New York, Nov 14
New York State Governor Kathy Hochul has reintroduced a plan to impose congestion fees on vehicles which enter the Central Business District (CBD) of New York City starting from early January 2025.
The revised plan for congestion pricing in Manhattan is the first of its kind and lowers toll costs across the board by 40 percent compared to earlier proposals. Passenger vehicles entering Manhattan below 60th Street will now need to pay $9 once per day, down from $15 in the previous plan. However, the rate of fees is set to increase starting in 2028, with cars paying $12 once per day according to the new plan.
The proposal anticipates a 10 percent decrease in the number of vehicles entering the Central Business District (CBD) and a 5 percent reduction in vehicle miles due to the congestion pricing initiative. Governor Hochul has also introduced a package of new measures aimed at easing traffic and air pollution while expanding bus service in New York City.
"While the toll structure under this plan is lower than the tolls initially proposed, it will still enable the MTA (Metropolitan Transportation Authority) to leverage $15 billion in bonds for the MTA's current Capital Programme over time," stated a release from the governor's office. The plan is scheduled for approval by the MTA board next week. Following that, New York State and New York City will sign an agreement with the federal government, which greenlit the plan in May 2024.
The congestion pricing plan remains controversial, with New Jersey Governor Phil Murphy condemning it on Thursday and vowing to sue to prevent its implementation, as reported by Xinhua news agency. Governor Hochul had previously paused the implementation of the congestion plan in early June, just before it was set to start on June 30, 2024. The Manhattan congestion pricing plan was originally introduced and approved in 2019 under then-New York Governor Andrew Cuomo's administration.