For the second year in a row, New York City ranked as the world’s most congested urban area, with at least half a million vehicles entering the central business district of the Manhattan borough on a typical weekday. On January 5th, 2025, a congestion tolling program was enacted to curb these rising traffic issues. On February 19, NYC’s congestion tolling program received national attention after Transportation Secretary Sean Duffy sent a letter to Governor Kathy Hochul claiming the program, formerly approved by the federal government in 2023, was not aligned with federal law. President Trump later posted that congestion pricing in NYC was “dead”, reigniting controversy about the program. Recently, the Federal Highway Administration issued a letter stating that the NYC Metropolitan Transit Authority (MTA) has until March 21st, 2025 to cut its congestion pricing program entirely.
Background: What is Congestion Pricing?
Congestion pricing is a transportation efficiency measure that imposes a high toll during rush hours and a lower toll on off-peak hours. Given that most drivers during rush hour periods are not commuters, congestion pricing policies encourage non-essential travelers to use public transportation options or travel during different hours. These policies are enacted with the aim of easing road congestion and creating more efficient traffic flow.
New York City’s Congestion Toll Program was authorized in 2019 under the Traffic Mobility Act and passed as part of the city’s Fiscal Year 2019 Executive Budget. After a lengthy period of federal environmental assessment and public outreach, the Federal Highway Administration approved the program in 2023. It was enacted on January 5th, 2025.
The congestion tolls apply to a designated “congestion relief zone”. The zone encompasses the central business district of Manhattan at or below 60th Street and the entryways beside the Hugh L. Carey Tunnel leading from Queens, Brooklyn, and New Jersey. Travelers pay a daily toll, and can exit and enter multiple times that day without additional charges. During the “peak period” – 5am to 9pm on weekdays and 9am to 9pm on weekends – the entry toll is $9 with EZ Pass and $13.50 by mail for passenger and small commercial vehicles. Motorcycles pay slightly less, while larger vehicles like trucks pay more. During “off-peak” hours, the base toll is $2.25, with similar vehicle-based variations in price. Rideshare services pay a per-ride surcharge instead of the daily toll.
Arguments In Favor
The central argument in favor of the congestion toll policy is that it reduces travel times at peak hours. The program is estimated to decrease commuter traffic by 13 percent, and has already had a noticeable impact. According to the MTA, trip times across river crossings and in the Central Business District decreased within the first 20 days of the program’s implementation. One month after implementation, subway ridership increased 13.1% compared to the same month last year, fatal traffic accidents decreased by 44%, and overall commute times have decreased 10% to 30% depending on the area. At the one-month point, MTA data showed over one million fewer vehicles driving in the congestion zone. These benefits have already been perceived by commuters; a recent study of metropolitan NYC residents shows that nearly 60% approve of the program, and that 75% of participants who regularly commute to Manhattan’s Central Business District have noticed less traffic since the policy was implemented.
Proponents of the congestion toll also argue that it will raise the necessary revenue to fulfill the Metropolitan Transportation Authority’s $15 billion capital budget shortfall to support infrastructural improvements. Projected to raise approximately $500 million annually, the congestion toll will be funneled largely toward subway and bus systems – improving public railway networks and preventing future maintenance delays. One such project is the Interborough Express, a proposed Brooklyn-to-Queens railway with connections to 17 subway lines, 50 bus routes, and the Long Island Rail Road. The program is also estimated to save New Yorkers $20 billion in excess congestion costs through reduced fuel expenditures and increased efficiency in the movement of people and goods.
Supporters also highlight reduced emissions as a benefit of the toll program, pointing to a 2020 study that suggests congestion pricing policies improve air quality by reducing particulate matter pollutants by 17.5%. They argue that this reduction in pollutants, paired with investments in public transit, could lower child asthma exacerbations, other respiratory illnesses, and adverse birth outcomes such as preterm birth and low birth weight.
