Back in 2021, NYC’s ‘Congestion Pricing Plan’ was introduced — which planned an additional toll for commuters headed into New York City’s business hub, south of 60th Street. After pushback from NJ officials and residents alike, including NJ Governor Phil Murphy attempting to block the new toll, the plan was indefinitely halted in June of 2024. Now, a revised plan has been announced by New York Governor Kathy Hochul, which is set to start in January 2025. Read on for the latest updates on NYC’s Congestion Pricing Plan.
The New Plan as of November 2024
New York Governor Kathy Hochul announced the new plans for the new NYC’s Congestion Pricing Plan at a press conference on Thursday, November 14th, per Patch New York City. The new congestion toll will be $9, and is set to take effect in January 2025. Governor Hochul claimed that the toll would be enough to raise $15 billion for the MTA.
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Included in the plan is an immediate increase to a number of outer-borough bus routes, as well as discounts after 9PM. Drivers who earn less than $50,000 per year will also receive a 50 percent discount on every toll after the 10th toll each month.
New Jersey Governor Phil Murphy released another statement following the announcement, saying he firmly opposes “any attempt to force through a congestion pricing proposal in the final months of the Biden Administration,” and that his administration will “continue the fight to block this plan in court.”
We will update this post as more details come out.
Background from June 2024
On June 5th, 2024, it was announced that New York Governor Kathy Hochul had directed the MTA to indefinitely pause the NYC Congestion Pricing Plan. Per The New York Times, the decision was made because the planned congestion pricing system “risks too many unintended consequences”. Governor Hochul only needed the approval of the authority’s board to halt the implementation of the plan. In particular, Governor Hochul noted the impact the fees would have on lower- and middle-class families.
New Jersey Governor Phil Murphy released a statement on the decision on June 5th:
“I want to thank Governor Hochul for pausing the implementation of congestion pricing in Manhattan’s Central Business District.
Although we have had a difference of opinion with our colleagues in New York on congestion pricing implementation, we have always had a shared vision for growing our regional economy, investing in infrastructure, protecting our environment, and creating good-paying jobs on both sides of the Hudson River. We fully embrace the notion that the success of Manhattan is inextricably linked to the prosperity of the entire Tri-State Area.
Governor Hochul and Mayor Adams have been strong, collaborative governing partners and I look forward to continuing to work closely with them for the benefit of all of our residents.
I’d also like to thank Congressman Josh Gottheimer for his strong partnership and advocacy over the years on this issue.”
About the Original Plan
The New York Metropolitan Transportation Authority (MTA) had planned an additional toll for commuters headed into New York City’s business hub, south of 60th Street. This “congestion pricing plan” aimed to discourage individuals from driving into the most crowded parts of Manhattan, thus curtailing a negative environmental impact and reducing traffic overall.
The additional toll would have cost anywhere from $9 to $35 simply to enter the “congestion zone.” The $1 billion a year collected from drivers would then be used to fund public transportation projects.
As far as the actual pricing, reports shared that:
- Cars would be charged an additional $15 to enter Manhattan at 60th Street and below.
- Trucks would be charged between $24 and $36, depending on size.
- Taxis were exempt from a major fare hike of $15 — though Uber and Lyft Surcharges would be $2.50, and yellow and black taxis would have an additional fee of $1.25 per ride.
- Motorcycles would be charged $7.50 to go into the city.
- These rates would only happen once per day; if you drive into the city, then out, then back in again — you’d only be charged once in 24 hours.
- The rates would be in effect from 5AM to 9PM on weekdays, and 9AM to 9PM on weekends.
- There were some planned exemptions, with the pricing — most included government and emergency vehicles, school busses with a contract with the NY Department of Education, city-owned vehicles, and vehicles carrying people with disabilities.
- The plan was set to take effect on June 30th, 2024, but was indefinitely halted shortly before that date.
The MTA board overwhelmingly voted to approve congestion pricing in December 2023, saying charging drivers to enter a swath of Manhattan would contribute millions of dollars to the aging transit system.
Officials on this side of the Hudson, including Governor Phil Murphy, were largely opposed to such a hike, noting that it would unfairly impact Garden State commuters. City dwellers who live in the outer boroughs have also voiced concerns that their communities would bear additional costs for an initiative that would bring cleaner air, reduced noise, and less gridlock to Manhattan. You can read more about the pushback in our previous article here.
Ironically, NJ Transit also raised fares by 15% this summer, and a 3% yearly increase will take effect in summer 2025.
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We will update this post as more details become available. For now, stay in the know on all of the local news by following @thehobokengirl on Instagram and TikTok, and sign up for our newsletter here.