A congestion charge was introduced in central New York City on Sunday after a late attempt by authorities in neighboring New Jersey to stop it failed in court.
The measure — which charges many drivers $9 to enter Manhattan during rush hour — aims to provide relief to the nation’s most populous city. According to traffic data analysis company INRIX, New York had the worst traffic in the world in 2023: drivers lost 101 hours to rush hour traffic.
Advocates say the new tax, which is the first of its kind in America, will reduce traffic congestion, improve air quality and help raise $15 billion to modernize New York’s beleaguered transit system.
Some also hope that this measure will reduce the number of deaths on the city’s roads. More than 250 people died in traffic accidents in New York in 2024, including 115 pedestrians.
But others, including President-elect Donald Trump, have indicated they will not give up the fight against this scourge.
Most drivers will be charged through their E-ZPass, an electronic toll collection system used in many states. Electronic detection points have been created at the entrances and exits of the toll zone. Anyone without an E-ZPass will receive an invoice mailed to the vehicle’s registered owner.
The program follows similar initiatives in busy cities such as London, Singapore and Stockholm, where the concept has proven effective in reducing traffic and promoting public and alternative modes of transport.
New York Governor Kathy Hochul suspended the plan six months ago, saying the initial price of $15 a day was too high, before reintroducing it at the new reduced rate. If this measure succeeds, peak rates are expected to reach $12 by 2028 and $15 by 2031.
On top of the $9, drivers already have to cross numerous bridges and tunnels to enter Manhattan. There will, however, be a credit of up to $3 for those who have already paid to enter the city through certain tunnels during rush hour.
The tax applies to vehicles entering Manhattan between 60th Street and Battery: covering busy areas including the Theater District, Times Square, Hell’s Kitchen, Chelsea and SoHo. It was started on a Sunday to give the Metropolitan Transportation Authority enough time to repair any problems on a day when traffic was quieter than usual.
There are different costs for different vehicles: motorcyclists pay less, while higher rates apply to drivers of small commercial trucks and some buses, as well as larger trucks and tour buses.
Additionally, passengers in taxis and other rental vehicles, including Ubers, will pay extra on each trip to, from, within or through the congestion zone. The surcharge is 75 cents for a taxi, green cab or black car, and $1.50 for an Uber or Lyft.
There are certain exemptions and reductions. Licensed emergency vehicles and vehicles transporting disabled people are not charged, while some residents inside the zone can apply for a state tax credit. Additionally, low-income drivers can sign up for a 50% discount after their first 10 trips per month.
The project divided New Yorkers. Queens resident Jessame Hannus told Gothamist that this was a “really important step,” saying, “I think it’s important in this country, in this time in our world, to think about climate”. But others, like Michael Alvarez, said he hated the plan.
“I don’t think we New Yorkers deserve this,” he said. “They mostly promise safer metros when they don’t even do anything. They make us pay so much money for what? For nothing.”
The idea has been debated for decades. At least 10 lawsuits have been filed over congestion pricing, including a last-ditch attempt by the state of New Jersey to have a judge erect a temporary roadblock against the tax, which failed Saturday after a court Federal appeal upheld an earlier ruling against congestion pricing. the state’s trial.
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