New York City has been implementing a congestion pricing policy since January of this year and has collected approximately $2.157 billion by the end of April, close to the estimated $2.17 billion. This policy, the first of its kind in the United States, aims to reduce the flow of vehicles in and out of the city center, improve air quality, and raise funds for the century-old public transportation system.
The Metropolitan Transportation Authority (MTA), responsible for implementing the plan, anticipates a net revenue of $500 million for the entire year after deducting costs. This funding is intended to prepare for the issuance of bonds by the end of 2025 or the beginning of 2026. The MTA ultimately plans to raise $15 billion through bond issuance for upgrading transportation facilities.
Under the policy, starting from January 5th, most drivers entering the area south of 60th Street in Manhattan during peak hours are required to pay a $9 congestion fee. Despite ongoing controversies surrounding this measure, MTA data shows that the policy has started to yield results. By the end of April, the number of vehicles entering the area had decreased by approximately 8.1 million, with a daily average reduction of 11%.
The policy is also facing challenges from the federal government. Transportation Secretary Sean Duffy believes that congestion fees impose a burden on working families and small businesses. In February, he overturned the previous approval of the policy by the Biden administration, arguing that the plan did not offer fee-free alternative routes. Duffy even threatened to suspend related federal funding or approval processes starting from May 28th if the MTA did not withdraw the congestion fee.
However, U.S. federal district Judge Lewis Liman ruled on the 27th that the federal government would not take any intervention actions before June 9th and would review whether the federal government has the legal authority to block the policy during this period. This decision represents a partial victory for the MTA, ensuring that the funding plan can continue to move forward.
Public support for the policy has also been gradually increasing. According to a poll conducted by Siena College from May 12th to 15th, 39% of registered voters support retaining the congestion fee, a significant increase from 29% in December last year.