New York becomes first U.S. city with congestion pricing

New York City's congestion pricing went into effect in the center of Manhattan on Sunday, one day after a federal judge rejected a request from New Jersey officials to halt the program.

Why it matters: The Metropolitan Transportation Authority says the first road toll policy of its kind in the U.S. is aimed at reducing traffic jams, boosting public transit use and improving air quality by charging up to $9 per day in the Congestion Relief Zone.

The policy has been strongly opposed by leading figures including N.Y.-born President-elect Trump, who wants to stop it, and New Jersey Gov. Phil Murphy (D), whose office vowed on Saturday to continue fighting the toll.
How it works: Per the MTA, the zone that came into effect at midnight Sunday includes roads in Manhattan south of and including 60 Street in an area.

Excluded is the FDR Drive, West Side Highway/Route 9A, and the Hugh L. Carey Tunnel connections to West Street.
Most drivers are charged via an E-ZPass toll collection system, with passenger and small commercial vehicles paying $9 during the peak periods of 5am-9pm on weekdays, and from 9am-9pm on weekends. The rate is $2.25 during the overnight period.
Motorcyclists pay a one-off daily rate of $4.50 during the peak period and $1.05 during the overnight period.
There's a credit of up to $3 for passenger vehicles and $1.50 for motorcycles for those who've paid to enter Manhattan via certain tunnels, except for overnight because the MTA says "the toll is reduced by 75% from the peak period toll" then.

State of play: MTA Chair and CEO Janno Lieber said at a Sunday briefing 12 hours into the program that so far things had "gone smoothly," but it's too early get an accurate measure of the program's success.

"This is a toll system that has never been tried before in terms of complexity," Liber said. "Everybody's going to have to adjust to this," he added.
"We will start to know specific numbers and have some comparatives within a few days, and we're going to share that information publicly."
Stunning stat: New York City had the most congested traffic in the world in 2023, with drivers losing 101 hours to traffic jams during peak commuting times, per INRIX, a transportation analytics company.
Flashback: New York Gov. Kathy Hochul (D) paused implementing the policy last June, citing concerns about plans to charge drivers $15.

What they're saying: Murphy has cited "economic strains" and inflation concerns for opposing NYC's policy.

The president-elect, whose Trump Tower building is in the congestion zone, in a November statement said: "Not only is this a massive tax to people coming in, it is extremely inconvenient from both driving and personal booking keeping standards.
He added: "It will be virtually impossible for New York City to come back as long as the congestion tax is in effect."
Lieber said he thinks Trump "understands, being on Fifth Avenue — living on Fifth Avenue, 59th Street — what traffic is doing to our city."
The MTA chief is "hopeful that although there has been some rhetoric about this, that we will continue to work with the federal government and get through the change of administration."