The initiative, known as the Congestion Relief Zone (CRZ), will impose tolls on vehicles entering Manhattan’s central business district – specifically, local streets and avenues at or below 60th Street.

The scheme, which has been in development for several years, aims to reduce traffic congestion, improve air quality and generate funding for public transportation improvements.

The programme follows final US federal approval granted on 22 November 2024, after a comprehensive review under the National Environmental Policy Act (NEPA) and the Value Pricing Pilot Program.

Toll rates will be dynamic, varying by vehicle type, payment method, and time of day. During peak hours – 5am to 9pm on weekdays, and 9am to 9pm on weekends – passenger vehicles with an E-ZPass will pay US$9, while overnight tolls are reduced to US$2.25.

Motorcycles will pay US$4.50 during peak hours and US$1.05 overnight, while small trucks and buses will be charged US$14.40 during peak periods and US$3.60 overnight. Larger multi-unit trucks and tour buses face peak charges of US$21.60, with overnight tolls set at US$5.40.

Taxis and for-hire vehicles registered with New York City’s Taxi & Limousine Commission will also face per-trip charges for journeys to, from or within the CRZ. High-volume rideshare vehicles will add a US$1.50 charge to fares, while taxis, green cabs and black cars will include a US$0.75 surcharge.

The Metropolitan Transportation Authority (MTA) has established several discount and exemption programmes. These include the Low-Income Discount Plan (LIDP), which offers a 50% reduction on peak period tolls after the first 10 trips in a calendar month for those with an annual income of US$50,000 or less.

Additionally, vehicles registered to individuals with disabilities or used by designated organisations transporting people with disabilities may be exempt from charges through the Individual Disability Exemption Plan (IDEP). Residents living within the CRZ with an adjusted gross income below US$60,000 can also qualify for a tax credit equal to the tolls paid.

Crossing credits will be available to drivers who enter the CRZ via one of four major tunnels: Lincoln, Holland, Queens-Midtown or Hugh L. Carey. The credit will reduce tolls by up to US$3 for passenger vehicles, US$1.50 for motorcycles, US$7.20 for small trucks, and US$12 for larger trucks and tour buses. Credits, however, will not apply during the overnight period when reduced rates are already in effect.

To prepare, the MTA has encouraged drivers to ensure their E-ZPass accounts are up to date. Vehicles must have a current license plate linked to their E-ZPass account to receive discounted rates, applicable credits and exemptions.

Drivers without E-ZPass will receive ‘Tolls by Mail’ bills, which can be up to 50% higher than the E-ZPass rate.

To assist with the transition, the MTA is hosting public webinars throughout December 2024 to explain toll rates, exemption plans and how drivers can prepare.

MTA chair and CEO Janno Lieber said: “This is a historic moment for New York City. Congestion pricing will reduce traffic, improve air quality, and provide critical funding for our public transit system. It’s a win for the city and a win for the people who live, work, and commute here every day.”

The introduction of congestion pricing in New York City is viewed as a landmark moment for urban traffic management in the USA. It will mark the first such scheme in the country, following similar initiatives in cities such as London, Stockholm and Singapore.

Supporters argue it will generate billions for public transport improvements while reducing vehicle emissions and traffic delays. Critics, however, have raised concerns about its impact on lower-income residents and commuters from outside the city.