NYC’s congestion pricing plan receives final federal approval

New York City will soon officially become the first city in the United States that changes drivers looking to enter its busy streets. The Metropolitan Transportation Authority (MTA) received final federal approval. This approval allows New York City to launch a congestion pricing policy as early as next spring. The tolling program covers Manhattan below 60th Street. 

After a 30-day public review process, the Federal Highway Administration issued a “Finding of No Significant Impact” for NYC's congestion pricing plan. Now, the MTA – the agency responsible for implementing this program – could charge drivers every time they enter Manhattan during peak hours. However, the MTA is still working on some final details, including toll rates, discounts, and exemptions. 

"Congestion pricing will reduce traffic in our crowded downtown, improve air quality and provide critical resources to the MTA.” Governor Hochul said. “I am proud of the thorough Environmental Assessment process we conducted, including responding to thousands of comments from community members from across the region. With the green light from the federal government, we look forward to moving ahead with the implementation of this program."

Last month, the MTA published its final environmental assessment, which includes tolling rates that range from $9 to $23 for cars, motorcycles, and commercial vans. Small trucks will be charged $12 to $65, and drivers of larger trucks will have to pay anywhere from $12 to $82. The congestion pricing plan faced resistance from New Jersey officials. Congressman Josh Gottheimer, Senator Bob Menendez, and Congressman Bill Pascrell, Jr. released a statement criticizing the decision to approve this initiative. 

"All New Jersey drivers entering Manhattan using the Holland and Lincoln Tunnels and George Washington Bridge must be exempt from New York’s Congestion Tax,” said New Jersey officials in a joint statement. “We will not stop fighting until we defeat this plan and ensure New York is not allowed to balance its budget on the backs of hard-working New Jersey families. That’s a Jersey promise."

Although New York is the first city in the United States to implement such a policy, similar tolling programs exist in other parts of the world, including Singapore, Stockholm, London, and Milan. Before the COVID-19 pandemic, 700,000 vehicles entered the Central Business District (CBD) daily. These cars travel, on average, only 7 miles per hour in the CBD and even slower in Midtown, according to the MTA.

Resources: 

“NYC Is Cleared for First-in-US Congestion Tolls as Soon as April,” by Michelle Kaske (Bloomberg, 2023)

“Feds give final approval to New York’s congestion pricing program,” by Ben Brachfeld (amNY, 2023)

“Congestion pricing is coming to New York City, officials announce,” by  Nathaniel Meyersohn (CNN, 2023)

“​Federal Highway Administration approves Manhattan congestion pricing plan,” by Marcia Kramer and Dick Brennan (CBS New York, 2023)

“MTA receives final federal approval for congestion pricing,” by Eyewitness News (ABC 7 NY, 2023)