To Charge or Not to Charge: That is the Question About Congestion Pricing in NYC

**Figure 1**: Congested Manhattan Street

By Preston Ferraiuolo ‘26

Traffic: an annoying headache that any urban resident has undoubtedly experienced too many times. New York is one of the most congested cities globally; any street in Manhattan is bound to be filled with cyclists, jay-walking pedestrians, yellow cabs swerving in and out of traffic, loud buses, and above all, personal cars. Every Manhattan block is filled with the cacophony of honking car horns, frustrated pedestrians exclaiming, “I’m walkin’ here,” and the hum of idling tailpipes waiting for the slightest opportunity to move forward an inch in traffic. Although the city speed limit is 25 miles per hour, the average speed of a car in midtown Manhattan is a meager 4.7 miles per hour. Congestion is a problem, but fortunately, the City and State governments have finally announced a solution: congestion pricing.

The premise is simple: charge cars a toll when they enter a crowded, traffic-prone area to lessen congestion. Although first proposed by former Mayor Michael Bloomberg, congestion pricing was stalled by the State Assembly in Albany. In March 2019, at the urging of then-Governor Andrew Cuomo, the state legislature gave the green light for transit agencies to begin formulating plans to implement congestion pricing. The State hopes to use the revenue from charging tolls to help fix NYC’s aging transit system, which is facing a fiscal and infrastructure crisis—a crisis that has only worsened since the beginning of the pandemic. Two plans have been drafted by the Metropolitan Transportation Authority (MTA). Both charge vehicles entering any part of Manhattan south of 60th Street utilizing the existing EZ-Pass system. One proposal is to charge vehicles a flat $9 toll, and the other is to charge vehicles a $23 toll, but rebate drivers the cost of tolls paid to cross bridges and tunnels entering Manhattan. Vehicles that do not enter local streets but remain on either the FDR Drive or the West Side Highway will be exempt. The rollout of congestion pricing is still a priority for New York, even as the City faces the enduring economic fallout from COVID, as it is expected to raise as much as $1 billion annually.

Wait…Does Congestion Pricing Actually Work?

Many critics argue against congestion pricing and claim it will never work in a city as large and busy as New York. However, this is not the case. There is arguably only one other city in the world on par with NYC concerning economic importance, population, and global significance: London. Transport for London (TfL) instituted a “Congestion Charge” in 2003. It charges cars £15 when entering the center of London. The program has been overwhelmingly successful and eliminated 39% of private cars on the road, significantly reducing travel times and gridlock. It has also been an environmental success for London, as the congestion charge was directly linked to a 20% reduction in the city’s carbon emissions. The London Assembly mandated that all fees from the congestion charge had to be spent on public transit. It provides £1.6 billion annually for improving the London Underground and bus system, which has seen record ridership in recent years. Many Londoners cite the system’s increase in reliability, thanks to the funds from congestion pricing, as a reason they now choose to take public transit. Furthermore, like the proposal in New York, London’s plan was not initially popular, despite its projected benefits. It faced numerous legal challenges and public outcry. But eight months after implementing the program, the positives were apparent, as most Londoners approved the charge. These feelings have been replicated in other cities that have implemented congestion pricing, such as Stockholm and Singapore, and will undoubtedly be replicated in New York.

New York’s Public Transit is Falling Apart, Literally

New York is in the midst of a transit crisis. The public transit system is old. After years of mismanagement, it does not have enough funds to invest in the necessary capital improvements to modernize. Before the pandemic, the MTA’s fiscal situation was so dire that then-Governor Cuomo warned that commuters could face up to a 30% fare increase and a 40% reduction in service if congestion pricing was not implemented as a funding source. However, Governor Kathy Hochul said that these increases are no longer imminent due to the passing of the federal bipartisan Infrastructure Investment and Jobs Act. Nonetheless, the $10 billion of infrastructure funding allocated to the City will not cover the needed investment to modernize the system. New York’s transit is in such disrepair that the MTA’s Capital Spending Plan requires $55 billion just to fix the current system. While the federal funding is able to keep the system operating today, congestion pricing will provide the necessary funding, a minimum of $15 billion, to modernize NYC’s public transit system, bringing it up to international standards and permitting mass transit to run in the City for years to come.

