By David Shepardson
(Reuters) -The U.S. Department of Transportation has approved New York’s plan to impose a $9 congestion charge for driving in Manhattan starting Jan. 5, a measure aimed at raising billions for public transit and traffic to push back.
The congestion charge, the first of its kind in the United States, was revived last week by Governor Kathy Hochul after she suspended it indefinitely in June.
New York plans to impose a $9 daytime toll on passenger cars driving south of 60th Street in Manhattan. It scrapped an earlier plan to charge $15, which would have started on June 30 this year.
The Federal Highway Administration said in a letter made public Friday that no additional environmental review was necessary to impose the lower toll and that it was consistent with a review completed in 2023.
London introduced a similar fee in 2003, which now stands at 15 pounds ($19).
The Metropolitan Transportation Authority of New York, which approved the charge this week, said the toll will result in at least 80,000 fewer vehicles entering the zone each day, “reducing crowds in what is today the busiest district in the United States , is illuminated.”
New York is rushing to implement the indictment before President-elect Donald Trump takes office. Trump, who has a residence in Manhattan, said last week that he strongly disagreed with the decision to implement the fee.
Hochul said the toll is critical to making new investments in subways and buses in New York, and will support $15 billion in debt financing for public transportation improvements.
Trucks and buses pay a maximum of $21.60, and there is a 75% discount if you travel overnight. The fee is charged once per day regardless of how many trips are made for car owners, while taxis pay 75 cents per trip in the Manhattan zone and Uber (NYSE:) or Lyft (NASDAQ:) vehicles reserved through the app are charged $1.50 per trip.
New York has said that more than 700,000 vehicles enter Manhattan’s central business district every day, bringing travel speeds to an average of about 7 miles per hour, which is a decline of 23% since 2010.
