Why New York Made a U-Turn on Congestion Pricing

New York City’s transit system is moving forward with a plan to start charging motorists a fee to drive into crowded midtown Manhattan starting Jan. 5. The aim of the congestion pricing initiative, which will be the first in the US, is to reduce traffic and pollution while raising money for the city’s subways, buses and commuter rails.

Weeks before the program was originally set to begin on June 30, Governor Kathy Hochul abruptly halted it. For the revised effort, which the Metropolitan Transportation Authority approved on Nov. 18, Hochul slashed the pricing structure by 40%. Most drivers will now pay $9, a fee that’s set to increase to the original $15 charge in 2031. Reviving congestion pricing creates a potential showdown with President-elect Donald Trump, who has previously threatened to terminate the plan once he returns to the Oval Office.