It’s a global phenomenon — now New York is poised to lead the nation in congestion pricing (2023)

What matters is the bipartisan pushback she’s getting at home and across the Hudson River in New Jersey.

A Staten Island congresswoman fears the city’s most far-flung and car-dependent borough would shoulder much of the cost. A Bronx congressman says the plan would burden low-income communities with more truck traffic and pollution. And New Jersey Gov. Phil Murphy feels so strongly that he’s issued an escalating series of threats, even saying he could halt the operation through a key bi-state agency.

“It’s not going to happen,” Murphy has said of the plan. “If we have to, we’ve got options, which I don’t want to use, but we can use through the Port Authority.”

Rep. Josh Gottheimer (D-N.J.) has threatened to “defund” the Metropolitan Transportation Authority, and introduced legislation along with Staten Island Rep. Nicole Malliotakis (R-N.Y.) to halt the program, which requires federal approval.

But congestion pricing works, and if New York wants to lead the way on this side of the Atlantic, it will need to deal with the pushback, according to an expert with London’s public transit authority, which implemented a similar program in 2003.

(Video) MTA reveals details of controversial congestion pricing plan

“You weren’t just trying to use the price mechanism. What you’re trying to do was change people’s travel behavior to make them more sustainable,” Christina Calderato, director of transport strategy and policy at Transport for London, said in an interview.

Hochul aims to raise money and reduce traffic by tolling drivers entering Manhattan below 60th Street. And a 2019 law clearing the way for the program requires it to generate $1 billion annually while exempting emergency vehicles, vehicles transporting people with disabilities and residents who live in the zone and make less than $60,000 annually.

Now authorities must balance how much to charge and who else to exempt — knowing that as the number of carveouts increases, so too must fees for those who are forced to pay. A six-member panel called the Traffic Mobility Review Board will ultimately propose the final arrangement, which the MTA board must vote to approve.

Transit leaders this week concluded six public hearings on the plan’s federally required environmental assessment, which weighs the impact of tolls ranging from $9 to $23 for passenger vehicles and between $12 and $82 for trucks. The Biden administration could decide by early next year whether to allow state officials to move forward.

Taxi standoff

Among the biggest sticking points in New York is how the state will handle taxi and for-hire vehicle drivers, who have been rallying outside the MTA’s headquarters this week to push for a blanket exemption.

Uber, Lyft and other app-based services have argued the new tolls are unfair because they already pay surcharges that generate revenue for the MTA. They also contend rising costs would unfairly burden passengers outside of Manhattan who have more limited transit options.

MTA Chair and CEO Janno Lieber has said he wants as few exemptions as possible, to ensure the plan works as intended. But he has voiced a willingness in recent days to work with the for-hire vehicle industry, particularly yellow cab drivers still reeling from a debt crisis where the secondary market for once-pricey taxi licenses imploded — and took many drivers’ life savings with it. Two scenarios presented in the environmental assessment exempted taxis, and others proposed capping how many times cabs and for-hire vehicles could be charged.

“As we work this through and look at the different options, we’re very attentive to not harming the for-hire vehicle business and the for-hire vehicle drivers,” Lieber said recently on public radio station WNYC. “It’s specifically identified as one of the issues that we have to mitigate, and we have to deal with as we select a strategy.”

London faced a similar issue when Uber and Lyft vehicles started popping up in city centers several years after it installed congestion pricing.

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London saw traffic drop 15 percent afterward, but many of those gains were “eroded” by the growing number of for-hire vehicles, Calderato said. London now only exempts private for-hire vehicles if they’re wheelchair accessible, or one of the city’s famed black minicabs.

“What we were seeing though, was that where the congestion charge was successfully disincentivizing other people to stay away, [private for-hire vehicles] were uncharged and were then taking up that road space,” she said. “So essentially, you weren’t necessarily getting higher levels of traffic, but for all the other gains you were making, you were losing them again to the uncharged vehicles.”

Similar to New York, determining the rules for private vehicle operators was “a difficult consultation and decision” in London, according to Calderato. Operators ultimately bore the new cost, with Uber adding a £1 charge to every trip.

“There were different ways of doing it. But I think what we did see was that that market can adapt,” Calderato said.

Jersey barriers

The plan has garnered significant pushback from Hochul’s counterpart across the Hudson River.

