A New York City Toll That's Working - And Other Surprises
When the city first introduced a $9 toll to charge drivers who enter Manhattan during peak hours, critics called it a cash grab and even sparked threats from President Donald Trump. But a year into its implementation, congestion pricing has largely proved to be a success.
According to data released by the Metropolitan Transportation Authority (MTA), 21 million fewer vehicles have entered the toll zone since tolling began – an 11 percent drop from what was projected without it. Meanwhile, average vehicle speeds improved by 23 percent. That's the difference between a one-hour crawl and a 45-minute commute.
The real gains, however, came at the entry points. At the Holland Tunnel, morning rush hour speeds jumped from 10.8 to 16.2 miles per hour – a 51 percent improvement. And in another area of the city, a separate analysis found that these improvements even spilled over to regional roads, meaning drivers outside the zone saw faster commutes.
Public transit riders benefited too. After years of steady decline, average bus speeds in the zone ticked up 2.3 percent, reversing the trend seen in 2023 and 2024. Subway and bus ridership is also up, carrying more than 400,000 riders every day compared to 2024.
Traffic congestion has long been a source of frustration for commuters, but sitting in it can have serious consequences – including higher stress levels, lost productivity, and worse air quality. By getting people out of cars and onto transit, congestion pricing helps address all three fronts.
The MTA made money from the program as well. Net revenue exceeded projections. The cash is earmarked for transit upgrades, including modern subway signals, 56 new elevators for accessibility, and the Second Avenue Subway extension.
However, there's still one question left unanswered: what about air quality? A recent study found a 22 percent decline in one kind of particulate matter after congestion pricing went into effect, while another analysis found little effect. The MTA's own data show no significant change in pollution levels. If London and Stockholm are any guide, it'll take a few years of data before congestion pricing's effects on air quality become clear.
The program has also shown surprising resilience to opposition. When Stockholm launched its congestion pricing in 2006, two-thirds of residents opposed it. After a six-month pilot, they held a referendum – and more than half voted to keep the program. New York seems to be following a similar arc. Gov. Kathy Hochul now touts the toll as an "unprecedented success." Officials in Los Angeles have already reached out for advice on their own potential pilot project.
The bottom line: if you charge people to drive, fewer people drive. Who knew?
When the city first introduced a $9 toll to charge drivers who enter Manhattan during peak hours, critics called it a cash grab and even sparked threats from President Donald Trump. But a year into its implementation, congestion pricing has largely proved to be a success.
According to data released by the Metropolitan Transportation Authority (MTA), 21 million fewer vehicles have entered the toll zone since tolling began – an 11 percent drop from what was projected without it. Meanwhile, average vehicle speeds improved by 23 percent. That's the difference between a one-hour crawl and a 45-minute commute.
The real gains, however, came at the entry points. At the Holland Tunnel, morning rush hour speeds jumped from 10.8 to 16.2 miles per hour – a 51 percent improvement. And in another area of the city, a separate analysis found that these improvements even spilled over to regional roads, meaning drivers outside the zone saw faster commutes.
Public transit riders benefited too. After years of steady decline, average bus speeds in the zone ticked up 2.3 percent, reversing the trend seen in 2023 and 2024. Subway and bus ridership is also up, carrying more than 400,000 riders every day compared to 2024.
Traffic congestion has long been a source of frustration for commuters, but sitting in it can have serious consequences – including higher stress levels, lost productivity, and worse air quality. By getting people out of cars and onto transit, congestion pricing helps address all three fronts.
The MTA made money from the program as well. Net revenue exceeded projections. The cash is earmarked for transit upgrades, including modern subway signals, 56 new elevators for accessibility, and the Second Avenue Subway extension.
However, there's still one question left unanswered: what about air quality? A recent study found a 22 percent decline in one kind of particulate matter after congestion pricing went into effect, while another analysis found little effect. The MTA's own data show no significant change in pollution levels. If London and Stockholm are any guide, it'll take a few years of data before congestion pricing's effects on air quality become clear.
The program has also shown surprising resilience to opposition. When Stockholm launched its congestion pricing in 2006, two-thirds of residents opposed it. After a six-month pilot, they held a referendum – and more than half voted to keep the program. New York seems to be following a similar arc. Gov. Kathy Hochul now touts the toll as an "unprecedented success." Officials in Los Angeles have already reached out for advice on their own potential pilot project.
The bottom line: if you charge people to drive, fewer people drive. Who knew?