New York imposes first ever congestion pricing plan in US

A congestion pricing plan covering Lower and Midtown Manhattan took effect on Sunday, making New York City the first US city to implement such a plan.

Vehicles will be tolled to enter the congestion relief zone with the amount depending on the type of vehicle, time of day, whether any crossing credits apply, and the method of payment with discounts and exemptions applicable to certain drivers or vehicles, the Metropolitan Transportation Authority (MTA) said.

Passenger and small commercial vehicles, trucks, buses, and motorcycles entering the congestion relief zone will be charged once per day while passengers of taxis and for-hire vehicles will be charged for each trip to, from, within, or through the congestion relief zone.

The tolls would be adjusted upward in 2028 and 2031 as regulators phase out 40 percent of discounts offered at the beginning.

It’s estimated that the congestion pricing plan would drive down the number of vehicles entering the congestion relief zone and vehicle miles in the zone by 10 percent and 5 percent, respectively.

The MTA is expected to add 1 billion US dollars of revenues each year to fund its capital spending plan of as much as 15 billion dollars.

Controversy around the congestion plan has led to multiple lawsuits in New York and New Jersey, but opponents failed to block the implementation.