New York City’s $9 Congestion Pricing Plan Approved, Faces Legal and Political Hurdles

The Biden administration has cleared NYC’s revised tolling plan to fund transit upgrades, but lawsuits and opposition from President-elect Trump threaten its future.

• The Federal Highway Administration has approved New York City's congestion pricing plan, set to launch on January 5, 2025, with an initial $9 toll for entering Manhattan's central business district.
• The program aims to generate $1 billion annually for Metropolitan Transportation Authority (MTA) transit improvements, with tolls eventually rising to $15 by 2031.
• The plan includes a 50% discount for low-income drivers earning under $50,000 annually after their 10th toll each month, but excludes exemptions for municipal workers and other groups seeking relief.
• Opponents, including New Jersey officials and business leaders, argue the toll disproportionately burdens commuters and could harm businesses, with some companies considering relocation to New Jersey.
• President-elect Donald Trump and multiple lawsuits, particularly from New Jersey, pose significant threats to the plan, with legal challenges focusing on environmental and economic impacts.

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