New York City has long faced a transportation problem created by scarcity. Manhattan has limited street space, but hundreds of thousands of vehicles compete to use it each day. Heavy traffic increases travel times, contributes to air pollution, and slows buses and emergency vehicles. At the same time, millions of people depend on a public transportation system that requires substantial funding to maintain and improve.
In January 2025, New York began a congestion pricing program designed to address these challenges. Most vehicles entering Manhattan’s Congestion Relief Zone, which includes local streets and avenues at or below 60th Street, must pay a toll. Passenger vehicles with E-ZPass were generally charged $9 during peak periods and charged only once per day. Different rates and rules apply to trucks, buses, taxis, rideshare vehicles, and some qualifying drivers.
The policy uses price to influence demand for a scarce resource: road space. By increasing the cost of driving into one of the city’s most congested areas, the program was intended to reduce traffic. Drivers could still enter, but some might change when they travel, use public transportation, take another route, or avoid the trip.
The toll also generates revenue for public transportation. Revenue can support Metropolitan Transportation Authority (MTA) projects involving subways, buses, and accessibility. As a result, the policy affects not only drivers who pay the toll but also transit riders, businesses, workers, pedestrians, and residents.
The Results
Evidence collected after implementation shows several changes. During the first months of 2025, approximately 11 to 13 percent fewer vehicles entered the Congestion Relief Zone than estimates of what traffic would have been without the toll. Travel times improved on many routes, although effects varied by location. Traffic decreased at some tunnels while increasing slightly at the George Washington Bridge, north of the tolling zone.
Public transportation use also increased. MTA data reported higher bus ridership and improved bus speeds within the zone. By October 2025, the program had generated approximately $468 million in net revenue for public transportation investments.
Researchers have also examined environmental effects. A Cornell University study found that in the first six months, vehicle entries dropped by 11 percent. At the same time, PM2.5 pollution levels fell by 22 percent in the Congestion Relief Zone. Smaller declines were measured across the five boroughs and surrounding metropolitan area.
Other evidence included fewer vehicle crashes and increased pedestrian and bicycle activity. Manhattan also experienced increases in office activity, foot traffic, and sales-tax receipts during 2025, although these trends do not establish that congestion pricing caused the economic changes.
Different People, Different EffectsThe costs and benefits are not experienced equally. Transit riders may benefit from faster buses and transit investments without paying the toll. Drivers who enter the zone pay an additional cost but may experience less congestion and shorter travel times. Businesses may benefit from easier movement through crowded streets, while some customers, workers, and delivery services face higher transportation costs.
Before implementation, concerns also arose that traffic and pollution could shift to surrounding communities. Early evidence shows wider drops in pollution. However, traffic effects vary by location, so longer-term impacts remain unclear.
Evaluating congestion pricing therefore requires considering more than whether traffic decreased. The policy creates different costs and benefits across the city, requiring decisions about which effects matter most and how they should be weighed.