What to know about higher Manhattan tolls and congestion pricing

Charging drivers to enter parts of Manhattan might be the answer to many of New York City’s most persistent problems. Or it could be a government cash grab that will hurt drivers — including many from Long Island.

No matter what you think about congestion pricing, there’s a good chance by this time next year you’ll have to pay up to $23 each day you drive below 60th Street in Manhattan or up to $34.50 if you don't have an E-ZPass. And that could be on top of what you already doled out to cross a bridge or tunnel.

Meanwhile, 122 groups, from farmers to Long Islanders with cancer and 9/11-related diseases, have asked to be exempt from the toll.

Following the federal government’s final approval last week, commuters from across the region have been asking questions about the controversial plan to charge new tolls to cars driving in Manhattan.

Here are some answers.

What is congestion pricing?

Congestion pricing is a system of tolling vehicles entering or operating in Manhattan’s Central Business District, which is below 60th Street. There are some exceptions, including for drivers who stay on the FDR Drive and West Side Highway. Higher tolls would be charged during the busiest times of the day, when there is the highest traffic congestion.

After being debated for decades, New York passed a law in 2019 allowing for the creation of a congestion pricing plan. On Monday, the Federal Highway Administration completed its environmental review, allowing the Metropolitan Transportation Authority’s “Central Business District Tolling Program” to move forward.

Based on plans implemented in London and other international cities, it'll be the first plan of its kind in the U.S.

Why is New York doing this?

Project proponents point to several potential benefits from reducing the number of vehicles in Manhattan, including increased productivity for commuters, a reduction in traffic accidents, quicker response times for police, ambulances and fire vehicles, faster bus service, and improved air quality. The MTA is projecting that 20% of cars could be taken off the road, which also fits into the state's goal to address climate change.

The MTA is also looking to raise $1 billion a year, and to encourage use of mass transit.

When will the new tolls take effect?

MTA officials are aiming for May of next year, but that’s not final.

Even with federal approval, there are still some hurdles. The contractor hired by the MTA to create the tolling system has, by law, 310 days from the federal approval to put it in place.

Also, a six-member Traffic Mobility Review Board (TMRB) must meet and hold public hearings and then make recommendations to the MTA about toll parameters, like who'll be exempt. MTA chairman Janno Lieber said that's expected to happen "in the next few months."

MTA Board members then will vote on a final plan. Also unclear is whether litigation, including a lawsuit being considered by the state of New Jersey, could block or slow implementation of the tolls.

How is this going to work?

Vehicles would be tolled much like they are now at MTA crossings: Detectors and cameras would be mounted on poles and mast arms at entrances and exits of the Central Business District, including on the avenues between 60th and 61st streets. Drivers would pay using E-ZPass, or invoices mailed to the car owner's home if they don’t have E-ZPass.

Passenger vehicles would be charged only once each day for entering or remaining in the toll zone. Tolls would be highest during “peak” periods — 6 a.m. to 8 p.m. on weekdays, and 10 a.m. to 10 p.m. on weekends.

How much will it cost?

It depends on which drivers are exempted. The more groups that don't have to pay, the higher the rates for everyone else, as the MTA seeks to raise $1 billion a year in new revenue.

The MTA is considering a range of options that could charge most motorists between $9 and $23 for driving within the toll zone during peak hours. Vehicles without E-ZPass would pay as much as $34.50, as would trucks. Small trucks could pay $12 to $65, large trucks $12 to $82.
The lowest price in the range reflects a toll policy with the fewest exemptions and no caps on the number of times commercial vehicles could be charged in a day. Higher toll amounts reflect more exemptions and caps. Prices would be less during the off-peak hours and even lower — or potentially free — during overnight hours, 10 p.m. to 6 a.m. on weekdays, 10 p.m. to 10 a.m. on weekends.

Will everyone have to pay?

No, but it remains unclear who will have to pay and who won’t. Under state law, only certain qualifying emergency vehicles and vehicles transporting persons with disabilities are guaranteed to be exempt from the tolls.

But the MTA has said it is considering 122 different exemption requests, including buses, taxis and other for-hire vehicles, residents of Staten Island and some upstate counties, first responders, people of color, teachers, senior citizens, artists, musicians, low-income earners, essential workers, police, firefighters, delivery people, Long Islanders with cancer, and even parents. The TMRB will consider each of the requests, but MTA officials have noted that, the more exemptions given, the higher the tolls will have to be on everyone else.

Also being considered is what, if any, credit drivers will receive if they've already paid a toll to enter Manhattan through a bridge or tunnel. The MTA plans to offer tax rebates to Central Business District residents earning under $60,000, and, for the first five years, 25% discounts to New Yorkers earning less than $50,000 or who are enrolled in programs such as food stamps.

Where is the money going?

After covering the expenses of new tolling system, which the MTA paid a contractor $507 million to design, build, operate and maintain, all revenue from the new tolls would be dedicated to the MTA’s Capital Program. The program is renewed every five years, and is used to fund infrastructure investments, including the purchase of new trains, and station upgrades. The current 2020-24 program costs about $55 billion, and includes accessibility upgrades to several stations on the LIRR Babylon line.

The MTA plans to use the $1 billion generated from the tolls annually to finance $15 billion in bonds. Under state law, 80% of the money generated would go to New York City subways and buses, and the remaining 20% would be split evenly between the Long Island Rail Road and Metro-North.

Is it really going to reduce congestion?

Somewhat. The MTA projects that its congestion pricing plan will reduce the number of vehicles entering the Central Business District in Manhattan by 15.4% to 19.9%.

Vehicle miles traveled also would be reduced throughout the region, including by up to 9.2% in Manhattan and up to 0.1% on Long Island, as more people use public transportation to get into and out of Manhattan.

Other major cities throughout the world that have implemented congestion pricing have seen some impact. According to the U.S. Department of Transportation, London saw a 15% reduction in traffic and a 30% reduction in travel delays after implementing its plan two decades ago. Singapore and Stockholm had similar results.

What's the reaction from Long Island been?

It depends who you ask.

At public hearings last summer, Long Island motorists largely spoke out against the tolls. Republican lawmakers also have criticized the plan, including Rep. Anthony D’Esposito (R-Island Park), who called it “a direct assault on our suburban way of life.”

The Permanent Citizens Advisory Committee to the MTA, which includes the LIRR Commuter Council, has heralded congestion pricing's potential to "reap billions of dollars to improve" the transit system, including by rebuilding Penn Station.

Long Island's representative on the TMRB, John Durso, the president of the Long Island Federation of Labor, AFL-CIO, said he understands the opposition to the new tolls, but also believes in the importance of the "quality-of-life issues" that would be addressed by congestion pricing. Durso said he intends to "speak on behalf of working men and women" on Long Island.

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.