Transportation Planning Casebook/New York Congestion Pricing Rollout

Summary

The New York Congestion Pricing Plan is an important transportation policy aimed at reducing traffic congestion in Manhattan's central business district and raising funds for the aging public transportation system. It was officially implemented on January 5, 2025.

Since the beginning of the 21st century, Manhattan's traffic congestion problem has become increasingly serious. The congestion caused longer commuting times, reduced economic efficiency, and increased environmental pollution. At the same time, the Metropolitan Transportation Authority (MTA), which is responsible for operating subways, buses, and commuter rails, has long faced funding shortages and aging facilities. As early as 2007-2008, then-Mayor Michael Bloomberg promoted the congestion charging policy, but it failed to pass due to opposition from suburban legislators. With the frequent subway failures and the increase in awareness of climate change, the call for transportation reform was once again high by the end of the 2010s.

It applies to most motor vehicle traffic using Manhattan's central business district south of 60th Street. The Metropolitan Transportation Authority estimates that it will generate $15 billion in available capital through bonding revenues, which will be used to fund the maintenance and improvement of subways, buses, and commuter rail systems. The detailed main goals of the plan include: reducing traffic in the central business district by 15–20%; reducing greenhouse gas emissions; and raising about $1 billion in capital investment funds for the MTA each year.

Once the plan was proposed, it sparked widespread support and strong opposition. Urban policy advocates, environmental organizations, and some municipal officials expressed support, believing that this move would help promote public transportation modernization and address climate issues. However, opposition from outer-city residents, suburban commuters, taxi drivers, and some business groups was equally strong, criticizing that the charges unfairly increased the burden on ordinary citizens. Between 2023 and 2024, the Metropolitan Transportation Authority and the New York City Department of Transportation developed a detailed operational plan. The final plan included free or preferential measures for specific groups (such as emergency vehicles and people with disabilities), and provided financial assistance programs for low-income commuters.

Since the policy was implemented, preliminary data showed that traffic in Manhattan's central business district has reduced, with daily vehicle inputs falling from a baseline of 583,000 to 475,000 to 560,000 vehicles. Travel times have improved dramatically, especially across the river, with travel times between Manhattan and New Jersey reduced by 30-40% via the George Washington Bridge, Lincoln Tunnel, and Holland Tunnel.

Annotated List of Actors

In Support of the Position

Name	Type	Role in Rollout	Details
Metropolitan Transportation Authority (MTA)	Government transit authority (NY State)	Lead implementing agency for NYC congestion pricing. Manages the design, infrastructure (tolling equipment) and operation of the Central Business District Tolling Programme. Also responsible for using revenues to fund transit improvements.	Conducted the required environmental assessments and public consultation. Established the tolling system and rules (with input from the Traffic Mobility Review Board). The MTA Board approved the pricing structure in 2024 and began collecting tolls on 5 January 2025​. The MTA plans to use congestion pricing revenues to fund transit improvements, such as upgrading subway infrastructure and expanding public transit services.
New York State Department of Transportation (NYSDOT) and New York City Department of Transportation (NYCDOT)	State and City transportation agencies	Participated as project sponsors alongside MTA Bridges and Tunnels. Supported the preparation of the Environmental Assessment and contributed to transportation planning and coordination for the Central Business District Tolling Program.	Worked closely with the MTA on planning and public communications. NYSDOT and NYCDOT officials helped conduct extensive analysis for the environmental assessment and traffic modelling.
Traffic Mobility Review Board (TMRB)	Advisory board (NY State-appointed)	The TMRB was established by New York State law in 2019 to recommend a toll structure for the Central Business District Tolling Program, including toll rates, credits, discounts and exemptions. The TMRB submits its recommendations to the Triborough Bridge and Tunnel Authority (TBTA) Board for approval.	In 2023, the TMRB held three public meetings to discuss key elements of the programme, including base toll rates, peak and off-peak periods, vehicle classifications, discounts and exemptions. Their recommendations, released in November 2023, proposed a $15 base toll for passenger vehicles, higher rates for trucks and buses, crossing credits for vehicles already paying tunnel tolls, and discounts for low-income drivers. The TMRB emphasised minimising congestion, promoting equity and ensuring the financial viability of the programme. Their report was submitted to the Triborough Bridge and Tunnel Authority (TBTA) for final approval.
Governor Kathy Hochul	State government (Governor)	Key policymaker overseeing the rollout. Has authority over the MTA and influence on timing and structure of the program. Responsible for state support and final approval of the plan.	Announced in June 2023 that the program would move forward after federal approval. However, in mid-2024, she delayed the start (citing the need to ensure readiness and to address suburban political concerns). In late 2024, Hochul unveiled a revised plan to "phase in" congestion pricing: she deemed the originally proposed $15 peak-period toll too high and ordered it reduced by 40% to a $9 peak-period toll.
Riders Alliance, Transportation Alternatives, Sierra Club NYC Group, Bike New York, Elevator Action Group (Rise and Resist)	Advocacy nonprofits (transit, environmental, cycling, and accessibility)	Public advocacy, political mobilisation, legal defence and messaging in support of congestion pricing.	These organisations defended congestion pricing after the federal government tried to stop the programme in 2025. Actions included public rallies, statements condemning federal interference, legal preparation and affirmation of the programme's benefits, such as reduced pollution, faster traffic, improved transit funding and increased accessibility.

In Mixed Views on the Position

Name	Type	Role in Rollout	Details
U.S. Federal Highway Administration (FHWA) (USDOT)	Federal agency	Oversight authority for tolling on federal-aid roadways. Responsible for reviewing and approving the Environmental Assessment (EA) for NYC’s congestion pricing and granting permission under the Value Pricing Pilot Program.	After a lengthy review, FHWA issued a Finding of No Significant Impact (FONSI) in 2023, concluding NYC’s congestion pricing would not cause serious environmental harm.This federal approval was a critical milestone that allowed New York to finalize and start the program. However, in February 2025, following a change in administration, U.S. Transportation Secretary Sean Duffy (under President Trump) announced the termination of federal approval for the congestion pricing plan.

In Opposition to the Position

Name	Type	Role in Rollout	Details
State of New Jersey (Gov. Phil Murphy & NJ agencies)	State government (neighboring state)	Key opponent to NYC’s congestion pricing. Concerned about the impact on New Jersey drivers commuting to Manhattan and potential traffic diversion to NJ communities. Pursued legal action to block or modify the programme.	In July 2023, the Murphy administration sued the U.S. Department of Transportation to stop congestion pricing, arguing that the federal approval failed to consider the negative impacts on New Jersey. Throughout 2024, New Jersey pressed the case in federal court, seeking to force a fuller environmental review or halt the plan. Gov. Murphy also demanded exemptions or revenue for NJTransit. (Governor Hochul revealed she offered NJ a share of funds for transit as a settlement, which Murphy rejected.
Trucking Association of New York (TANY) and Owner–Operator Independent Drivers Association (OOIDA)	Trucking and independent driver advocacy organizations	Represented the trucking industry's opposition to congestion pricing, citing cost burdens and operational impacts.	Criticised the congestion pricing scheme for imposing high tolls on trucks ($21.60 peak toll). Advocated exemptions for commercial vehicles. Publicly supported federal action to end the programme in 2025.