Starting January 5, 2025, a $9 congestion fee will be charged to enter New York City. Even before its announcement, many were conflicted about whether the potential benefits of congestion pricing in New York City would outweigh its downsides. Who will it assist? Who will it harm? What does it mean for New Jersey residents?
Due to concerns about too many unintended consequences, congestion pricing was abruptly paused in June by New York Governor Kathy Hochul. The governor announced a revised plan at a press conference on November 14, which implements a tolling structure to be phased in over six years. In 2028, the toll will increase to $12 and then $15 in 2031.
The Congestion Relief Zone runs from 60th Street down to the Battery, but excludes FDR Drive, West Side Highway/Route 9A, and the Hugh L. Carey Tunnel connections to West Street. The peak congestion hours are from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends. Most passenger cars would pay $9 during peak hours and $1.05 during the overnight period. For motorcycles, the toll is $4.50 during peak hours and $1.05 overnight. These vehicles will only be charged once a day.
However, there are a few exemptions and discounts. Individuals with disabilities or health conditions that prevent them from using transit in certain vehicles wouldn’t be charged. Moreover, vehicle owners with low-income will receive a 50% discount after their first 10 trips in the calendar month after they apply and enroll in the plan.
For decades, congestion has clogged the city, with New Yorkers losing 117 hours in traffic each year and $2,000 in lost time. Gridlock negatively impacts the economy, environment, and quality of life in New York. The Metropolitan Transportation Authority (MTA) states that the toll will result in at least 80,000 fewer vehicles entering the zone each day. It claims that the reduced traffic in the Congestion Relief Zone will lead to cleaner air, safer streets, and better transit. Additionally, the toll revenue will fund the MTA and its six million daily riders. The MTA plans to improve accessibility at over 20 stations, invest in hundreds of new electric buses, and finance critical projects keeping the system in good condition. Moreover, it will create 23,000 jobs throughout New York state and lead to a safer, quieter, cleaner, and more livable city.
However, many were opposed to the tolling prices, including Governor Philip D. Murphy of New Jersey. He argues that New Jersey wasn’t meaningfully consulted on the design’s plan and theorizes that it forces New Jersey residents to pay for the MTA’s debt. During his usual “Ask the Governor” segment on WNYC, Murphy stated that “You’re charging us more. We’re getting none of the money. The pollution is getting displaced over to our side of the Hudson.” Back in April, Murphy and other state officials challenged the tolls in federal court over similar concerns, citing that New Jersey will shoulder the environmental burdens while New York receives all of the benefits.
These arguments have been going back and forth for years. During 2021, various public hearings about congestion pricing have been held. One resident worried that trucks carrying medication, food, and household supplies would be unfairly charged, and that the truck tolls would trickle down to inflated prices for consumers and local businesses. This concern was shared by the Trucking Association of New York which filed a lawsuit in May arguing that it would squeeze the profit margins of small trucking companies.
Another resident from the Bronx said that the tolls would be unfair to her borough, the poorest in the city. She mentions that the subway was particularly unreliable and the most immediate benefits (cleaner air and emptier streets) would be centered around Manhattan. Meanwhile, some Manhattan residents dislike being forced to fund the transit system, citing already high living costs.
Moreover, at a New Jersey-centered hearing, some were concerned over being “double-tolled” to work in Manhattan. Josh Gottheimer, U.S. Representative and New Jersey Democrat, urged New York officials to reach towards a proposal that would benefit New Jersey’s public transportation.
Other cities like London, Singapore, and Stockholm have implemented congestion pricing with varying degrees of success. However, only time will tell how congestion pricing will impact New York and New Jersey.