And while her constituents may not reside in New Jersey, several of her top policy ideas rely on cooperation from Murphy, a fellow Democrat. For instance, Hochul and Murphy must still hammer out an agreement on how to pay for the proposed reconstruction and expansion of New York Penn Station.

But Murphy has only sharpened his rhetoric against the plan in recent days, arguing the state isn’t “equipped right now to see a bunch of people go out of their cars onto public transportation.”

He has faulted the plan as a “double taxation” on New Jersey drivers, who also have to pay tolls on the George Washington Bridge, Lincoln Tunnel and Holland tunnels to the Port Authority of New York and New Jersey.

Generally, Lieber has shown little sympathy for complaints of higher fare prices.

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He specifically faulted Gottheimer for “grabbing TV cameras” to complain about congestion pricing while allowing “2-mile-an-hour bus traffic” in his district. (A criticism that Gottheimer later called “the most ridiculous and defensive argument I’ve ever heard.”)

“We want to benefit the folks, the 90 percent of people who depend on mass transit, who are already using mass transit,” Lieber said on WNYC. “That’s where our priority lies, honestly.”

Environmental concerns

Others warn about the plan’s potential to divert traffic to other local roadways, creating more headaches for neighborhoods on the periphery of the congestion pricing zone.

This is particularly acute in the South Bronx, an area overburdened with polluting infrastructure. The MTA’s environmental assessment said the Cross Bronx Expressway could see hundreds more trucks daily, depending on what tolling scenario they choose. Rep. Ritchie Torres, a Democrat who represents the area and supports congestion pricing, has called on the agency to mitigate the potential impact.

While concerns over diverted traffic are common, transportation experts said they haven’t come to pass in cities that have moved forward with similar schemes.

“There is one interesting element, in that we tend to think that the traffic — the congestion — will reduce in the charging zones, but will increase in the grounds of that zone,” said Mohamed Mezghani, secretary general of the non-profit advocacy organization International Association of Public Transport. “There is no evidence of systematic increase in traffic around the charging zone or outside of the charging zone.”

Calderato echoed that point, adding that charges helped improve trip speeds for freight trucks that have little choice in their driving routes.

“For those freight vehicles, if they are able to make that journey in half the time, then that payment actually becomes like it’s a charge for a service — and that service is the freed-up road space you’re able to make that journey more quickly,” she said.

Still, Hochul will face political pressure to respond to concerns raised in the Bronx, particularly given the legacy of the Cross Bronx Expressway’s impact on the community.

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Kevin Garcia, the transportation planner for the NYC Environmental Justice Alliance, has since named specific policies that could help reduce the plan’s impact on an area overburdened by polluting infrastructure. In testimony, Garcia called for the shutdown of peaker power plants and capping of the Cross Bronx Expressway.

“The MTA’s intent to address increased traffic and emissions in the Bronx is woefully inadequate,” Garcia said in Thursday’s testimony. “The MTA and the Hochul administration have obligations and ample opportunities to not just shoot for a ’net zero’ approach to increasing traffic and emissions in the Bronx, but rather to commit to a ’net positive’ approach, where the action leads to lower levels of emissions than would have otherwise occurred under the MTA’s proposal.”

In September, MTA officials will work on finalizing the environmental review, responding to the variety of criticisms raised throughout the public comment period. If the Federal Highway Administration approves it, congestion pricing could launch in New York by the end of 2023. The Biden administration could also ask for a full environmental impact statement, which would significantly draw out the timeline.

Those who have gone through the process before said it’s important to be flexible and respond to changes in traffic conditions.

London’s own plan continues to evolve. In 2025, transit officials will get rid of the congestion pricing exemption for battery-powered cars. Officials are also considering a fee for every car trip made, as part of a push by London Mayor Sadiq Khan to meet the city’s zero-carbon emissions by 2030 target.

“You’d still have your congestion pricing element. It would just be a part of a more sophisticated scheme” to factor in distance traveled, Calderato explained.

Calderato said her “take-home message” is that “pricing works, daily charges work.” In addition to the drop in congestion, London also saw greenhouse gas emissions decline 16 percent, she said.

She added any plan must come with ample public transportation options to ease the transition.

“We put a really, really big investment into buses, and that was really key,” she said. “Because making sure that you’re providing people with those alternatives, and they can see that — that those buses were there from day one — was really important.”

