NYC Congestion Pricing Plan Gains Federal Approval

The program would be the first cordon pricing scheme in the United States.

2 minute read

May 10, 2023, 5:00 AM PDT

By Diana Ionescu @aworkoffiction


Traffic in Manhattan New York

New York City traffic. | ILMRT / Wikimedia Commons

The U.S. Department of Transportation approved environmental reviews for New York City’s congestion pricing plan, clearing one of the city’s biggest obstacles to implementing the program.

As Daniel C. Vock explains in Route Fifty, the program, also known as cordon pricing, could raise up to $1 billion per year, much of which would go toward funding the city’s transit system. “The cordoned-off area would include all of Manhattan south of 60th Street. Tolls are expected to be between $9 and $23 per vehicle, but local officials have not yet decided the rate.”

Supporters of congestion pricing say the plan would boost public transit funding, improving service for transit commuters, and reduce congestion on roads, improving commutes for drivers.

While no other U.S. city uses congestion pricing yet, the practice has shown positive results in London, Stockholm, and other international cities. “Tiffany-Ann Taylor, vice president for transportation at the Regional Plan Association (RPA), said the effects on downtown streets should be quick to see once the tolling plan is put into place, even if it takes a few years for physical improvements to the subway system to take shape.”

Some local politicians are wary of the plan, saying it penalizes New Jersey workers who commute into the city. Taylor counters the claim, saying that “The fact of the matter is the folks who are commuting to New Jersey are mostly coming in through public transit … Folks who live in New Jersey and other parts of the region actually are benefiting directly from the program.”

Monday, May 8, 2023 in Route Fifty

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue tarps covering tents set up by unhoused people along chain link fence on concrete sidewalk.

Study: Anti-Homelessness Laws Don’t Work

Research shows that punitive measures that criminalized unhoused people don’t help reduce homelessness.

July 6, 2025 - Next City

Tunnel for pedestrians, bikes, and buses in Lyon, France lit up with purple lights.

The French Solution to Congested Tunnels: Make Them Car-Free

Bay Area transportation officials keep expanding car capacity. Lyon’s Croix Rousse Tunnel offers a different way.

3 hours ago - Streetsblog San Francisco

Missouri state Rep. Chris Brown speaking in government chamber.

Missouri Governor Reverses Anti-Discrimination Housing Policies

A new state law bars cities from prohibiting source-of-income discrimination against tenants using Section 8 housing vouchers.

3 hours ago - Missouri Independent

Pedestrians crossing a rainbow painted crosswalk in New York City.

USDOT Launches Unfunded 'SAFE ROADS' Program

The program targets “distractions” and “political messages or artwork,” and paves the way for autonomous vehicles.

4 hours ago - Urban Milwaukee