New York City’s Congestion Fee Kicks Off Amid Controversy
New York City drivers on Monday had to pay a $9 fee to enter Manhattan, a move aimed at raising billions for mass transit and reducing traffic jams. The congestion charge, which took effect on Sunday, is the first of its kind in the United States.
New Jersey had tried to halt the fee pending an appeal, but a judge declined to do so, allowing the city to implement the charge before President-elect Donald Trump’s inauguration on January 20. Trump, who opposes the fee and has a Manhattan residence, had vowed to seek to block it.
The city is imposing a $9 fee on passenger vehicles during the day in Manhattan below 60th Street, while trucks and buses will pay up to $21.60. The fee will be reduced by 75% at night, and charged through electronic license plate readers. Cars will pay a daily fee, regardless of how many trips they make, while taxis will pay 75 cents per trip and ride-share vehicles will pay $1.50 per trip.
The fee, which is seen as a successful model in cities like London, is expected to reduce traffic in the city’s most congested district by 11%. With over 700,000 vehicles entering the district daily, slowing traffic to around 7mph, the city estimates the congestion charge will bring in $500 million in its first year. The revenue generated will be used to fund $15 billion in debt financing for subway, bus, and mass transit improvements.