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FAQs

Does New York have congestion pricing? ›

The congestion pricing zone would run from the Battery to 60th Street and is expected to reduce traffic across the entire New York City region. But there are boroughs, counties and neighborhoods that are likely to see an increase.

How does congestion pricing work in NYC? ›

The Tax Law imposes a surcharge that is added to the charge for transportation that: both begins and ends in New York State, and that. begins in, ends in, or passes through the area of New York City in the borough of Manhattan, south of and excluding 96th Street (an area known as the congestion zone).

What causes traffic congestion in New York City? ›

Congestion and traffic pollution has been a major problem in New York City for years. There have been many laws, tolls, and fines implemented over the past few decades to try and fix the problem. Yet, congestion still exists. Congestion occurs when there is overcrowding on roadways that's causes traffic jams.

What is meant by congestion pricing? ›

Congestion pricing - sometimes called value pricing - is a way of harnessing the power of the market to reduce the waste associated with traffic congestion.

Who is exempt from NYC congestion pricing? ›

Exemptions are already planned for emergency vehicles, those transporting people with disabilities, and residents of the congestion zone who earn $60,000 or less annually.

How can I avoid paying the Congestion Charge? ›

Since 25 October 2021, only zero-emission vehicles - such as EVs and hydrogen fuel cell vehicles - have been exempt from the congestion charge. From December 2025, however, even drivers of zero-emission cars will be required to pay.

Who pays for Congestion Charge in NYC? ›

Drivers entering from the avenues-or any of the un-tolled crossings, like the 59th Street Bridge-would pay the full congestion fee. Drivers on the FDR or the West Side Highway would not be charged unless they exited into the Central Business District.

Who does congestion pricing affect? ›

Currently, the only exemptions from congestion pricing are emergency vehicles and those carrying people with disabilities, while residents living within the congestion pricing zone and those earning less than $60,000 a year would receive tax credits.

Who came up with congestion pricing? ›

New York City was judged to be compliant with the Clean Air Act in 1981, and through the 1980s and 1990s, other proposals to limit congestion in New York City stagnated. A congestion pricing scheme was proposed in 2007 by Mayor Michael Bloomberg as a component of PlaNYC, his strategic plan for the city.

What is congestion transport? ›

In the transportation realm, congestion usually relates to an excess of vehicles on a portion of roadway at a particular time resulting in speeds that are slower—sometimes much slower—than normal or "free flow" speeds. Congestion often means stopped or stop-and-go traffic.

What does NYC gridlock mean? ›

Gridlock Alert Days are when the worst congestion and slow-moving traffic are expected. The next alert day is Monday, Sept. 19 for the U.N. General Assembly, but some street closures start at 10 p.m. tonight. There will be extensive street closures and delays across Manhattan until the end of the week.

Which cities have worst traffic? ›

Photos You Should See - Oct. 2020
Congestion RankMetro AreaHours Lost to Congestion
1Boston, Massachusetts149
2Chicago, Illinois145
3Philadelphia, Pennsylvania142
4New York City, New York140
6 more rows

Why is road congestion price needed? ›

The main purpose of congestion pricing is to mitigate/manage traffic congestion by encouraging drivers to switch to use other modes of transportation, use other routes, or change time of travel (shifting peak-period travel to other off-peak period) [4].

Does America have Congestion Charge? ›

Cuomo's congestion pricing plan was approved in March 2019, though congestion pricing in New York City would not go into effect until 2022 at the earliest. New York City's congestion pricing zone will be the first in North America.

What are the different types of congestion pricing strategies? ›

Congestion pricing includes demand or surge pricing, segmented pricing, and peak-user pricing. The idea behind congestion pricing is that consumers will use and waste more of a free or negligibly priced resource than an expensive one.

Where is congestion pricing NYC? ›

The practice is commonly referred to as congestion pricing and has been used in cities including London, Singapore and Stockholm. In New York, motorists entering Manhattan below 60th Street would be charged a toll electronically.

Would Manhattan residents be exempt from congestion pricing? ›

A member of an MTA review board said Thursday that exemptions for Manhattan congestion pricing are unlikely. In an interview with "Mornings On 1" anchor Pat Kiernan, Kathryn Wylde, a member of the MTA Traffic Mobility Review Board, called exemptions "problematic" and suggested there will be none offered.

