Congestion pricing tolls bring in nearly $49 million in program's first month, MTA says

The MTA collected nearly $49 million in congestion pricing tolls in the first month the plan was in effect — keeping the agency on target to meet its goal of bringing in a half-billion dollars in new revenue by the end of the year, officials said Monday.

Amid an uncertain future for congestion pricing after the Trump administration withdrew federal approval, the Metropolitan Transportation Authority on Monday released its first revenue figures for its Central Business District Tolling Program. The first-in-the-nation congestion pricing plan brought in $48.6 million between Jan. 5 — the day the tolls began — and Jan. 31.

After $11.1 million in expenses, the MTA netted about $37.5 million in new toll revenue, deputy chief financial officer Jai Patel said Monday at a Manhattan meeting of the authority's finance committee. Patel noted that the MTA met its congestion pricing revenue target in the program's first month without tolls being charged the first four days of the year, and considering January is typically a lighter-than-usual month for traffic.

"The spring, the summer, some of the fall are higher traffic months," said Patel, adding that MTA officials "believe we are on track for the $500 million in net revenue" that they have projected.

Faster travel times

Launching last month after years of planning, debate and court battles, the MTA's congestion pricing program charges most vehicles $9 for driving on 60th Street and below in Manhattan during peak hours, with the aim of reducing traffic, improving air quality and generating funding for transit infrastructure investments.

MTA officials say the program has resulted in faster travel times into, out of and within Manhattan, while increasing transit ridership. Opponents say the new tolls are overly burdensome on New Yorkers.

Last week, the Trump administration rescinded federal approval for the program, saying the plan did not fit federal guidelines, in part because it did not allow for a toll-free path into the congestion relief zone. The MTA has filed a lawsuit challenging the ruling, and has said it will keep the tolls in place pending a court decision.

Data released Monday by the MTA offered other new insights on how the program performed in its first month. Of the $48.6 million in tolls paid, 68% came from passenger vehicles, while 22% came from taxis and for-hire services, like Uber, which charge per-ride congestion fees to passengers. Nine percent of the toll revenue came from trucks, while buses and motorcycles combined accounted for 1%.

Ninety-five percent of the toll revenue was charged during peak hours — 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends — while just 5% came during overnight hours, when tolls are discounted by 75%, according to the MTA.

MTA Board member Neal Zuckerman, who chairs the finance committee, pointed to the figures as another sign of success for congestion pricing, and criticized the Trump administration for "attacking what is a brilliant and necessary new revenue stream" for the MTA.

"Every New Yorker is a victim of this situation," Zuckerman said.

Opponents: Tackle fare evasion

The new toll revenue is financing $15 billion in infrastructure projects in the MTA's 2020-24 capital program, including the purchase of new Long Island Rail Road trains and accessibility improvements at LIRR stations.

Republican state lawmakers, rallying Monday in Albany against congestion pricing, said the new tolls wouldn't be necessary if the MTA did a better job reining in fare evasion, which costs the agency $700 million annually.

"There’s no reason why a resident from Nassau County, going into New York City just trying to get to work, should have to pay the fare for somebody who decided to jump the turnstile," said State Sen. Jack Martins (R-Mineola), adding that he believes the Trump administration’s withdrawal of approval for congestion pricing should make the program "dead in its tracks."

Responding to the new revenue numbers, Danny Pearlstein, spokesman for the Riders Alliance, a commuter advocacy group, said the figures show that "alongside drivers, millions of transit riders are winning because of congestion relief."

"After a decade of organizing and successful litigation in three states, several million long suffering New York and New Jersey commuters, each of whom represents a working family, can see light at the end of the tunnel," Pearlstein said in a statement. "It's little wonder some people are so keen to snuff it out."

The MTA on Monday also announced plans for another major infrastructure expense — the $305 million purchase of 13 locomotives for Metro-North that will be able to run on both electric and battery power.

The "first-in-the-nation" technology will allow Metro-North to operate trains at Penn Station as part of the MTA's $3 billion Penn Station Access megaproject, scheduled for completion by 2027.

MTA officials made the announcement at their monthly commuter railroad committee meeting, which was the last to be presided over by Metro-North president Catherine Rinaldi. The Huntington native earlier this month announced her retirement after 17 years at the MTA. From February 2022 until October 2023, Rinaldi also served as acting president of the LIRR, running the two largest commuter railroads in the United States.

Metro-North executive vice president and chief operating officer Justin Vonashek will succeed Rinaldi as the railroad's new president on April 1.

"Everybody has been very nice and gracious since I announced my retirement, but the accolades really belong to the Metro-North workforce," Rinaldi said at Monday's meeting. "Everything, everything that I have achieved here is because of them."

By Alfonso A. Castillo

alfonso.castillo@newsday.com@alfonsoreports

Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.