- Federal officials have rescinded New York’s congestion pricing program. Representatives from New York and New Jersey disagree on whether the program is good for the area. Here is what to know.
The U.S. Department of Transportation announced the termination of congestion pricing in Manhattan Wednesday after only a few weeks, a decision that appears set for a lengthy battle in court.
Proponents of congestion pricing point to promising early returns throughout New York, including more leisure visits to the area and a decrease in traffic that has long plagued the city. Critics view the practice as simply a moneymaker for the transit agency at the expense of commuters, particularly New Jersey residents.
The Metropolitan Transportation Authority has already filed documents in federal court challenging the DOT’s move. Here is what else to know about congestion pricing and what the court’s decision could mean for the area.
What is congestion pricing?
The program, which started Jan. 5, charges drivers a toll to enter Manhattan below 60th Street. It does not pertain to vehicles traveling on perimeter highways like the FDR Driver and the West Side Highway.
The initiative is the first of its kind in the United States but is based on similar programs in Sweden, the United Kingdom and Singapore.
Why was congestion pricing rescinded?
U.S. Transportation Secretary Sean Duffy, who was sworn in to the position Jan. 29, cited two main reasons for rescinding the approval of congestion pricing in a letter to New York Gov. Kathy Hochul.
First, the program did not provide a toll-free option, a move Duffy called “unprecedented” for a major urban area. In addition, the transportation secretary said the toll rate was set mainly to raise revenue for the MTA rather than reduce congestion.
What are the benefits of congestion pricing?
MTA CEO and president Janno Lieber said the program is “working even better than people hoped” in an interview on the “Mornings on 1” news show Thursday.
In January, Lieber said, there were 1.2 million fewer cars on New York streets compared to the same time period last year. He also highlighted much faster travel times through areas that are normally congested, which in turn has led to more people checking out local businesses.
“Broadway is way up. Restaurant reservations are way up. There’s more foot traffic in the congestion zone than out of the congestion zone by a lot,” Lieber said. “Those are all indications that this is having a positive, not negative, effect on the economy.”
How much does congestion pricing cost?
According to the MTA, “The toll for passenger and small commercial vehicles (sedans, SUVs, pick-up trucks, and small vans) paying with a valid E-ZPass is $9 during the peak period and $2.25 during the overnight period, when there is less congestion. The toll for motorcycles is $4.50 during the peak period and $1.05 during the overnight period. These vehicles are charged only once per day.”
Peak hours are 5 a.m. to 9 p.m. on weekdays, and from 9 a.m. to 9 p.m. on weekends.
How did local officials react to the congestion pricing decision?
New Jersey Gov. Phil Murphy, who had previously filed a lawsuit to contest the congestion pricing program as presented, applauded Duffy and President Donald Trump for Wednesday’s move.
“While I have consistently expressed openness to a form of congestion pricing that meaningfully protects the environment and does not unfairly burden hardworking New Jersey commuters, the current program lines the MTA’s pockets at the expense of New Jerseyans,” the governor said.
Hochul, meanwhile, touted many of the same benefits as Lieber in her own statement criticizing the move to rescind congestion pricing.
“The MTA has initiated legal proceedings in the Southern District of New York to preserve this critical program,” Hochul said. “We’ll see you in court.”
What happens in the meantime?
Lieber, in response to a question during his “Mornings on 1” appearance, confirmed that congestion pricing will remain in place while the litigation proceeds. In other words, the MTA will not change anything about the program unless directed by the court.
“Something of this kind cannot be taken away without a federal court order,” Lieber said. “We’re going to fight it all the way.”
