(Bloomberg) -- New York City transit officials are set to vote Monday on a revised toll program that would charge most motorists $9 to drive into large sections of Manhattan starting in January, with the fee set to increase to $15 by 2031.
The $9 toll would bring in revenue that the Metropolitan Transportation Authority, which runs the city’s transit network, would borrow against to modernize a more than 100-year-old system beset by delays and needed upgrades. New York Governor Kathy Hochul on Thursday restarted the tolling plan — after abruptly pausing it in June — and slashed the original pricing structure by 40%.
Hochul now wants to push through congestion pricing before President-elect Donald Trump, who opposes the new fee, takes office. Even with its reduced pricing structure, the initiative — the first of its kind in the US — will still provide the $15 billion originally planned to upgrade MTA’s infrastructure, Hochul said.
Officials are seeking to begin charging drivers on Jan. 5, with E-ZPass motorists paying $9 during peak hours for the first three years of the program.
Starting in 2028 the $9 toll would increase to about $12, while in 2031 it would jump to $15, according to MTA documents. The MTA is set to vote on the new tolling structure at its monthly board meeting on Monday.
The toll will apply to vehicles entering south of 60th Street in Manhattan. Beyond revenue, the goal is to reduce traffic, improve air quality and to encourage people to use public transportation.
Hochul will need the federal government to approve the revised tolling structure and also sign a value pricing pilot program with New York and the city.
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