New York City’s roads are quickly becoming pathways of the haves versus the have-nots.
As the ball dropped on Times Square to ring in the new year, it brought along a new change to the streets of NYC: a toll.
Specifically, it’s called “congestion pricing,” and once your car, truck or motorcycle goes south of 61st Street toward Midtown, you will be paying for that privilege.
Is this policy equitable? No. Is it profitable? According to this website that tracks the money collected in real time, absolutely.
How did we get here?
Similar to initiatives in London, Stockholm and Singapore, NYC will become the first U.S. city to implement a toll of this kind.
In 2007, NYC Mayor Mike Bloomberg began this process. After years of research studying the effects of how a system like this could reduce traffic and improve public health—and many years of political wrangling—its long-awaited debut, celebrated with sign unveilings and press on hand, occurred on January 5, 2025.
Congestion pricing is supposed to encourage people out of cars and onto public transit, although this option isn’t feasible for some.
Commercial trucks, cars and motorcycles driving in Manhattan south of 61st Street are being charged between $3.60 and $21.60 per trip, depending on the truck size and time of day. Less traffic could mean above-ground commuting and deliveries become quicker and more cost efficient.
Time is money, right?
The Investment
Beyond the initial investments of researching and launching the system, communicating with the public about it and installing street signage throughout the impacted area, ongoing costs include enforcing the system, such as cracking down on “ghost cars” and covered license plates. Is all of this expended time and effort worth it?
According to a New York Times report, this new policy will bring in $500,000,000 a year. That averages around $3 million a day of revenue for the city.
But is it an equitable system, especially since NYC is already one of the most expensive cities in the world to live and do business in?
According to the Metropolitan Transportation Authority (MTA), approximately 1.3 million people currently take public transportation into the affected district for work, compared to the 143,000 who drive in.
Those who already travel via the MTA will likely see few changes, but those who work, make deliveries, drop their children off at school and so forth will accumulate charges every day, and that can add up fast.
Not to mention the additional cost to your quick rides across town. Taxis, green cabs and black cars will pay $0.75 per trip, and Uber, Lyft and other for-hire companies will pay $1.50 per trip. These added costs will be passed on to consumers.
Can you Reverse Congestion Pricing?
Less than a week after this new policy and system were implemented, Jersey City Mayor Steven Fulop is floating the idea of a “reverse congestion pricing” toll.
In November 2024, President-elect Donald Trump called the charge a “regressive tax” that will further strain the economy of America’s largest city. Since he built much of his business empire in Manhattan, he’s especially attuned to this subject and has been very vocal about his stance. When Trump takes office on January 20, it remains to be seen how his administration will address this particular situation.
In the end, residents will—and should—have an opportunity to vote on this issue with their actions, their feedback and, most importantly, their wallets.