New York City to Implement Congestion Pricing in January

Governor Kathy Hochul in November announced a plan to begin implementing congestion pricing in New York City by early January. The plan is to take effect Jan. 5, according to NBCNewYork.com. In keeping with her promise to lower the cost of tolls from $15, the Governor’s plan features a 40 percent reduction in all tolls for vehicles entering the City’s Central Business District (CBD), saving commuters up to $1,500 per year. That plan also includes new tools to reduce congestion and air pollution in communities citywide – all of which will ensure that the plan achieves the goals of congestion pricing, including $15 billion in mass transit funding to support the MTA’s current Capital Program. Additionally, Governor Hochul committed to funding the proposed 2025-2029 MTA Capital Plan that was approved by the MTA Board in September – the largest capital plan for transit in New York State history.

“As I said from the start, a $15 toll was just too high in this economic climate. That’s why our plan cuts the daytime toll to $9 for cars,” Governor Hochul said. “By getting congestion pricing underway and fully supporting the MTA capital plan, we’ll unclog our streets, reduce pollution and deliver better public transit for millions of New Yorkers.”

MTA Chair and CEO Janno Lieber said, “New Yorkers deserve cleaner air, safer streets and ambulances that can get to them without gridlock, and the Governor is stepping up for them and for riders who need trains and buses to get them where they have to go — just like she did with the Budget in 2023. Now you’re seeing it again, a huge milestone for 6.5 million commuters. We want to bring more frequent and reliable service — to all our customers — just like we have on the 7 and L lines where upgrades are already complete.”

Governor Hochul’s new congestion pricing plan has already won support from a broad coalition of stakeholders including the Regional Plan Association (RPA), League of Conservation Voters (LCV), Natural Resources Defense Council (NRDC), Partnership for New York City and Real Estate Board of New York (REBNY), among others.

CONGESTION PRICING PLAN

Toll Structure and Delivering $15 Billion Over Time for Current MTA Capital Program

Under the plan, the toll structure for entering New York City’s CBD (Manhattan below 60th Street) would initially be as follows, starting at midnight on January 5. This structure represents a 40 percent reduction in all tolls:

• Daytime E-ZPass tolls
  • Passenger vehicles (once per day): $9
  • Motorcycles (once per day): $4.50
  • Small trucks and non-commuter buses: $14.40
  • Large trucks and sightseeing buses: $21.60
• Tunnel crossing credits reduced by 40 percent of original plan
• Nighttime discounts of 75 percent of daytime tolls
• Per-ride fees for all trips to, from, or within the CBD
  • Taxis and black cars: $0.75
  • App-based for-hire vehicles: $1.50

For commuters who drive into the CBD five days per week, this 40 percent reduction in the toll will save them approximately $1,500 per year.

Additionally, some eligible drivers will receive additional discounts, credits and exemptions, such as a low-income volume discount or a qualified disability exemption.

While the toll structure under this plan is lower than the tolls initially proposed, it will still enable the MTA to leverage $15 billion in bonds for the MTA’s current Capital Program over time – the same goal for the congestion pricing program. This includes supporting current Capital Program initiatives including:

• Second Ave Subway Phase 2 extension to East Harlem
• Modern signal systems on segments of the A/C and B/D/F/M lines for over 1.5 million daily riders
• Accessibility improvements at more than 20 stations
• Hundreds of new electric buses

The phase-in feature over time will help drivers adapt more easily to the program and give the MTA and other stakeholders the ability to monitor data regarding implementation and effects.