By David Shepardson
WASHINGTON (Reuters) – New York City drivers on Monday will have to pay $9 to enter Manhattan under the first U.S. congestion charge, which aims to raise billions for mass transit and reduce traffic congestion.
The bill went into effect on Sunday after New Jersey failed on Friday to convince a judge to put it on hold pending an appeal.
The city rushed to implement the bill ahead of President-elect Donald Trump’s inauguration on January 20. Trump, who lives in Manhattan, opposed the bill and said he would seek to block it.
New York imposes a $9 toll on passenger cars during the day in Manhattan south of 60th Street. Trucks and buses will pay up to $21.60. The rate is reduced by 75% in the evening.
Charged through electronic license plate readers, private vehicles pay once a day regardless of how many trips they make. Taxis pay 75 cents per trip and ride-share vehicles reserved on apps like Uber (NYSE:) and Lyft (NASDAQ: ) will pay $1.50 per trip.
While New York was the first US city to impose such a toll, London implemented one in 2003, and the fee is now 15 pounds ($19).
Sarah Kaufman, director of the Rudin Center for Transportation at New York University, said Monday that the experience of other cities in the world showed that the fee was initially not very popular.
Then residents “start to appreciate the reduction in traffic and the increased transit services. So at best, that’s what happens here in New York,” he said.
New York’s Metropolitan Transportation Authority says the program will result in 80,000 fewer cars a day, about an 11% reduction, in what it calls the most congested district in the United States.
More than 700,000 cars enter Manhattan’s central business district every day, slowing traffic to about 7 mph (11 kph) on average. That’s 23% slower than in 2010.
The city estimates that the congestion charge will amount to $500 million in its first year. New York Governor Kathy Hochul says the money will back $15 billion in debt financing to invest in subways, buses and other transportation improvements.