Congestion pricing in New York City will begin next year, Gov. Kathy Hochul announced on Thursday.
The governor, who put the plan on "pause" back in June just weeks before it was supposed to take effect, addressed a path forward on how to fund the MTA with a lower fee congestion toll. The original price to enter Manhattan's most congested area was $15; now it will be $9.
"We're still getting the $15 billion to fund the MTA and drivers are paying $6 less. This lower toll will still allow us to accomplish all -- and I mean all -- of the goals of congestion pricing: new modern signals, the long-awaited Second Avenue subway, new electric busses, elevators, and this will generate major investments for our suburban commuters as well," Hochul said.
Lower-income communities will not only benefit from improved public transit service but also from cleaner air, Hochul added. She said she directed the MTA to make major enhancements to at least 23 bus routes in the outer boroughs.
"The negative effects of traffic can be seen everywhere...New Yorkers want cleaner air, safer streets, and a transit system that works for them," MTA head Janno Lieber said Thursday.
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The new price came after supporters of the plan indicated they would be willing to negotiate on what the toll would cost, as long as it meant the plan got off the ground.
Hochul said the exact start date for congestion pricing is Jan. 5, 2025. The MTA Board is expected to approve the measure next week before final federal sign-off.
Advocacy group Transportation Alternatives, a supporter of congestion pricing, hailed it as a way to bring "safer streets, cleaner air, faster buses, and billions in funding for public transportation" in New York City, saying it was "essential" the program starts as soon as possible.
The governor also has the backing from NYC Comptroller Brad Lander. Prior to Hochul's announcement, Lander said in a statement: “This is a long-awaited win for millions of hard-working straphangers who ride the subway every day. New Yorkers will finally see less traffic, cleaner air, modernized subway signals so trains run on time, and new elevators so everyone can use them.
“We brought our lawsuits to ensure that congestion pricing would go into effect as required by law – and it couldn’t come at a more urgent time. If we don’t get the system in operation before Donald Trump becomes President, we’ll lose $15 billion in critical transit investments that we’ll never see again," Lander's statement goes on to say in part.
“I thank Governor Hochul and the MTA for ending the pause....A toll beginning at $9 and phasing up over time can raise enough revenue to meet the moment, comply with State law and the federally-approved environmental assessment so we’re on solid legal footing, and ensure that the transit infrastructure that New Yorkers rely on will remain viable for generations to come.”
Mayor Eric Adams also backs the governor and has said he's "with the governor on congestion pricing." However, Adams has asked for new exemptions for first responders and transit workers.
Meanwhile, not everyone is on board with the congestion pricing plan. New Jersey Gov. Phil Murphy has long been a vocal opponent of the plan saying New Jersey was not "meaningfully" consulted on the plan that, he says, will impact New Jerseyans who commute to New York.
In a post on X, previously known as Twitter, Murphy said his "administration will continue the fight to block this plan in court."
I am firmly opposed to any attempt to force through a congestion pricing proposal in the final months of the Biden Administration.
— Governor Phil Murphy (@GovMurphy) November 14, 2024
My administration will continue the fight to block this plan in court. pic.twitter.com/WCFXtZkV7w
But opponents are as adamantly against it more than ever. A number of local lawmakers, Republican and Democrat alike, have bashed the controversial toll as a money grab.
"Gov. Hochul’s congestion pricing scheme is nothing more than a massive new tax on working families, daily commuters, college students, and local residents who just want to travel within the city they call home," GOP Congressman Mike Lawler said in a statement.
"There is no way we will allow you to move forward with congestion pricing without a fight," Republican congresswoman Nicole Malliotakis said earlier in the week.
"In a time of inflation, New York’s attempt whack Jersey families with another tax is utterly absurd. I’ll be damned if I am going to let the MTA balance their mismanaged, out-of-control budget at the expense of Jersey taxpayers," said New Jersey Rep. Josh Gottheimer, a Democrat. "We stopped the Congestion Tax once and we’ll stop it again. Game on."
Democrat Gov. Phil Murphy echoed a similar sentiment Thursday despite Hochul's lowered toll price.
How does congestion pricing work?
