Thursday, October 2, 2025

Congestion Pricing

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Gov. Kathy Hochul to Revive Congestion Pricing Plan with $9 Daily Toll

Gov. Kathy Hochul will announce a revised plan to launch the country’s first congestion pricing program, with a daily toll rate of $9, multiple sources told THE CITY. The plan will be implemented by late December, south of 60th Street in Manhattan.

Background
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The Central Business District Tolling Program was initially paused by Hochul in June, due to concerns over the $15 daily toll rate being too high for hard-working New Yorkers. The pause created a $16.5 billion funding gap in the MTA’s current five-year capital program, which carries a price tag of more than $50 billion.

The transit agency’s board approved a pared-back budget in July, which included delaying signal upgrades on several subway lines, deferring elevator installations at 23 stations, and the purchase of new subway cars and 250 electric buses.

Revised Plan
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The revised plan will feature a $9 base toll, which could eventually be increased. The toll will be used to fund mass transit, unclog streets, and improve public health by reducing air pollution.

Advocates’ Reactions
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Transit and environmental advocates have welcomed the revised plan, saying it’s now or never for a vehicle-tolling plan designed to raise billions of dollars for MTA capital improvements and reduce traffic in the most congested urban area in the country.

“I hope it moves forward at this point, but our message all along has been that you’ve got to fund transit,” said Joseph Rappaport, executive director of Brooklyn Center for Independence of the Disabled. “If you do it one way, fine. If you do it another way, fine. But you need to just do it.”

MTA Board Members’ Briefing
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Multiple sources said MTA board members will be briefed this week on the latest iteration of congestion pricing. The $9 base toll was among the scenarios that were initially floated as options.

London’s Congestion Pricing Experience
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London, Stockholm, and Singapore are among the international cities that have turned to tolling vehicles in their urban core. London’s then-mayor, Ken Livingstone, pushed through a congestion charge in 2003.

New Jersey’s Opposition
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New Jersey Rep. Josh Gottheimer has vowed to continue pushing against the plan, labeling it an “utterly absurd” move to hit residents of The Garden State with new fees for driving into the city.

Conclusion
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The revised congestion pricing plan is a step in the right direction, but it’s crucial that the plan is implemented effectively and efficiently. The $9 daily toll rate is a significant reduction from the initial $15 rate, and it’s hoped that it will encourage more drivers to switch to mass transit.

FAQs
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Q: What is congestion pricing?
A: Congestion pricing is a vehicle-tolling plan designed to raise billions of dollars for MTA capital improvements and reduce traffic in the most congested urban area in the country.

Q: What is the revised toll rate?
A: The revised toll rate is $9 per day, which could eventually be increased.

Q: When will the plan be implemented?
A: The plan will be implemented by late December, south of 60th Street in Manhattan.

Q: What is the purpose of the plan?
A: The plan is designed to fund mass transit, unclog streets, and improve public health by reducing air pollution.

Q: What is the reaction from New Jersey?
A: New Jersey Rep. Josh Gottheimer has vowed to continue pushing against the plan, labeling it an “utterly absurd” move to hit residents of The Garden State with new fees for driving into the city.

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