Biden administration gives green light to NYC’s congestion pricing plan

Driving through Manhattan is about to get more expensive. The Federal Highway Administration (FHA) has greenlighted New York’s congestion pricing plan, allowing the city to get one step closer to implementing the policy. The new measure would require drivers to pay a fee to enter Manhattan's busiest commercial districts during peak hours.

In 2022, the Metropolitan Transportation Authority published the long-awaited environmental review for NYC's congestion pricing. This review offered details on how this plan could be implemented. On May 5, the FHA issued a letter approving the MTA's environmental assessment, triggering a 30-day public review process. 

Once the program receives its final approval from the FHA, New York City could begin charging divers looking to enter Manhattan as early as the spring of 2024. The tolling program, which would be the first in the country, received support from environmental advocates, who cite its ability to reduce traffic and address air pollution. 

NYC’s congestion pricing plan could help MTA generate an additional one billion dollars in annual revenue, which would go towards improving the transit system. The tolling program would cover Manhattan neighborhoods below 60th Street. The congestion pricing system has been opposed by New Jersey officials, who argue that it puts a burden on those who have to commute to NYC for work. 

“Since day one, I’ve stood against the disproportionate negative impacts of congestion pricing on New Jerseyans,” said NJ Governor Phil Murphy. “Everyone in the region deserves access to more reliable mass transit, but placing an unjustified financial burden on the backs of hardworking New Jersey commuters is wrong. Simply put, it is a money grab. ”

The MTA has not determined the exact fees for drivers. However, drivers looking to get into Manhattan would likely pay up to $23 during peak hours. Vehicles carrying people with disabilities and emergency vehicles would be exempt from paying these fees. In addition, drivers with primary residences inside Manhattan CBD and those with an annual income below $60,000 would be eligible for a tax credit equal to the amount of the tolls. 

Resources:

“CENTRAL BUSINESS DISTRICT (CBD) TOLLING PROGRAM ENVIRONMENTAL ASSESSMENT Executive Summary,” (MTA, 2022)

“We’re Another Step Closer to Congestion Pricing,” by Alissa Walker (Curbed, 2023)

“Biden administration green lights nation’s first congestion pricing plan for New York,” by Danielle Muoio Dunn (Politico, 2023)

“NYC congestion pricing plan greenlighted by the FHA, triggering 30-day public review period,” (ABC 7 NY, 2023)

“New York City congestion pricing plan clears tall hurdle,” by David Shepardson (Reuters, 2023)