Congestion pricing would impact any driver entering what is being called the Central Business District (CBD), which stretches from 60th Street in Manhattan and below, all the way down to the southern tip of the Financial District. In other words, most drivers entering midtown Manhattan or below will have to pay the toll, according to the board's report.
All drivers of cars, trucks, motorcycles and other vehicles would be charged the toll. Different vehicles will be charged different amounts.
The full, daytime rates would be in effect from 5 a.m. until 9 p.m. each weekday, and 9 a.m. until 9 p.m. on the weekends. The board called for toll rates in the off-hours (from 9 p.m.-5 a.m. on weekdays, and 9 p.m. until 9 a.m. on weekends) to be about 75% less.
Drivers would only be charged to enter the zone, not to leave it or stay in it. That means residents who enter the CBD and circle their block to look for parking won't be charged.
Only one toll will be levied per day — so anyone who enters the area, then leaves and returns, will still only be charged the toll once for that day.
The review board said that implementing their congestion pricing plan is expected to reduce the number of vehicles entering the area by 17%. That would equate to 153,000 fewer cars in that large portion of Manhattan. They also predicted that the plan would generate $15 billion, a cash influx that could be used to modernize subways and buses.
All of the MTA's 110 toll readers are in place and ready to go.
For some questions, the MTA has a FAQ page so drivers can address more specific questions they may have. For example, can I cross the Brooklyn Bridge into Manhattan and go north on FDR Drive without getting charged?
For other questions, like who is exempt and how they can go about applying for an exemption, keep reading below:
Who is exempt from congestion pricing?
The transit authority opened the application process in April for those groups and individuals seeking to be exempt from having to pay every time they enter Manhattan at 60th Street or below.
As the MTA previously said, the majority of cars likely to get a full exemption from the tolls will be government vehicles. MTA officials said essentially all yellow school buses are in the clear -- that applies to NYC Public Schools, charter and Catholic schools, as well as private schools.
As long as the bus company has a contract with the Department of Education, they are expected to be exempt.
The list also includes NYC-owned fleet vehicles. The MTA has already made it clear that emergency vehicles will be exempt, but so will virtually every city-owned official car. Between the dozens of agencies, there are potentially hundreds, if not thousands, of cars that will qualify.
A third group, commuter buses, will also make the list. The MTA officials said any bus with scheduled service where the public can buy tickets will be exempt, including the Hampton Jitney, Greyhound, Mega Bus and Flix Bus.
Other charter buses, NY Waterway buses and the NYU employee shuttle would not be exempt.
Click here for the MTA's full list of exemptions.
Are there lower rates available for some drivers?
Yes, some drivers will be eligible for a reduced rate.
The MTA said that lower-income New Yorkers can apply to pay for an exemption that allows them to pay half-priced tolls.
Low-income drivers who earn less than $50,000 a year can apply to pay half the price on the daytime toll, but only after the first 10 trips in a month.
Is there any other way to get a discount?
Many groups had been hoping to get exemptions, but very few will avoid having to pay the toll entirely. That small group is limited to specialized government vehicles (like snowplows) and emergency vehicles.
While not an exemption, there will also be so-called "crossing credits" for drivers using any of the four tunnels to get into Manhattan. That means those who already pay at the Lincoln or Holland Tunnel, for example, will not pay the full congestion fee.
Drivers from Long Island and Queens using the Queens-Midtown Tunnel will get the same break, as will those using the Brooklyn-Battery Tunnel. Those who come over the George Washington Bridge and go south of 60th Street would see no such discount, however.
Public-sector employees (teachers, police, firefighters, transit workers, etc.), those who live in the so-called CBD, utility companies, those with medical appointments in the area and those who drive electric vehicles had all been hoping to get be granted an exemption. They did not get one.
What about taxis and rideshares?
There will be exemptions in place for rideshares and taxis, but much to their chagrin, they won't get away completely scot-free.
The toll will not be in effect for taxis, but drivers will be paying a surcharge per ride. The same policy applies to Uber, Lyft and other rideshare drivers.
New York Taxi Workers Alliance Executive Director Bhairavi Desai has said in a statement that the plan is "a reckless proposal that will devastate an entire workforce."
