during the meeting that the projected funding from the tolling program will enable the transit agency to restart tunnel construction for the Second Avenue subway expansion, which was halted in June. In addition, the MTA will go forward with the purchase of more than 250 electric buses by the end of this year, upgrade signal systems on the city’s subways and begin work on 23 more subway stations to improve access for those with limited mobility. 

Dive Brief:

  • New York Gov. Kathy Hochul announced on Thursday that the state’s congestion pricing program for Manhattan will begin at midnight on Jan. 5, 2025, subject to approval by the New York Metropolitan Transportation Authority’s board of directors. The board will meet Nov. 18.

  • Under pressure to revive the tolling plan following the election of Donald Trump, who has expressed his opposition to congestion pricing, Hochul said Thursday that she lowered the base toll for most passenger vehicles entering Manhattan at or below 60th Street from $15 to $9.

  • Although advocates praised Hochul for reinstating the program, which she had halted indefinitely on June 5, the president-elect, House Republicans and some New Jersey Democrats remain opposed to the plan.

Dive Insight:

New York’s congestion pricing program originates from a 2019 state law with twin goals of relieving traffic congestion in Manhattan’s central business district while generating revenue to support the MTA’s capital investments. “I'm proud to announce we have found a path to fund the MTA, reduce congestion and keep millions of dollars in the pockets of our commuters,” Hochul said in a Nov. 14 live-streamed video. The governor also said that the reduced toll charge “is enough to secure the $15 billion in MTA funding that congestion pricing was intended to support.”