Written by David Shepardson
WASHINGTON (Reuters) – New York City drivers on Monday had to pay $9 to enter Manhattan under the first congestion fee of its kind in the United States, which aims to raise billions for mass transit and reduce traffic congestion.
The charges went into effect Sunday after the state of New Jersey failed on Friday to convince a judge to stay them pending appeal.
The city rushed to implement the fees before the inauguration of President-elect Donald Trump on January 20. Trump, who resides in Manhattan, opposes the tariffs and has said he will seek to block them.
New York imposes a $9 toll on passenger cars during the day in Manhattan south of 60th Street. Trucks and buses will pay up to $21.60. Fees are reduced by 75% at night.
Private cars are charged via electronic license plate readers, and you'll pay once a day no matter how many trips you make. Taxis will pay 75 cents per ride and ride-sharing vehicles booked by apps like Uber (NYSE:) and Lyft (NASDAQ:) You'll pay $1.50 per ride.
While New York is the first US city to impose such a fee, London implemented one in 2003, and the fee is now £15 ($19).
Sarah Kaufman, director of New York University's Rudin Center for Transportation, said Monday that the experience of other world cities shows that the charge is initially very unpopular.
Then, she said, “residents started to appreciate less traffic and more transit services. So, ideally, that's what would happen here in New York.”
The New York Metropolitan Transportation Authority said the program would result in 80,000 fewer cars per day, about 11%, in what it called the most congested area in the United States.
More than 700,000 vehicles enter Manhattan's central business district daily, slowing traffic to about 7 mph (11 km/h) on average. This is 23% slower than in 2010.
The city estimates the congestion fee will bring in $500 million in its first year. New York Governor Kathy Hochul said the money will support $15 billion in debt financing to invest in subways, buses and other mass transit improvements.
