New York City’s first-in-the-country congestion pricing program for drivers entering Manhattan south of 60th Street took effect Jan. 5. New York’s Metropolitan Transportation Authority says it will still be able to fund billions of dollars’ worth of projects despite toll pricing adjustments and a delay from when it was originally scheduled to be implemented this past summer.

The final version of congestion pricing drops the toll for most passenger cars during peak hours from the planned $15 to $9 for now, but MTA officials say that won’t be a problem for funding projects, as the project funding will be coming from $15 billion in bonds that will be paid down with the collected tolls. 

“The implementation of congestion pricing is historic—helping reduce congestion in our Central Business District allowing for safer streets, while providing much needed resources to New York City’s transportation and transit systems while improving air quality for millions of New Yorkers and visitors,” said Marie Therese Dominguez, New York Dept. of Transportation commissioner, in a statement. 

After Gov. Kathy Hochul (D) ordered an indefinite pause of congestion pricing last June, MTA officials paused some plans, including halting work on the $7.7-billion Second Avenue Subway Phase 2. The project, which is the costliest project being funded in part through the toll program, is planned to extend the line 1.8 miles and add three stations. 

However, after the MTA board approved the revised program in November, the agency says it was resuming work on the subway project. In December, it issued a request for proposals to two shortlisted teams, Connect Plus Partners and Skanska Walsh Traylor SAS-2 JV, for tunneling. 

MTA also began advancing other projects relying on the congestion pricing program following the board approval. It issued a request for qualifications Dec. 30 seeking a design-build contractor for signal modernization work on parts of the A and C subway line in Brooklyn, and issued a second RFQ the same day for another design-build contractor to make accessibility upgrades at three stations in Brooklyn and Queens. Earlier in December, MTA also issued a pair of RFPs to shortlisted teams for reconstruction of the Verrazzano-Narrows Bridge ramps and dehumidification of the suspension bridge’s main cables. 

“We’re ready to get these projects started and we’re ready to deliver them better, faster and cheaper than ever before,” said Jamie Torres-Springer, MTA Construction & Development president, in a statement. 

Overall, 80% of revenue from the program will go toward subway and bus projects. Metro-North Railroad and Long Island Rail Road will each get 10%. Other planned work using the funds includes ADA improvements at 23 subway stations, signal improvements on the BDFM subway line and various repair projects.

The program has faced various legal challenges. However, MTA Chair and CEO Janno Lieber said during a news conference on the day of the congestion pricing launch he feels confident in its legal standing after multiple rulings in favor of the program. 

“I’m not worried,” he said. 

Contractor Costs

For contractors or others working in New York, tolls are dependent on the time of day and type of vehicle. Peak hours, and higher tolls, are from 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends. Officials hope to encourage more truck deliveries to be made at night, according to Lieber. Small, single-unit trucks will be tolled $14.40 during peak hours, or $3.60 overnight. Larger trucks will be tolled $21.60 during peak hours, or $5.40 overnight. 

“There’s a huge discount on the overnight, and it’s especially designed to incentivize trucks—who take up so much space and create so much traffic—to do more of their deliveries overnight,” Lieber said.

Drivers during peak hours can get a a credit reducing their tolls by using an E-ZPass and entering Manhattan via the Lincoln, Holland, Queens-Midtown or Hugh L. Carey tunnels. Contractors’ employees unable to use public transit may also be able to apply for discounts or exemptions. Information about those programs is available on MTA’s website. 

For drivers that need to cross Manhattan, but not stop in the congestion relief zone, there are also toll exclusions when sticking to just the West Side Highway, FDR Drive and Hugh L. Carey Tunnel connections to West Street.

While the initial toll amounts are lower than previously planned, they are scheduled to increase in phases through 2031.