How Will Congestion Pricing Impact New York Transit?

The city’s new congestion pricing program, scheduled to take effect next year, could mean billions in new transit funding.

2 minute read

July 10, 2023, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Cars in line at New York City tollbooths

jovannig / Adobe Stock

What will New York City’s congestion pricing program—now in its final planning stages—mean for public transit? As Stephen Nessen explains in Gothamist, the program is required by a 2019 state law to “bring in at least $1 billion a year for the MTA.”

Nessen adds, “The agency must use that money to finance $15 billion in bonds to pay for mass transit improvements included in its 2020-2024 capital plan — which was formed in the aftermath of New York City’s 2017 “summer of hell” when the subways and commuter railroads fell into disrepair.” The money will fund the expansion of the Second Avenue subway, the Penn Access project, and accessibility improvements at subway and Long Island Rail stations, as well as more electric buses. The article points out that congestion pricing revenue cannot legally be used for balancing the agency’s operating deficit, as some critics have claimed.

The next step is coming up with a price structure and exempt groups. Already, “Drivers won’t pay if they remain on the West Side Highway or FDR Drive south of 60th Street. Low-income drivers who live in the congestion zone, emergency vehicles and cars transporting people with disabilities are also exempt.” New Jersey officials say Garden State residents who commute to New York should receive discounted rates, although a 2021 analysis revealed that, of the 1.6 percent of New Jersey commuters who would likely pay the toll, most are more affluent than the average resident.

Wednesday, July 5, 2023 in Gothamist

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