Cleaner Air, Cleaner Climate

Congestion pricing provides much needed environmental benefits to New York. Fewer commuters will drive into the city because of the cost, saving a significant 950,000 metric tons of carbon emissions annually. But fewer cars spewing CO2 also means less congestion and less idling, allowing cars to operate more efficiently and thereby further reducing emissions. Charging cars will also incentivize commuters to take public transit, bike, or walk to work to avoid fees. These forms of transport have dramatically lower carbon footprints. Also, congestion pricing allows the MTA to enhance the experience of traveling by public transit. Then commuters will view the subway and buses as more reliable and will be more likely to take them instead of driving. Furthermore, congestion pricing can also incentivize commuters to make green changes, such as driving an electric vehicle over a traditional gas car. Transport for London exempts electric vehicles from their congestion charge, resulting in many Londoners switching from gas to electric to avoid the fee. Lawmakers in New York have expressed interest in implementing the same program. Having more electric vehicles on the road is an excellent change for the environment, leading to less localized emissions and creating a positive secondary benefit of congestion pricing.

Critics claim that since cars will be discouraged from traveling in Manhattan, more drivers will opt to take routes outside the central business district, resulting in greater emissions outside Manhattan. Advocates against congestion pricing particularly mention the South Bronx, an area of the City already plagued by poor air quality due to numerous major highways that transverse it. As the South Bronx is also an economically disadvantaged area, high pollution often results in greater health disparities and poorer quality of life for its residents. Some fear congestion pricing would only increase these inequities; however, this is far from reality. The environmental impact study conducted by third parties of the MTA’s plan found that there would be no adverse effects on air quality as a result of congestion pricing. In fact, according to Figure 2, data from the Environmental Protection Agency shows that the health of residents in the Bronx, measured as reductions in health costs, will actually improve due to congestion pricing! Only one county in the metropolitan area, Bergen County in New Jersey, will be disadvantaged, albeit only minimally. However, considering that Bergen County is one of the most affluent counties in New Jersey, the county will have ample resources to mitigate any disadvantages outweighed by benefits to the greater metropolitan area as a whole. While the climate crisis is much larger than New York, congestion pricing offers the city a way to positively impact the fight against climate change.

Another Toll? Really?

The most significant downside of congestion pricing that critics point to is cost, especially for lower-income New Yorkers. NYC has one of the highest costs of living anywhere globally, and a $15 toll is an added burden, especially considering that the pandemic economic recovery will likely last a few years. Nevertheless, it is essential to consider that most New Yorkers commute to work via public transit and that driving to work is uncommon. Unlike the rest of the country, most New Yorkers do not rely on cars; therefore, the congestion surcharge will not be a huge inconvenience for most commuters. Before the pandemic, only 16% of all commuters into Manhattan drove. Now the 24% that drive in are overwhelming affluent New Yorkers with the means to pay this toll. Even so, the City and State have also aimed to make congestion pricing more equitable by creating a tax credit for those who make less than $60,000 a year. Besides, it is estimated that wasted time in traffic costs the New York economy $11 billion a year. Limiting this loss by alleviating traffic will likely boost the City’s economy, helping all New Yorkers, including those for whom the increased cost of living might present a burden. The environmental benefits and upgrades to public transit will be more beneficial for NYC in the long term than not implementing congestion pricing because of cost.

Conclusion

On the whole, congestion pricing will be a beneficial change for New York City. Traffic harms us all, and this program can crucially limit it. By benefiting the environment and improving public transit, the benefits of congestion pricing easily outweigh the costs. After implementing congestion pricing seventeen years ago, London has become a more green and less congested city. The COVID-19 pandemic was one of New York’s most significant historical challenges, but it is time to pick up the pieces and rebuild. Congestion pricing must be a crucial part of building back New York City better.