Home Money & Business Business Heading to New York City? Expect higher fees for driving into Manhattan’s crowded areas.

Heading to New York City? Expect higher fees for driving into Manhattan’s crowded areas.

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Heading to New York City? Expect higher fees for driving into Manhattan’s crowded areas.

NEW YORK — Following extensive discussions and numerous bureaucratic hurdles, New York City’s proposal to impose fees on drivers entering Manhattan is poised to launch this Sunday. This initiative, known as “congestion pricing,” aims to alleviate traffic congestion, decrease pollution levels, and generate revenue for public transportation systems. Governor Kathy Hochul announced this week that the state will proceed with the implementation of this plan.

For those planning to drive into Manhattan after January 5, here is what you should be aware of regarding the tolls. The charges will apply to the most congested areas of Manhattan, specifically south of Central Park, and will vary based on the time of day and whether vehicles utilize E-ZPass—an electronic toll collection system active in several states. During peak traffic times—which are identified as 5 a.m. to 9 p.m. on weekdays, and 9 a.m. to 9 p.m. on weekends—vehicles such as cars, SUVs, small vans, and pickup trucks equipped with E-ZPass will incur a fee of $9 once each day. Conversely, the toll will reduce to $2.25 during overnight hours.

Drivers not using E-ZPass will receive their toll charges via mail, facing higher rates: $13.50 during peak hours and $3.30 overnight. For motorcyclists, the toll will be set at half the regular car rate during peak times. Additionally, toll payments will vary for buses and trucks based on their size.

Exemptions from these tolls include certain emergency vehicles, school buses, and individuals with disabilities requiring transportation assistance. Moreover, low-income drivers who use the toll road ten times within a month may apply for a 50% discount for subsequent trips during that period. An additional benefit exists for those who have already paid tolls via the Lincoln Tunnel, Holland Tunnel, Queens-Midtown Tunnel, or Hugh L. Carey Tunnel during peak hours, where they can expect a credit on their E-ZPass of up to $3 for passenger cars and higher for larger vehicles.

However, with the upcoming increase in tolls for New Jersey bridges and tunnels, a vehicle entering via the Holland Tunnel during peak hours could face charges totaling $22, even after applying the credit.

For passengers using taxis or rideshare services like Uber and Lyft, there will be an added surcharge on fares for trips that take place within the Congestion Relief Zone. Specifically, the surcharge will amount to 75 cents for taxi rides and $1.50 for rideshare services.

The concept of congestion pricing is not new and has been implemented in various cities worldwide, including London, Stockholm, Milan, and Singapore. However, New York is pioneering this approach as the first city in the United States to officially adopt such a plan. Discussions around this initiative date back several years when it was first proposed by then-Mayor Michael Bloomberg in 2007, leading to state legislative approval in 2019. The plan faced significant opposition from various stakeholders, including politicians, commuters, and commercial drivers, and recently a federal judge dismissed New Jersey’s attempts to temporarily block the toll.

Supporters of congestion pricing, including environmentalists and public transit advocates, argue that this strategy will incentivize the use of public transportation, ultimately helping to reduce air pollution and providing essential funding for the area’s subway, bus, and regional rail systems, which millions of New Yorkers rely on daily. The implementation of the plan was delayed pending a mandatory federal environmental review that began during Donald Trump’s presidency. Initially slated for launch earlier this year with a proposed toll of $15, the plan was abruptly postponed by Governor Hochul, who deemed it too costly. In response, she announced a revised strategy featuring a lower fee in November, shortly following Trump’s re-election bid.