ECNETNews Update: New York City’s congestion pricing initiative has been suspended following a recent decision from federal authorities. This program aimed to alleviate traffic congestion and generate funding for public transit by imposing tolls on vehicles entering specific areas of Manhattan.
Initiated on January 5, the congestion pricing system employed license plate recognition technology to charge a toll of $9 for most passenger vehicles entering neighborhoods south of Central Park. Transit officials reported early signs of traffic reduction since the implementation of the toll.
This toll is in addition to existing fees for using bridges and tunnels to access Manhattan. For instance, drivers commuting from New Jersey during peak hours face tolls that can reach $31.81, or as low as $22.06 with E-ZPass enrollment.
U.S. Transportation Secretary Sean P. Duffy issued a statement confirming the federal government’s reversal on approving the congestion pricing program, labeling it as detrimental to working-class citizens and small business owners. He indicated that his agency will collaborate with state officials for an “orderly termination” of the tolls.
Similar congestion tolling systems are prevalent in major cities worldwide such as London, Stockholm, and Singapore, but this initiative marked the first such attempt in the United States.
Previously, Trump had expressed his intention to dismantle the tolling plan upon taking office, denouncing it as an excessive tax that would impede New York City’s recovery.
The revenue generated from the tolls was projected to significantly bolster the city’s struggling transit system, which serves approximately 4 million riders each day.
While proponents of the tolling plan, including transit advocates and environmental groups, praised it as a forward-thinking measure to decrease air pollution and enhance street safety, many vehicle owners—especially those in suburbs with limited subway access—opposed the initiative due to its high costs.
Moreover, New Jersey Governor Phil Murphy had actively opposed the tolls and requested Trump to terminate the program on Inauguration Day. New York Governor Kathy Hochul also raised concerns over its potential economic impact, initially halting its rollout before reviving it at a reduced rate of $9 for passenger vehicles.
Approved by New York lawmakers in 2019, the toll plan faced delays for a crucial federal environmental review that only resumed under the Biden administration.
The congestion fee structure varied based on vehicle size and time of day, with larger vehicles incurring higher charges, while fees dropped to $2.25 for most cars during late-night hours.
Despite multiple legal challenges, including lawsuits from New Jersey officials and various interest groups, the tolling plan was determined to proceed prior to its suspension.