While some residents argue that the policy creates a significant financial burden for low-income commuters, supporters dispute these financial concerns. They highlight that those who commute via private transportation have an approximately 32 percent higher median income than those who take public transit. They also point to the policy that allows commuters who make less than $60,000 annually and rely on private vehicles to receive a tax credit proportional to their toll payments. Those who make less than $50,000 are eligible for the Low-Income Discount Plan, a 50% reduction after 10 trips in a month.
Arguments In Opposition
Critics argue that the new program will disproportionately burden small businesses and vendors with new costs. They contend that suppliers will begin including a congestion surcharge on their invoices, initiating a ripple effect of increased prices that will ultimately be shouldered by small vendors and customers. Vendors who travel into the Congestion Zone for night markets or festivals will face an extra charge which some argue will drive down attendance at these events. Opponents stress that while large businesses can adjust their business models to account for the increased transportation costs, small businesses often operate with very thin margins such that even a $25 per day increase in costs could leave them in the red.
Opponents also argue that the program fails to acknowledge the lack of efficient public transit alternatives to private vehicles, creating barriers for commuters who regularly cross boroughs. This argument stems from a lawsuit filed by seven teachers in the NYC teachers union who assert that the toll is “regressive and discriminatory” and will be shouldered by essential workers including teachers, first responders, and sanitation workers. Several teachers in the suit reported searching for jobs closer to home to avoid choosing between a congestion toll or an hours-long public transit commute. New Jersey Governor Phil Murphy also filed suit against New York’s implementation of the program, citing a “financial strain on hardworking New Jerseyans”. While a main aim of the congestion tolling program is to increase use of public transit options, a majority of Queens and Northern Bronx participants in a 2018 transit survey say that public transit is getting worse. Farther commuters, such as those from the Rockland County area, also say they do not have adequate public transportation infrastructure to avoid the congestion toll.
Another major concern regarding the program’s implementation is health impacts on Bronx residents. Community members argue that the toll program will redirect traffic to the South Bronx, increasing local pollution and exacerbating asthma cases. Research shows that asthma is disproportionately concentrated in the Bronx, with 17% of children under age 3 being diagnosed, compared to 11% in NYC. Critics contend that the congestion pricing program is one example in a long history of discrimination towards low-income outer-borough residents, with one South Bronx resident stating, “It’s benefitting one affluent area of the city that we live in, but then our area just suffers worse air quality because of it.”
Other critics argue that the program is cruel for older and disabled people who live in the congestion tolling zone, given that many have mobility constraints which make it difficult to use public transit regularly..
Recent Developments: Federal Opposition
While the core arguments for and against NYC’s congestion pricing have remained fairly stagnant since the program was proposed in 2007, a new addition to this debate emerged on February 19th when Transportation Secretary Sean Duffy sent a letter to New York Governor Kathy Hochul rescinding federal approval of the program. The letter argues that the Federal Highway Authority lacked the authority to approve a mandatory tolling program in 2023, that the current NYC tolling program does not align with the federal Value Pricing Pilot Program under which it was approved. The MTA immediately challenged the Department of Transportation’s order, stating that the administration’s efforts were “unlawful” and that the decision should be voided. NY Governor Kathy Hochul responded to the Trump administration’s attempts to shut down the local program, stating, “This is an attack on our sovereign identity, our independence from Washington.” While the city was given a deadline of March 21st, 2025 to end the program, NYC government officials and MTA executives seem prepared to continue tolling past that date in the absence of a court order.
Conclusion and Future ProspectsWhile the initial results of NYC’s congestion pricing toll show promising outcomes, pending lawsuits and federal opposition suggest an uncertain future for the program. While other major U.S. cities such as Washington D.C. and Chicago are considering similar programs, implementing such comprehensive transportation reforms will take years of planning and budgeting. As the first of its kind in the nation, NYC’s congestion pricing program will serve as a case study in the successes, drawbacks, and overall feasibility of U.S. congestion tolling in the years to come.