What if you live in the congestion zone? ›

Moving in to the zone

You will need to pay the full Congestion Charge until your discount has been approved. However, you may be entitled to a 90% refund of the charges you've paid while you have been waiting (subject to TfL's terms and conditions).

What happens if you don't pay Congestion Charge? ›

If you don't pay by midnight on the third day after travel in the zone, you will receive a Penalty Charge Notice (PCN). Not all drivers have to pay. Find out about discounts and exemptions. You can pay the Congestion Charge in several ways.

Do electric cars pay Congestion Charge? ›

By switching to a zero emission-capable vehicle you can save money on fuel costs, reduce harmful vehicle emissions and help clean up London's air. There are also financial benefits: Zero emission vehicles that meet the criteria are eligible for a 100% discount on the Congestion Charge.

What vehicles are exempt from Congestion Charge? ›

Who doesn't have to pay congestion charges?
  • Blue Badge holders.
  • Roadside recovery vehicles.
  • Accredited breakdown vehicles.
  • Vehicles with nine or more seats.
  • Cars that emit 75g/km or less of CO2.
  • Zero-emission vehicles (Fully electric vehicles and any other zero emissions vehicles)
Apr 22, 2022

Where is the congestion charge zone NYC? ›

The zone for the congestion-pricing plan, which the MTA formally calls the Central Business District Tolling Program, includes all of Manhattan south of 60th Street except for the West Side Highway (9A), the FDR Drive, the Battery Park Underpass (which connects the two), and any roadway that connects the Hugh L.

What is MTA congestion pricing? ›

The tolling plan, known as congestion pricing and expected to launch late next year, is the first of its kind in the country. It aims to discourage cars from squeezing into one of the world's busiest commercial districts — roughly the southern third of the length of Manhattan — while raising money for public transit.

Would Manhattan residents be exempt from congestion pricing? ›

A member of an MTA review board said Thursday that exemptions for Manhattan congestion pricing are unlikely. In an interview with "Mornings On 1" anchor Pat Kiernan, Kathryn Wylde, a member of the MTA Traffic Mobility Review Board, called exemptions "problematic" and suggested there will be none offered.

How much is the tolls in New York? ›

New Passenger Vehicle Rates
CrossingE-ZPass (NYCSC)Tolls by Mail / non-NYCSC E-ZPass
Robert F. Kennedy, Bronx-Whitestone, Throgs Neck, and Verrazzano-Narrows Bridges and Queens Midtown and Hugh L. Carey Tunnels$6.55$10.17
Henry Hudson Bridge$3.00$7.50
Cross Bay and Marine Parkway Bridges$2.45$5.09

Do you pay Congestion Charge if you live in the area? ›

You can apply for a 90% discount on the Congestion Charge if you qualify as a resident of the charging zone. If you have just moved into the zone and are waiting for your proofs of residency you can start the application process now and then complete it later when your proofs are available.

How do I pay the congestion tax? ›

You can pay the Congestion Charge online via the TFL website or at selected newsagents and petrol stations in the London area. There are also around 100 blue and red self-service machines in car parks inside the zone. These only accept credit and debit cards, though – no cash.

Where is congestion zone extended? ›

Proposals to expand the ULEZ London-wide on 29 August 2023, would see: The zone expanding up to the current LEZ boundary covering almost the whole of London. A daily charge of £12.50 if you drive within the zone in a non-compliant vehicle.

What is congestion surcharge NYC taxi? ›

Since 2009, all taxi trips have included a 50-cent surcharge to help the MTA. In 2019, a $2.50 congestion surcharge was added to all taxi trips south of 96th Street in Manhattan. Drivers of for-hire vehicles, such as Uber, limousines and green taxis, pay $2.75 per trip.

Does Congestion Charge apply to taxis? ›

Taxis. Taxis (black cabs) are exempt from paying the Congestion Charge when actively licensed by Transport for London. A vehicle will be removed from the register of exempt vehicles on the surrender, expiry or revocation of the licence.

Can you park in congestion zone? ›

The charges only need to be paid if you drive your vehicle within the zone. Parked vehicles are not subject to any charges. As well as ULEZ and LEZ charges, you may also need to pay the Congestion Charge. The Congestion Charge operates 07:00-18:00 Mon-Fri, 12:00-18:00 Sat-Sun and bank holidays.

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