Congestion Pricing on Track to Fill Transit Funding Gap, MTA Says
MTA Officials Detail First 27 Days of Toll Revenue
Since the Jan. 5 launch of congestion pricing, the vehicle-tolling program is on track to raise big bucks for much-needed transit upgrades, MTA officials said Monday — even as President Donald Trump targets it for termination.
Early Results Indicate Strong Revenue Streams
At the transit agency’s monthly committee meetings Monday, officials detailed how the first 27 days of tolls on motorists driving into Manhattan south of 60th Street generated $48.6 million in revenue. According to the MTA, that amounted to $37.5 million in net revenue after $9.1 million was spent on operating vehicle scanners, a customer service center, and credit-card fees, along with $2 million for setting up environmental mitigation measures in The Bronx and elsewhere.
Benefits Beyond Revenue
The new details on the money being raised for big-ticket capital expenditures such as new train cars, modern subway signals, and increased accessibility serve as an addendum to other benefits such as less-cluttered streets and faster buses that officials have been touting for weeks.
"It seems from all indicators that the program is reducing traffic, but also projecting the revenue to be on target," Jai Patel, the MTA’s deputy chief financial officer, said during a committee meeting.
MTA’s Funding Gap
The expected $500 million in net revenue from congestion pricing’s first full year – a haul which is expected to increase in the future – will allow the MTA to borrow more through bonds and help fill the more than $15 billion funding gap in the transit agency’s nearly $55 billion 2020-2024 capital plan.
Early Warning Signs of Success
To reach its target for the year, the MTA will have to pull in about $41.6 million in net revenue a month on average. In the 27 days in January when the new tolls were collected, MTA officials say they were satisfied with the dollar amounts during what was a bitterly cold month – with money expected to flow in as temperatures climb and more vehicles are on the road.
"The spring, the summer, some of the fall, are higher traffic months," Patel said. "So we believe we are on track for the $500 million in net revenue based on early January."
Trump’s Veto Threat
But optimism over the early victories was tempered after President Donald Trump last week proclaimed "CONGESTION PRICING IS DEAD," and the head of the federal Transportation Department called for the "orderly cessation of toll operations." The order to shut down the Manhattan tolling system was accompanied by Trump’s gloating, "LONG LIVE THE KING!" on social media, with Hochul firing back that "New York hasn’t labored under a king in over 250 years." The MTA immediately filed legal papers to fight the Trump declaration in court.
MTA’s Legal Battle
The tolling scanners at Manhattan’s gateways to the congestion relief zone remain on while the MTA embarks on its latest legal skirmish over the vehicle-tolling scheme – and after Gov. Kathy Hochul met with Trump last week to make the case for congestion pricing.
Public Reaction
MTA board member Neal Zuckerman on Monday praised the "brilliant and necessary new revenue stream," while saying the federal government’s efforts to undercut congestion pricing are sticking it to the city and the region.
"Every New Yorker is a victim of this situation," he said. "There is no question that New York is the economic engine of this nation and arguably the planet – and yet we are having someone muck with the economic engine of the city and the region."
Ridership and Accessibility
During her Oval Office sitdown with Trump on Friday, Hochul shared a presentation highlighting some of the early successes of congestion pricing.
In a weekend interview with the New York Post, Trump called it "a very cordial meeting" but added "I don’t see how I can back off."
The MTA has said motorists and bus riders on Hudson and East River bridge and tunnel crossings are enjoying faster commutes into and out of Manhattan in the first weeks of congestion pricing. In addition, numbers show that ridership is up in the subway, on some express bus routes, and on the Long Island Rail Road and Metro-North commuter rail services.
Conclusion
Congestion pricing is on track to fill the funding gap, and its success is evident in the early results. However, the program’s future is uncertain as the Trump administration targets it for termination. The MTA is committed to fighting for this necessary revenue stream, and the public is urged to support the program.
FAQs
- What is congestion pricing?
Congestion pricing is a vehicle-tolling program that charges a fee to motorists driving into Manhattan south of 60th Street. - How much revenue has the MTA generated so far?
The MTA has generated $48.6 million in revenue in the first 27 days of the program. - What is the expected revenue for the first full year of the program?
The MTA expects to generate $500 million in net revenue for the first full year of the program. - What is the funding gap for the MTA’s 2020-2024 capital plan?
The MTA’s 2020-2024 capital plan has a funding gap of more than $15 billion. - What are the benefits of congestion pricing beyond revenue?
Congestion pricing is expected to reduce traffic, improve air quality, and increase ridership. It is also expected to improve accessibility and reduce congestion in the region.
