NYC’s New Toll
The Biden administration is set to allow New York lawmakers to charge “congestion pricing” for all vehicles entering Lower Manhattan in NYC. This new toll could go into effect as early as next spring and would charge drivers anywhere from $9 to $23 to drive through the area.
The congestion toll is intended to discourage travelers from driving through Lower Manhattan and encourage them to walk, call a rideshare, or take public transportation instead. If successful, estimates see the plan reducing traffic congestion by at least 10% daily.
Nobody likes to sit in gridlock. And it doesn’t just cost time and patience — it costs money. Estimates have New Yorkers spending an average of 117 hours, or almost five days per year in traffic, leading to a cost in lost productivity reaching as high as $2,000.
But congestion is much more than an inconvenience for drivers. It can lead to major issues like car accidents, higher carbon emissions, and limited space for pedestrians or outdoor diners.
Notably, the money raised from this toll will go directly toward helping to modernize New York City’s 100-year-old public transit system. The city is planning for congestion pricing to become a new source of revenue that could raise as much as $15 billion to help rebuild the city’s buses and subway system.
Setting the Standard
Similar tolls have been introduced in London, Stockholm, and Singapore. In general, these cities have reported positive results such as decreased carbon dioxide pollution, higher average car speeds, and congestion reduction.
However, despite the benefits, this proposed tax is sure to receive backlash from taxi, ride-share, and delivery drivers. Those workers will have to shoulder a particularly large share of the cost.
As the biggest city in the US, the NYC congestion toll will certainly set the standard for other cities. If the measure successfully reduces traffic, you may see a similar tax proposed at a future town hall meeting near you.
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