New York City’s Congestion Pricing Plan Starts on Jan. 5: Everything You Need to Know

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The controversial and much-debated plan will charge drivers who enter lower Manhattan a new daily toll.

On Jan. 5, 2025, the long-debated and fiercely contested policy of congestion pricing will come into effect in New York City.

With its passionate supporters and equally vocal detractors, the practice is expected to have far-reaching consequences for commuters, the transit system, the city, and the environment.

With the implementation of congestion pricing, the Metropolitan Transit Authority (MTA) hopes to raise money for highly ambitious upgrades to New York’s aging transit systems.

Here are answers to commonly asked questions about congestion pricing, what it portends, and why the policy still has outspoken proponents and detractors.

What Is Congestion Pricing?

Congestion pricing is a policy of charging a standard $9 fare to drivers of cars, SUVs, small vans, and pickup trucks entering Manhattan below 60th Street from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends.

Does the Fare Vary?

Yes, the MTA has devised a detailed plan with many pricing levels depending on vehicle type and the time of entry.

From 9 p.m. to 5 a.m. on weekdays and from 9 p.m. to 9 a.m. on weekends, the $9 fare goes down to $2.25 for drivers of cars, SUVs, small vans, and pickup trucks.

Small trucks and buses will pay $14.40 during peak hours and $2.25 during non-peak hours. For motorcycles, the fare is $4.50 during peak and $1.05 during non-peak times.

Trucks, buses, taxis, and Ubers are also covered under the pricing schedule.

Commuters with an annual income under $50,000 can take advantage of discounted pricing after their 10th commute in a given month.

In 2028 and subsequent years, the fares will go up, subject to the governor’s and the MTA’s approval.

Was $9 Always Envisioned?

No. The standard fare was originally set to be $15, but supporters of the scheme hit a political roadblock, as advocates for commuters argued that amount was too high for the average worker to meet.

Why Is It Taking Effect in January?

Congestion pricing has been the subject of a protracted political and legal battle. New York Governor Kathy Hochul has wavered on when it should start.

By Michael Washburn

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