NYC Congestion Pricing Plan Gains Federal Approval

The program would be the first cordon pricing scheme in the United States.

2 minute read

May 10, 2023, 5:00 AM PDT

By Diana Ionescu @aworkoffiction


Traffic in Manhattan New York

New York City traffic. | ILMRT / Wikimedia Commons

The U.S. Department of Transportation approved environmental reviews for New York City’s congestion pricing plan, clearing one of the city’s biggest obstacles to implementing the program.

As Daniel C. Vock explains in Route Fifty, the program, also known as cordon pricing, could raise up to $1 billion per year, much of which would go toward funding the city’s transit system. “The cordoned-off area would include all of Manhattan south of 60th Street. Tolls are expected to be between $9 and $23 per vehicle, but local officials have not yet decided the rate.”

Supporters of congestion pricing say the plan would boost public transit funding, improving service for transit commuters, and reduce congestion on roads, improving commutes for drivers.

While no other U.S. city uses congestion pricing yet, the practice has shown positive results in London, Stockholm, and other international cities. “Tiffany-Ann Taylor, vice president for transportation at the Regional Plan Association (RPA), said the effects on downtown streets should be quick to see once the tolling plan is put into place, even if it takes a few years for physical improvements to the subway system to take shape.”

Some local politicians are wary of the plan, saying it penalizes New Jersey workers who commute into the city. Taylor counters the claim, saying that “The fact of the matter is the folks who are commuting to New Jersey are mostly coming in through public transit … Folks who live in New Jersey and other parts of the region actually are benefiting directly from the program.”

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