By David Shepardson
(Reuters) -New York plans to revive a $9 congestion mitigation charge for driving in Manhattan starting in January that the state indefinitely put on hold earlier this year, Governor Kathy Hochul said on Thursday.
New York City’s congestion pricing program, the first of its kind in the United States, was initially to have charged a toll of $15 during daytime hours for passenger vehicles driving in Manhattan south of 60th Street starting on June 30. Shortly before that date, however, Hochul put the plan on hold indefinitely, citing high inflation and a desire not to discourage commuters and tourists.
But now, New York is racing to implement the charge before President-elect Donald Trump takes office. Trump said on Thursday he strongly disagreed with the decision to implement the fee. “It will put New York City at a disadvantage over competing cities and states, and businesses will flee,” he said in a statement.
London implemented a similar charge in 2003.
Hochul said the new base charge for passenger vehicles will be $9, which is 40% less than initially announced. She said the toll is crucial to making new investment in subways and buses in New York, and that it will support $15 billion in debt financing for mass transit improvement.
Trucks and buses will pay up to $21.60, and there will be 75% discounts for traveling at night. The fee will be charged once a day regardless of how many trips are made for car owners, while taxis will pay 75 cents per trip in the Manhattan zone and Uber (NYSE:) or Lyft (NASDAQ:) vehicles reserved by app will pay $1.50 per trip.
Hochul said the funding will help “begin to drive down gridlock and the emissions, as intended, and will deliver major environmental improvements.”
The Metropolitan Transportation Authority, which is used by around 6 million people daily, will vote on Monday to approve the charge. MTA has agreed not to hike the $9 base toll before 2028.
The MTA has said congestion pricing would cut traffic by 17%, improve air quality, and increase mass transit use by 1% to 2%. In the aftermath of the delay, the MTA in June said it was putting $16.5 billion in capital projects on hold.
A U.S. Transportation Department spokesperson said New York notified the Federal Highway Administration of updated plans to advance the project with a starting toll of $9 for passenger cars. The agency is finalizing the steps needed to complete an agreement to let the program take effect.
A group of five New York Republicans in the U.S. House of Representatives this week urged Trump to kill the charge, asking him to end “this absurd congestion pricing cash grab.” Some New Jersey Democrats also oppose the fee and vow to fight it.
In 2019, state lawmakers approved the plan to help fund improvements in mass transit using tolls to manage traffic in New York City, the most congested of any American city.
New York has said more than 900,000 vehicles enter the Manhattan Central Business District daily, which reduces travel speeds to around 7 miles (11 km) per hour on average.
