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New York imposes $9 fee on drivers to fight traffic congestion

David Ijaseun by David Ijaseun
January 7, 2025
in Cars/SUVs, News
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New York imposes $9 fee on drivers to fight traffic congestion
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Manhattan drivers now face a $9 congestion fee as New York becomes the first U.S. city to implement such a measure. The initiative, launched on Sunday, aims to alleviate gridlock, improve public transit, and generate $500 million in its first year.

The fee applies to vehicles entering Manhattan south of 60th Street during daytime hours, with trucks paying up to $21.60 and night fees slashed by 75%. Governor Kathy Hochul said, *”This is about transforming our transit system and making the city more accessible and efficient for everyone.”*

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CBN Governor, NADDC DG set for LCCI symposium on vehicle financing as alternative to fuel subsidy

What Went Wrong?

A Traffic Crisis Addressed

Over 700,000 vehicles flood Manhattan’s central business district daily, reducing average traffic speeds to just 7 mph—23% slower than a decade ago. The Metropolitan Transportation Authority (MTA) expects the congestion fee to cut daily traffic by 80,000 cars, an 11% decrease.

Sarah Kaufman, transportation expert at New York University, explained, *”Other cities saw backlash initially, but over time, residents appreciated less traffic and better transit. New York is likely to follow that trend.”*

Funding a Transit Revolution

The $500 million projected annual revenue will help fund a $15 billion investment in subways, buses, and transit upgrades through debt financing. City officials believe the program will significantly improve mobility and reduce environmental impact in one of the world’s busiest urban areas.

Learning from London

New York joins global cities like London, which has imposed congestion fees since 2003. London’s program, now charging £15 ($19), has helped improve traffic flow and transit efficiency.

Despite pushback from some commuters and officials, including former President Donald Trump, advocates see the measure as a pivotal step in addressing Manhattan’s gridlock and bolstering public transportation.

Read more on Post-pandemic boom: Five U.S. airports that witnessed double-digit traffic growth

Tags: HeadlineNew York

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