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On Sunday, New York made history as the first U.S. city to introduce a congestion charge zone. This initiative aims to alleviate traffic congestion and generate billions of dollars for local transit, despite facing numerous delays and legal battles over the years.
Drivers heading into some of the most hectic areas of Manhattan during peak times will now have to pay a $9 fee. On Sunday morning, New York’s Metropolitan Transportation Authority declared that the congestion relief zone, extending from Central Park’s southern boundary to the southern tip of Manhattan, was fully up and running.
Originally priced at $15, this plan was temporarily halted by New York Governor Kathy Hochul last June but has since been relaunched at the reduced rate. The revised program is anticipated to cut the number of vehicles entering the zone each day by about 10%. Additionally, it’s projected to bring in $15 billion, which will be channeled into public transit developments by the MTA.
At a launch event just hours before the scheme went into effect, MTA Chair Janno Lieber remarked, “We’ve been working on this for five years, but spend just five minutes in midtown and you’ll see why addressing traffic congestion is crucial. We’re demonstrating that New York confronts its challenges head-on.”
Governor Hochul had initially hit the pause button on this plan, worried that the extra costs for drivers might hurt some Democratic candidates in November elections, especially since New Yorkers are already grappling with rising living costs.
A last-ditch effort by New Jersey to halt the project in federal courts failed. They sought compensation, claiming increased traffic on the far side of the Hudson River would cause environmental damage. However, the judge noted that the Federal Highway Administration still needed to weigh in on the plan.
Despite its launch, the scheme’s future remains somewhat uncertain. Some Republicans are urging President-elect Donald Trump to withdraw federal backing, and others in the GOP are proposing new legislation to halt congestion fees.
With New York’s congestion pricing, a reduced off-peak charge of $2.25 will apply for late-night drivers traveling between 9 p.m. and 5 a.m. on weekdays and from 9 p.m. to 9 a.m. on weekends. Small trucks will face a $14.40 toll during peak times, while larger vehicles will be charged $21.60.
Inrix, a traffic monitoring service, named New York the most congested city worldwide last year. The average driver spent 101 hours stuck in traffic, costing the local economy a staggering $9.1 billion.