Lancer Insurance
Thursday, November 21, 2024
NY congestion pricing

It’s baaaack: The on-again, off-again congestion pricing toll is being revived in New York City after a brief stay of enforcement this summer. Congestion pricing will now go into effect January 5, 2025.

The new program will see a lower price tag—down to $9 from $15—and will assess motorists entering south of 60th Street in Manhattan during peak weekday hours (5 a.m.-9 p.m.) and weekend hours (9 a.m.-9 p.m.) via E-ZPass. It excludes FDR Drive, West Side Highway, and the Carey Tunnel. Those without the electronic toll tag will be billed by mail via plate reader and will have to cough up a higher fee. Buses would be charged $14.40-$21.60 depending upon the hours. Users of Uber and Lyft will see a $1.50 per ride surcharge, while the taxi surcharge is currently 75 cents. Read more about the For-Hire Vehicle toll structure here.

NY congestion pricing

You’ll remember industry associations—national and local—cheering the unexpected postponement of the controversial program, the proceeds of which would go toward funding improvements for the city’s public transit system, MTA. Based on the previous schedule of $15 per passenger vehicle, the MTA expected to see upwards of a $1 billion per year from these fees; however, it’s uncertain how much the new fees will raise—or how the MTA plans to make up the shortfall for their anticipated subway and bus upgrades.

New York Governor Kathy HochulNew York Governor Kathy Hochul

New York Governor Kathy Hochul, who paused the program shortly before it went into effect this summer—says that tolls are necessary for the future of the city’s vast public transit system. Tolls are projected to stay the same through 2027, at which point they will jump to $12 and then to $15 by 2031 for most passenger vehicles ($18 and $22.50, respectively, without E-ZPass).

The program—groundbreaking in the US but common in parts of Europe—would be the first of its kind in the nation. Its goal is to reduce gridlock and pollution, while encouraging the use of public transportation.

Click here to read more about the tolls according to vehicle and hours of entry.  

[11.19.24]