Federal, state and city transportation regulators signed off on the MTA’s new congestion pricing program for Manhattan Friday, clearing the final roadblocks ahead of an expected Jan. 5 start to tolling.
After pausing the plan, Gov. Hochul has revived the plan with a proposed starting toll of $9-a-day for motorists traveling south of 60th Street in Manhattan.
Winning fast approval from the feds was key as President-elect Donald Trump has said he would kill the controversial plan.
“We are pleased to have received formal approval from the Federal Highway Administration for the phase-in feature of the Central Business District Tolling Program,” Cathy Sheridan, head of MTA Bridges and Tunnels, said in a statement, using the formal name for the congestion pricing program.
All three transportation departments signed off Friday on the so-called “value pricing pilot program” agreement, which authorizes the MTA to use the tolls collected on federally-funded roads — several of which exist inside the congestion zone — to fund something other than road maintenance.
The Federal Highway Administration, a part of the federal DOT, also issued a re-evaluation of the modified congestion pricing plan — which phases in a higher toll over the course of several years — and found that the plan is still within the bounds of the environmental assessment the feds green-lit last year.
The two outstanding sign-offs were the last procedural requirements that needed to be cleared if the MTA is to begin tolling motorists on Jan. 5 as planned.
Earlier this week, the MTA’s board voted 12 to 1 to approve Hochul’s modified congestion pricing plan, effectively reviving the controversial toll deigned to fund system improvements.
“This is a hopeful moment,” MTA chairman Janno Lieber said ahead of Monday’s vote. “It shows that New Yorkers — we collectively — can take on and address big challenges that we’re facing.”
The plan will start with a 40% discount over the plan approved by the MTA’s board in March. That initial plan would have charged motorists a $15 base toll to drive into Midtown or lower Manhattan — the revenue from which was to back $15 billion in bonds for the MTA’s capital.
Hochul’s new plan will start the tolls 40% lower for three years — $9 a day for most motorists — before ramping up to a full $15 toll in 2031. State officials plan to start tolling on Jan. 5, 2025.
Lieber heralded the modified toll as a victory — a policy that would not only fund several of his agency’s big-ticket projects, but also one that would improve air quality and street safety in the city.
This is a developing story. Check back for updates.