The Trump administration has taken steps to halt New York City's congestion pricing program, a controversial initiative aimed at generating crucial infrastructure funding. The program, which commenced on January 5, imposed a $9 toll on drivers entering Manhattan south of 60th Street during peak traffic hours and a $2.25 fee for overnight entry into the congestion relief zone below 60th Street.
In a letter to New York Governor Kathy Hochul, US Transportation Secretary Sean Duffy announced the Department of Transportation's decision to revoke the agreement, effectively dismantling the tolling structure. Duffy cited a conflict with the federal highway program, which generally prohibits tolling on roads constructed with federal funds unless Congress grants an exemption.
Despite facing legal challenges, early data suggests that the congestion pricing program may be yielding positive results. In January, there was a notable reduction in car traffic, with approximately 1.2 million fewer vehicles entering the designated zone compared to the same period in 2024, marking a 7.5% decline. Commute times during rush hour were also significantly shortened, with up to a 30% decrease in travel time across bridges and tunnels leading into lower Manhattan.
Moreover, the program appears to have boosted foot traffic in lower Manhattan's business districts, as evidenced by a surge in visitor numbers. Around 36 million individuals visited these areas in January, representing an increase of 1.5 million visitors compared to January 2024. Attendance at Broadway shows saw a notable uptick of 17% year-over-year in January, defying earlier concerns that congestion pricing might negatively impact Broadway attendance.
