New York congestion pricing plan gets federal approval

New York congestion pricing plan gets federal approval

By Trains Staff | November 23, 2024

| Last updated on August 6, 2025


Tolls in lower Manhattan, to provide funding for MTA capital projects, set to begin Jan. 5

Map of Lower Manhattan
The area covered by New York’s congestion pricing plan. MTA

NEW YORK — New York’s congestion tolling plan has received federal approval, meaning the toll of $9 for most drivers entering lower Manhattan will take effect Jan. 5, 2025.

The program, with goals of reducing traffic below 60th Street and funding Metropolitan Transportation Authority capital programs, was approved by the Federal Highway Administration on Friday, the New York Times reports. FHA approval was required because of federal funding for New York street projects.

The $9 peak-period toll for most drivers was reduced from the originally planned figure of $15 when New York Gov. Kathy Hochul revived the program last week, after blocking it in June because, she said, she was concerned about the economic impact for New Yorkers. [See “New York governor introduces revised Manhattan congestion pricing plan,” Trains News Wire, Nov. 14, 2024]. The toll will rise to $12 in three years and to $15 by 2031, but the lower figure means it will initially raise about $500 million annual for the MTA, instead of the previously projected $1 billion.

The MTA had approved the new plan last week, then sought federal approval as quickly as possible, given President-elect Donald Trump’s vocal opposition to the plan. Trump said earlier this year in a social media post that he would kill a congestion pricing plan during his first week in office, but that is expected to be more difficult with it already in place when he takes office. Still, the plan faces at least nine lawsuits attempting to block it; lawyers in four of those lawsuits were in court on Thursday, Nov. 21, seeking injunctions to block its introduction, Spectrum News reports.

The MTA has announced a series of 60-minute webinars explaining the congestion pricing program Dec. 4, including sessions for those seeking information on the program’s disability exemption and low-income discounts. More information is available here.

Share this article