New York Brings Back Hated Congestion Tax in 2025

Written by Camilla Jessen

Nov.18 - 2024 7:07 PM CET

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Photo: Pixabay
Photo: Pixabay
It was scrapped before, but now it’s back.

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New York is set to reintroduce its controversial congestion charge, requiring nearly all drivers entering the city’s central areas to pay up. This was reported by Boosted.

Starting January 5, 2025, motorists heading into the Central Business District (CBD) will face a toll of $9 for cars and $4.50 for motorcycles. Larger vehicles like smaller trucks and buses will be charged $14.40, while larger trucks and tourist buses will pay $21.60.

Discounts will apply for nighttime travel.

This charge was backed by New York’s mayor and it aims to combat traffic congestion, improve air quality, and generate much-needed funds for public transportation.

According to city officials, the initiative will raise an estimated $15 billion, which will be used to upgrade and expand the Metropolitan Transportation Authority (MTA) services.

Authorities project a 5% decrease in car travel and a 10% reduction in vehicle numbers in the CBD once the charges take effect.

Initial Backlash

Originally planned for 2023, the measure faced significant criticism, particularly over its financial burden on motorists.

In response, New York Governor Kathy Hochul announced a lower fee structure than initially proposed.

“A $15 fee was simply too high given the current economic conditions,” Hochul explained. “By reducing the daily charge to $9, we’ll save daily commuters nearly $1,500 a year, which is a meaningful difference for many families.”

While commuters and motorists face the main charges, other changes target rideshare and taxi services. Uber and Lyft rides will incur a $1.50 fee per trip, and taxi rides will see a $0.75 charge per ride. Critics warn these costs may be passed on to passengers, adding to the financial strain.

There are, however, exceptions for certain groups.

Low-income residents and disabled individuals will be eligible for discounts or exemptions, aiming to ease the impact on vulnerable populations.

The Bigger Picture

City officials argue that the congestion charge is about more than raising money. The plan is designed to reduce pollution, cut traffic, and fund a more efficient public transit system.

Whether the measure succeeds or deepens frustrations among drivers, one thing is certain: New York’s roads and wallets are about to feel the impact.