NYC charges congestion fee for peak-hour traffic, a first in US

Jan 06, 2025

The cost to drivers depends on what time of the day it is and if drivers have an E-ZPass, an electronic toll collection system thats used in many states.
New York's new toll for drivers entering the centre of Manhattan debuted Sunday, meaning many people will pay USD 9 to access the busiest part of the Big Apple during peak hours. The toll, or "congestion pricing", is meant to reduce traffic gridlock in the densely packed city while also raising money to help fix its ailing public transit infrastructure.

"We've been studying this issue for five years. And it only takes about five minutes if you're in midtown Manhattan to see that New York has a real traffic problem," metropolitan transportation authority CEO Janno Lieber said Friday after a court hearing cleared the way for the tolls. "We need to make it easier for people who choose to drive, or who have to drive, to get around the city."

The cost to drivers depends on what time of the day it is and if drivers have an E-ZPass, an electronic toll collection system thats used in many states. Most drivers of passenger cars with E-ZPasses will get dinged the USD 9 fee to enter Manhattan south of Central Park on weekdays between 5am and 9pm and on weekends between 9am and 9pm. During off hours, the toll will be USD 2.25. That's on top of tolls drivers pay for crossing bridges and tunnels to get to the city in the first place, although there will be a credit of up to USD 3 for those who have already paid to enter Manhattan via certain tunnels during peak hours.

Motorcyclists will pay USD 4.50 during peak hours and USD 1.05 off-peak. Those driving smaller commercial trucks and some buses will pay a toll of USD 14.4 at peak hours and USD 3.60 at other times. Drivers of larger trucks will be charged USD 21.60 at peak hours and USD 5.40 off-peak.

Prez-elect Donald Trump, a Republican, has vowed to kill the programme when he takes office, but it's unclear if he will follow through. The plan had stalled during his first term while it waited on a federal environmental review. In Nov, Trump, whose Trump Tower is in the toll zone, said congestion pricing "will put New York City at a disadvantage over competing cities and states, and businesses will flee".

Other big cities around the world, including London and Stockholm, have similar congestion pricing schemes, but it is the first in the US. The toll was supposed to go into effect last year with a USD 15 charge, but Democratic governor Kathy Hochul abruptly paused the programme before 2024 election, when congressional races in suburban areas - the epicentre of opposition to the programme - were considered to be vital to her party's effort to retake control of Congress.

Not long after the election, Hochul rebooted the plan but at the lower USD 9 toll. She denies politics were at play and said she thought the original $15 charge was too much. Congestion pricing also survived several lawsuits, including a last-ditch effort from New Jersey to have a judge put up a temporary roadblock against it.