NYC’s congestion pricing federally approved at lower toll value

Curb-to-curb traffic in New York City, New York, US. (Image: Adobe Stock)

Back in June, the city’s plan to charge motorists a US$15 toll for driving into and through high-traffic portions of Manhattan was cancelled abruptly by New York State Governor Kathy Hochul. The governor said the toll would be a financial burden to the city’s residents.

The announcement came in early June, with congestion pricing expected to go live by the end of the month.

Hochul’s about-turn put the New York Metropolitan Transportation Authority (MTA) into a panic over how to fund more than $16-billion worth of commitments to its public transit infrastructure. Portions of the income collected from tolls from the congestion pricing programme were to be allocated for the MTA to make various upgrades to its services.

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But earlier this month, Hochul said she would support a toll plan set at $9, which fast-tracked discussion and ultimately approval of the newly proposed system by both the MTA and US government.

The new plan comes with escalation fees, however, with the toll expected to rise to $12 in 2028 and $15 in 2031.

Altogether, MTA expects to receive $15 billion via the pricing plan to fund its various construction projects including accessibility improvements, station expansion and modernisation. 

In addition to providing funding for the transit authority, the toll plan was also thought to help the city’s sustainability and climate goals and also reduce traffic overall in Manhattan.

What’s next for NYC congestion pricing?

The system is expected to start early in the new year.

New York Governor Kathy Hochul

The programme’s fragility remains in the near-term, though.

While the nation transitions from one executive administration to another from Democrat Joe Biden to Republican Donald Trump, there are some who believe the latter – who has been a vocal opponent of congestion pricing – could lead a charge to cancel, yet again, NYC’s proposed tolling system.

Notably, elected officials from Long Island, New York – which represent a large number of Manhattan commuters – said they intend to lobby the US Congress and future President Trump to put an end to congestion pricing.

A legal challenge would likely be required should a group decide to oppose the programme. No tangible timeline for that action is available at this time.