A New Plan For Congestion Pricing in New York

Charles Komanoff reveals a revised new plan that aims to bring congestion pricing to New York City and use its revenue to reduce the price of transit.

2 minute read

January 12, 2009, 9:00 AM PST

By Nate Berg


"Cities like London, Stockholm, and Milan have demonstrated the power of road pricing to reduce driving and cut travel times, pollution damages, crash costs, and the like. But even those gains pale beside the profusion of benefits for New York City promised by a new plan I've developed with Ted Kheel."

"The Kheel-Komanoff Plan (so named to distinguish it from the "pure" Kheel Plan approach, with 100 percent-free transit) delivers all this with just four measures:"

1. A new toll on car and truck trips into Manhattan's Central Business District (CBD), ranging from $2 to $10 for cars, depending on time of day and day of week. Trucks -- bigger and more polluting than cars -- will pay double. Revenues, after netting tolling costs: $1,230 million.

2. A surcharge on medallion taxi fares. To ensure that Manhattan residents, who drive across the CBD line relatively little but use taxis regularly, pay their fare share, we hike taxi fares by a third and allocate the proceeds to transit. Revenues: $440 million.

3. Smart transit fares. We eliminate subway fares at night and on weekends, reduce them except during the a.m. and p.m. peaks, and abolish bus fares altogether. Benefits include a 15-20 percent speedup of local bus service from eliminating queuing to pay fares, less rush-hour crowding as some subway trips time-shift out of the peak, and higher overall transit usage. Cost: $1,610 million.

4. A hike in non-Manhattan bridge tolls. While not primarily a traffic-reduction measure, a 20 percent rise in tolls on outlying New York City bridges will raise $170 million and pay for elimination of all fares on intracity express bus and commuter rail service. "

Wednesday, January 7, 2009 in Grist

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

Get top-rated, practical training

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.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

NYC MTA train on elevated rail with Manhattan skyline visible in background.

New York MTA Says No More Borrowing, Will Cut Costs Instead

The agency says it won’t take out any new loans to finance its planned improvements and is finding other ways to cut costs.

45 minutes ago - Bloomberg CityLab

Tree-lined street with large old trees and full parking lane and one-way driving lane in Spain.

Research: More Complex Streets Are Safer

Streets that offer more perceived obstacles and distractions can force drivers to slow down and drive more carefully.

2 hours ago - State Smart Transportation Initiative

People biking along beach path with moored ship in San Diego, California.

San Diego Adopts First Mobility Master Plan

The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

May 2 - SD News

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Senior Manager Operations, Urban Planning

New York City School Construction Authority

Building Inspector

Village of Glen Ellyn

Manager of Model Development

Central Transportation Planning Staff/Boston Region MPO