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Effectively Implementing Congestion Pricing, Part III: Beyond Day One

Effectively Implementing Congestion Pricing, Part III: Beyond Day One

In this three-part blog post series, we share our reflections on congestion pricing as New York makes history as the first American city to enact an area-based congestion toll on vehicles. In our final post, we discuss how congestion pricing fits within a broader toolkit of strategies to manage private vehicle usage and how we can futureproof the intended system. 

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As of January 5, most drivers entering Manhattan south of 60th Street are charged a new $9 toll, marking the launch of a long-awaited congestion pricing program that has been fraught with political and legal challenges. The path to implementation has been complex. After Governor Hochul's strategic pause and subsequent revival of the program, a modified pricing structure emerged that will gradually increase the base toll from $9 to $15 by 2031. The balance between implementing bold urban policies and addressing economic realities shows how transformative changes require thoughtful policy implementation to maintain public trust. The success of congestion pricing hinges on more than just implementing tolls. It requires a comprehensive strategy: robust supporting policies to enhance public transit, clear communication about the program's benefits, and the overall reduction of private vehicle use within the city. 

We must recognize that congestion pricing is more than just a new fee — it's a cornerstone of a broader transformation in how New Yorkers move through their city. Its success will depend on how effectively it works with other bold transportation initiatives to create a more accessible, equitable, and sustainable city. The true measure will be how well it integrates with other mobility strategies, adapts to the city's evolving needs, and delivers tangible improvements to the daily lives of New Yorkers. Central to this vision is how New York City broadly manages transportation demand and invests in sustainable alternatives to private vehicles and truck-based freight.

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Congestion pricing as the cornerstone of New York City's Transportation Demand Management strategy

Transportation demand management strategies target private vehicle use through two main approaches: managing vehicle usage and discouraging vehicle ownership. Usage-based policies like congestion pricing, dynamic parking fees, and access restrictions (such as NYC Open Streets or pedestrian-priority districts) help optimize how and when people drive. Meanwhile, ownership-based policies—including higher registration fees, improved alternative transportation options, and eliminated minimum parking requirements—influence long-term decisions about car ownership.

These complementary approaches create powerful synergies: usage-based measures deliver immediate relief from congestion and emissions, while ownership-based policies drive lasting changes in mobility patterns. In New York City, congestion pricing stands out for its unique 'triple benefit' of improving air quality, reducing traffic congestion, and raising infrastructure revenue simultaneously. Yet its full potential can only be realized when integrated within a broader transportation demand management framework.

The city has already taken important steps, from eliminating certain parking mandates through the City of Yes Plan to launching DOT's School Streets Program. However, this moment calls for even greater ambition. Building on some of the transformative transportation ideas we have listed in our previous article for making New York City affordable and accessible New York should complement these foundations with bold, complementary policies that amplify congestion pricing's benefits, including implementing market-rate on-street parking across all boroughs, creating an income-based program to help New Yorkers purchase e-bikes and bicycles, and providing transit passes to all city employees while cracking down on parking placards. 

Additional measures could include graduated fees and fines based on car size and/or income levels, expanding the amount of dedicated transit infrastructure on our roads, implementing more car-free zones, increasing water- and rail-based freight, and incentivizing warehousing operators to adopt e-cargo bikes for last-mile delivery. These measures would work in concert with congestion pricing, accelerating our transition towards a more sustainable and equitable transportation system. 

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Congestion pricing needs to remain adaptable to changing travel patterns and fluctuating travel demand

As New York City's mobility landscape evolves, the congestion pricing program must be flexible enough to respond to shifting travel patterns and emerging transportation needs. The rise of remote work and the growth of e-commerce deliveries have reshaped how people move through the city. A successful congestion pricing program should incorporate regular evaluations of traffic patterns, environmental impacts, and economic effects to inform potential adjustments to toll rates, hours of operation, and exemption policies. This could mean implementing seasonal pricing variations, adjusting rates based on real-time congestion levels, or modifying the program's structure to address new mobility challenges. As more people return to office work post-COVID, one possible option is expanding from a cordon-based approach to include corridor or variable pricing, helping manage peak-period traffic demand along key corridors such as the Brooklyn-Queens Expressway and Cross Bronx Expressway more effectively. Most of these changes would require state legislation.

Looking to examples from London and Singapore, where congestion pricing systems have evolved to maintain their effectiveness, New York's program should establish clear mechanisms for data-driven adjustments while maintaining transparency and predictability for users. This adaptive approach will help ensure the program remains an effective tool for managing congestion and achieving its environmental goals even as the city's transportation needs continue to change.

London demonstrates how congestion pricing can evolve strategically over time. What began as a basic daily charge for entering the central zone has grown into a sophisticated system that includes progressively higher fees for high-emission vehicles through Low Emission Zones (LEZ) and Ultra Low Emission Zones (ULEZ). This approach penalizes polluting vehicles and incentivizes cleaner transportation options, while gradual increases to the base congestion charge maintain its effectiveness in reducing traffic.

Singapore offers another model of evolution through technology. Their Electronic Road Pricing (ERP) system has transformed from a static area-based charging system into a dynamic, real-time pricing mechanism. The system adjusts tolls based on location, time of day, and current traffic conditions, creating more efficient traffic management that responds to changing congestion patterns. Singapore continues to innovate, exploring advanced technologies like distance-based charging and satellite-based GPS monitoring to further optimize its system.

New York City can learn from these international examples while charting its own course forward. We must build in the flexibility to evolve beyond a simple cordon-based system. This means not only establishing robust data collection and evaluation processes but also maintaining an openness to new technologies and pricing approaches that could enhance the program's effectiveness

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Over the past few months, our team has been at the forefront of the congestion pricing conversation in New York City. In our first two articles dissecting what led up to the initial pause and considering what a compelling transportation vision that includes congestion pricing might look like, we have helped shape a deeper understanding of this transformative policy's role in New York's future. During Climate Week NYC 2024, we convened a distinguished panel of city leaders and transportation experts to examine the initial setbacks and the path forward. We’ve been proud to stand with other advocates in building momentum toward implementation. 

As New York City implements congestion pricing, we face a historic opportunity to reshape its transportation system. While January 5th marked the beginning of this journey, it represents just the first step in a longer transformation of mobility in the city. Through careful integration with other transportation demand management strategies, maintaining flexibility to adapt to changing needs, and learning from global best practices, congestion pricing can serve as a powerful catalyst for a more sustainable, accessible, affordable, and livable city. 

The true measure of success will not just be in the immediate reduction of traffic or improvement in air quality, but in how this policy helps forge a new vision for urban mobility—one that prioritizes people over vehicles, sustainability over convenience, and equitable access over individual privileges. As we move forward, we must remain committed to this vision while being nimble enough to adapt our approach based on data, experience, and evolving needs. The future of New York's transportation system begins now. 

Click to read Part I and Part II in our congestion pricing series.

Flynn, Michael
Mike Flynn, AICP
City Solutions Sector Manager, New York

Mike Flynn, AICP is City Solutions Sector Manager, New York. A national expert on urban mobility, he supports a range of innovative planning, policy, design, and strategy projects to help cities and towns achieve economic, environmental, and equity goals through an effective transportation system and human-centered public realm.

Wah, Melvin
Melvin Wah
Associate, New York Sustainability Lead

Melvin Wah is an Associate and New York Sustainability Lead with deep experience in micromobility, transit and vehicular electrification planning and policy. Throughout his practice, Mr. Wah has worked on various projects to address industry disruptors at the nexus of sustainability and transport