What is Congestion Pricing? An Overview of NYC’s Newest Toll System

Written by: Pablo Lopez

Manhattan Toll Signage and Cameras
Rashawn Khamari Merchant / Earth Shiners

Congestion pricing is the latest initiative by New York’s Metropolitan Transportation Authority (MTA) to help reduce traffic and carbon dioxide emissions in Lower Manhattan. The aim is to provide much-needed funds for the MTA’s subway and bus network. The government will pursue these goals by implementing a daily $9 toll for most vehicles entering Lower Manhattan at or below 60th Street (exceptions apply, and overnight discounts are available). Many politicians, visitors, and commuters who frequent the area have criticized this plan harshly. The MTA’s goal is for more people to choose not to drive into the Congestion Relief Zone and instead choose alternative modes of transit, such as public transportation, walking, and biking.

Congestion Pricing
Rashawn Khamari Merchant / Earth Shiners

Although this concept may seem absurd, it is essential to know that this is not a new method of tackling city congestion. Singapore, Milan, Stockholm, and, famously, London have had congestion pricing in place for years. London marked 20 years of their Congestion Charge in 2023 and reported a 30% reduction in congestion, a 33% increase in bus travel, 10% of car trips switched to walking, cycling, and public transport, and enabled London to invest 2.6 billion pounds into public transportation, bike lanes, and expanding sidewalks. Similarly, in Milan, there have been noticeable improvements in reducing congestion since implementing their Congestion Charge. They have seen a 28% reduction in congestion, a 10% increase in freight delivery productivity, a 35% reduction in carbon dioxide emissions, and road crashes with injuries down by 26.3%. It is key to highlight these worldwide successes to show that this is a proven concept to help our cities.

In an ideal world, the MTA would have the funds to run the trains and buses throughout the city with fares and ad placements. Unfortunately, this is not the case. There have been decades of deferred maintenance, fare evasion, and neglect of stations that officials are now addressing at the most expensive time in history. For example, when the New York City Subway opened in 1904, accessibility was not a requirement, nor was it considered during construction. Just within the last decades has this flaw been addressed, as the MTA has been at work to add elevators and ramps to stations with a goal of 95% of stations being ADA accessible by 2055. These necessary improvements ensure that everyone, regardless of physical ability, can use public transportation.

NYC Commuters Waiting in the Subway System
Rashawn Khamari Merchant / Earth Shiners

$9 per day is a lot of money, especially for someone commuting five times a week into the congestion zone. But here is the truth: about 85% of all daily commuters enter the congestion zone by subway, bus, or commuter rail. Congestion pricing is raising funds to improve the services that 85% of commuters use. As of writing, the first week of congestion pricing results are in, and they are showing improvements already. 8% fewer vehicles entered the zone versus previous January averages, faster-driving commute times, and numerous bus routes with shorter commute times. These are very early results but positive, nonetheless. There is much to be hopeful for, but time will tell if congestion pricing becomes a success.

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