New York Congestion fee introduced

January 17, 2025

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Traffic in Manhattan’s busiest areas dropped by 7.5% last week after New York City introduced a $9 congestion fee on January 5.

This new charge, the first of its kind in the United States, aims to reduce traffic and fund improvements to the city’s subway and bus systems. Officials reported that 273,000 fewer cars entered Manhattan’s central business district compared to the previous week.

The plan charges passenger cars $9 during peak hours, while trucks and buses pay up to $21.60. Nighttime fees are discounted by 75%. Taxis and ride-share vehicles like Uber and Lyft face smaller charges, with fees of 75 cents and $1.50 per trip, respectively. Drivers pay the fee just once per day using electronic license plate readers.

Officials are already seeing positive results. Janno Lieber, head of the Metropolitan Transportation Authority said, “Traffic is down, the streets feel safer, and buses are moving faster.” Morning bus speeds improved significantly, and travel times across Manhattan’s river crossings were 30-40% faster.

The program is modelled after similar systems in cities like London, which began charging drivers in 2003, as well as Singapore and Stockholm. Before the fee, Manhattan had some of the most congested traffic in the U.S., with average speeds as low as 7 mph.

The fee is expected to generate $500 million in its first year, supporting $15 billion in funding for subway and bus upgrades. New York Governor Kathy Hochul said 80% of the money will go toward these systems, while the remaining 20% will improve commuter rail lines.

Although some criticised the plan, including opposition from former President Donald Trump and neighbouring New Jersey, early data suggests the fee is already making Manhattan a less congested and more efficient city for travellers.

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