New York's Congestion Pricing Returns: A $9 Gamble for Transit Funding

New York plans to introduce a $9 congestion charge in Manhattan in January, ended a suspension due to inflation. The toll aims to fund subways and buses, part of a $15 billion transit improvement plan. President Trump opposes the fee, fearing economic disadvantages.

New York is set to revive its $9 congestion mitigation charge for driving in Manhattan starting in January, after an indefinite suspension by Governor Kathy Hochul. Initially designed to start on June 30 with a $15 toll, the plan was halted to address inflation concerns and the potential impact on commuters and tourists.

The revised charge is essential for funding subways and bus enhancements, providing $15 billion in debt financing for transit improvements. The new scheme, once implemented, anticipates environmental benefits by reducing gridlock and improving air quality dramatically.

Despite opposition from President Trump and several politicians, the Metropolitan Transportation Authority, with its six million daily users, will approve or reject the charge with hopes of reducing traffic by 17% and promoting mass transit usage. Meanwhile, the U.S. Transportation Department has been notified of New York's updated plan to advance the program.

(With inputs from agencies.)