What happened: New York Governor Kathy Hochul (D) June 27 announced that New York City’s congestion pricing plan will move forward following an environmental review conducted by the Federal Highway Administration (FHWA). In a YouTube video announcing the move Hochul said, “I am proud of the thorough Environmental Assessment process we conducted, including responding to thousands of comments from community members from across the region. With the green light from the federal government, we look forward to moving ahead with the implementation of this program.”
Why it matters: New York City will likely be the first in the nation to implement a fee on vehicles entering busy roads. The fee is expected to bring in about $1 billion in annual revenue for public transit. Additionally, the environmental assessment includes $155 million toward clean-air projects, expanding parks, and asthma care.
What’s next: The Traffic Mobility Review Board will recommend a tolling structure. The board of the Triborough Bridge and Tunnel Authority will then review and adopt the plan. Once completed, contractors will be given 310 days to implement tolling systems and equipment. Toll collection could start by May 2024.
NYC Drivers Face $23-a-Ride Congestion Fee as Soon as April 2024 (bloomberglaw.com)
Written by Casey Wible, Economics Intern- ARTBA