NEW YORK (Washington Insider Magazine) – Inching closer to being the first American city to impose an additional tax on drivers accessing its most congested neighborhoods is New York.
According to the Metropolitan Transportation Authority, federal authorities should submit a long-delayed environmental review next month, followed by public hearings. The board members that will decide on the price, exemptions, and discounts for the plan were also named by the MTA.
Congestion pricing is the term used to describe the practice, which has been implemented in places including Stockholm, London, and Singapore. Automobiles entering Manhattan in New York below 60th Street would be subject to an electronic toll. According to ABC NEWS, the anticipated $1 billion in yearly earnings would be used to support borrowing for capital expenditures on the bus and subway systems of the MTA.
While the COVID-19 pandemic-related decline in subway ridership has been gradual and is presently hovering around 60% of pre-pandemic levels, automobile traffic at tunnels and bridges started to come back to normal levels last year.
The earliest that the tolls will go into effect is late next year. Congestion pricing in New York was originally intended to go into effect in 2021 and was authorized as a conceptual plan by the state’s legislature in 2019. The pandemic, however, and a lack of direction from federal authorities over the kind of environmental study necessary caused the project to be put on hold. Last year, that advice was given.
At the end of the month, the MTA will host a number of hearings to gather input. After that, the environmental plan has to receive final clearance from the Federal Highway Administration before the project can move forward.
Since people already pay tolls at tunnels and bridges to reach New York, some New Jersey lawmakers claim the proposal is unfair and that the money raised from congestion pricing won’t be utilized to enhance public transportation in their state. The expectation is that some commuters paying tolls to enter Manhattan from New Jersey will be excluded or receive discounts.
