NYC could become the first US city with a congestion toll, easing (and adding to) commuting woes
Driving gets surge pricing… New York City could become the first US city to charge congestion tolls, and others could follow to ease traffic troubles. Last month the Federal Highway Administration greenlighted Gotham’s congestion-pricing plan, and yesterday was the final day for public objections. The Biden admin is expected to give final approval soon, which would mean a pricier commute for millions.
Big fees: As soon as next spring, drivers heading below 60th Street could face congestion tolls ranging from $9 to $23, depending on peak traffic hours.
Small print: Cars carrying people with disabilities and emergency vehicles are expected to be exempt. Residents earning under $60K/year may also qualify for a tax credit.
FYI: The Big Apple’s expected to rake in $1B+/year from the tolls, helping offset billions in losses as fewer people take public transit and splurge on lunch bowls (blame: WFH).
Feeling extra congested… and it’s not spring allergies. Higher fuel prices + more congestion (think: burning gas while stuck in traffic) cost the average commuter almost $900 last year — nearly 3X as much as in 2021. While no American cities have adopted congestion pricing yet, Stockholm, London, Singapore, and others have had it for years. They’ve seen fewer traffic jams — and Stockholm saw fewer asthma attacks because of less pollution. Now traffic-plagued Los Angeles is also considering charging drivers during peak hours.
Clearer lanes come at a cost… Taxi and ride-hail drivers have condemned congestion tolls, saying they’ll hurt biz and raise fares. The MTA says fare hikes triggered by the new tolls could curb cab and ride-hail demand by 17%. Meanwhile, commuters worry that extra fees could strain their already tight budgets as more employers mandate a return to the office.