Trump expresses opposition to congestion pricing, revealing its effectiveness.
Drivers across New York City are seeing faster commutes due to a decrease in traffic, a boost in public transit usage, and increased foot traffic in lower Manhattan's shopping districts. This transformation stems from the recent implementation of congestion pricing, a program designed to alleviate gridlock in the United States' most congested district.
New York City became the first American city to embrace congestion pricing after years of debate, reviews, and delays. The program, which started on Jan 5, 2025, charges drivers $9 per day during peak hours and $2.25 overnight for entering Manhattan below 60th Street. This toll zone, commonly known as the congestion relief zone, also offers discounts for lower-income drivers and exemptions for specific vehicles.
The primary objective of congestion pricing is to ease traffic within Manhattan, encourage public transit use, reduce air pollution, and increase street safety. Advocates argue that taxing drivers, who currently account for 75% of trips to that urban area and 85% of commuter trips to the congested zone, will improve the outdated transit system by providing about $15 billion in investments.
The initial results of this plan are promising. In the first month, approximately 1.2 million fewer vehicles entered the congestion zone, representing a 7.5% drop from the same period in 2024[1]. Drive times across crucial routes were reduced by up to 30%, with 34th Street's travel duration slashed nearly in half[2].
Surprisingly, despite the decline in vehicular traffic, attendance to lower Manhattan business districts and Broadway shows has observed a surge. Over 36 million people visited these areas in January 2025, marking an impressive increase of 1.5 million visitors compared to the previous year, signaling a potential strengthening of the local economy[2].
While public support for congestion pricing isn't unanimous, data from a Morning Consult survey indicates that a vast majority of frequent drivers (66%) are in favor of the initiative. On the flip side, 39% of New Yorkers oppose it. Interestingly, customs officials expect congestion pricing to positively impact the city's economy by facilitating quicker commutes and reducing traffic[3].
Among those against the tolling system is Salil Mehta, owner of three Southeast Asian restaurants in the congestion zone. Mehta contends that congestion pricing is adversely affecting small businesses and discouraging weekday visits[4]. However, Mehta personally experiences the benefit of shorter commutes.
Overseas cities like London (since 2003) and Stockholm (since 2007) have utilized similar congestion pricing models for many years, which have proven successful in managing traffic and boosting transportation infrastructure[2]. In 2019, following years of calls for congestion pricing in New York City, New York State passed a law authorizing the Metropolitan Transportation Authority (MTA) to set up a tolling program.
The initiative was initially scheduled to go into effect in the spring of 2025, with a $15 daily toll for commercial vehicles. Nevertheless, New York Governor Kathy Hochul suspended the plan before the 2024 elections, citing excessive charges. Shortly after the elections, Hochul reinstated congestion pricing at a $9 toll, and it went into effect just weeks before President Trump took office.
Despite President Trump's opposition to congestion pricing, legal experts argue that he lacks the authority to end the program without Congressional approval. Moreover, tearing down the program now that it's underway would be met with significant legal challenges.
The implementation of congestion pricing in New York City has led to a significant increase in foot traffic in lower Manhattan's business districts. This surge in visitors might contribute to the strengthening of the local economy.
With the decrease in vehicular traffic in the congestion zone, businesses like Salil Mehta's Southeast Asian restaurants in the area might still struggle due to the impact of congestion pricing on their customer visits.
