The Metropolitan Transportation Authority’s congestion pricing program is on track to exceed first-year revenue projections, transit officials announced Monday, as traffic in Manhattan’s busiest corridors has dropped more than anticipated since the tolling system launched in January.
The $9 base toll for vehicles entering Manhattan south of 61st Street has generated approximately $550 million in revenue through November, putting the program ahead of schedule to meet its annual funding targets. The MTA had projected modest shortfalls in the early months as drivers adjusted to the new system.
“The numbers tell a clear story,” said MTA Chair and CEO Janno Lieber. “Congestion pricing is working exactly as intended. We’re seeing fewer cars, faster buses, and the revenue we need to modernize the transit system.”
Traffic in the congestion relief zone has dropped 11% compared to the same period last year, according to MTA data. The reduction has been most pronounced during peak hours, when the full $9 toll applies between 5 a.m. and 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends. Overnight drivers pay 75% less.
The program has had measurable effects beyond traffic reduction. A Cornell University study published in Nature found a 22% decrease in PM2.5 air pollution concentrations within the zone during the first six months of implementation.
Subway ridership has also increased since congestion pricing began. The seven-day rolling average of daily riders has climbed 5.3% compared to the same period last year, with the system regularly exceeding 4.6 million daily trips in recent weeks.
Transit advocates who pushed for congestion pricing for more than a decade say the data validates their arguments. “This is what we said would happen,” said Danny Pearlstein, policy director at the Riders Alliance. “When you charge the true cost of driving into the most transit-rich area in North America, people make smarter choices.”
But the program continues to face legal challenges that could threaten its future. The Trump administration has signaled its opposition, with Transportation Secretary Sean Duffy threatening to withhold federal transit funding if New York does not eliminate the tolls.
The MTA and New York State have sued to protect the program. A federal judge has scheduled oral arguments for January 28, just weeks after the toll system’s first anniversary on January 5.
Governor Kathy Hochul, who initially paused the program in June 2024 before allowing it to proceed in January 2025, has defended it as essential to funding the MTA’s capital plan. “We cannot maintain and improve our transit system without congestion pricing,” she said at a recent press conference. “The alternative is service cuts and fare hikes.”
The MTA is phasing in toll increases over a six-year period. The peak toll for passenger vehicles will rise to $12 in 2028 and $15 in 2031. Credits of up to $3 are available for drivers using E-ZPass who enter through tunnels that already charge tolls.
Some business groups in Manhattan have opposed the tolls, arguing they add costs for workers and deliveries. But studies suggest the impact on retail and restaurants has been minimal, with foot traffic in the zone holding steady.
For commuters who have switched from driving to transit, the early results suggest congestion pricing is achieving its primary goal: making the subway more attractive than sitting in traffic.
The MTA plans to use congestion pricing revenue to fund accessibility improvements, signal upgrades, and new subway cars over the next decade. Without the program, officials have warned, many of those projects would be delayed indefinitely.
As the program approaches its first anniversary, the legal battle in federal court will determine whether New York’s experiment in congestion pricing continues or becomes a cautionary tale of federal overreach into state transportation policy.
