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The Battle Over NYC Congestion Pricing

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The Battle Over NYC Congestion Pricing

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0:00This is 59th street in Manhattan. Below it,  spread across downtown and midtown Manhattan,  
0:06reside some 684,000 New Yorkers. That’s more than  the population of Vermont living in just under  
0:13nine square miles or 23 square kilometers of land.  Or, that’s a population density of about 76,000  
0:21people per square mile, making lower Manhattan  singularly dense by American standards. If this  
0:26were a city by itself, it’d be the country’s most  densely populated, far out cramping current #1,  
0:32Guttenberg, New Jersey, just across the river  where a fifth of its 12,000 residents are stuffed  
0:37into a single building complex. If it were its own  county, its population density would almost double  
0:42the nation’s second most dense: Kings County,  New York. And for similarly dense cities to  
0:47lower Manhattan, you’d need to go abroad, where it  would rank around Kolkata, Kathmandu, and Makati,  
0:52comfortably within the world’s top ten.  But 76,000 per square mile only begins to tell  
0:58the story of just how cramped this area really  is. New York City also has the most office space  
1:04by square footage of any city in North America,  and just Manhattan by itself contains some 81% of  
1:10that. For comparison, Los Angeles, the city with  the second most such space at 432 million square  
1:16feet, is dwarfed by Manhattan’s 592 million.  With so much space comes a flood of commuters  
1:23every morning, adding another 1.2 million or  so people to the southern end of the island.   
1:29For the work day then, an area of just nine  square miles has a momentary population of  
1:33about two million. Two million that need to get  to work, two million that need to run errands,  
1:39and two million that need to get back home  at the end of the day, which, for a majority,  
1:43means getting back out of Manhattan.  But while this sub-city urban core that’s  
1:48more populous than a handful of American states  is uniquely large, uniquely mobile, and uniquely  
1:53stuffed; for the past century—effectively, the  age of the automobile—there’s really been no  
1:58unique solution or system for managing or limiting  traffic. Aside from a prohibition on right turns  
2:04on red and honking, driving in America's densest  nine square miles works the same way as in the  
2:10other 3.8 million square miles. Because of this,  each and every work day, some 140,000 commuters  
2:17enter Manhattan by car, while about 1,000,000  people enter the commercial business district  
2:21south of 60th street by automobile—largely for  only the price of the gas it takes to get there,  
2:26the toll to cross the bridge, and the cost of  parking. All expenses that a rural American  
2:31would scoff at, but expenses that hardly reflect  the shared cost that cars create in the US’s most  
2:37densely populated environment—from air quality and  pedestrian danger, to simple quality of life.     
2:43The result is this: New York’s #1 standing  in Inrix’s 2023 congestion impact ranking,  
2:50where the average driver moved at just 10 miles  or 16 kilometers per hour and gave up about 101  
2:56of their hours a year to sit in traffic  related delays. And those are stats for  
3:01the whole of New York City. Manhattan was far  far worse. While most streets and avenues are  
3:08limited at 25 miles per hour, average traffic  moves at a glacial 7 miles or 11 kilometers  
3:15per hour. This is not a new problem, either.  Rather it’s one that’s just getting worse—in  
3:202010 the average taxi navigated the Central  Business District, or Manhattan below 60th St.,  
3:26at 9.1 miles per hour, and every year following  through 2018, it’s slowed. While COVID lightened  
3:32the congestion for 2020 and 2021, experts are  now saying that traffic hasn’t only returned,  
3:38it's gotten even slower than before 2019. Now,  the exact complexion of the problem has shifted  
3:44over the years. The number of daily vehicles  entering the Core Business District, for instance,  
3:48has dropped, but their impact has been replaced  by an ever higher share of for-hire vehicles  
3:53serving ride-hailing apps and clogging the city  streets. But the very root of the problem is so  
3:59remarkably simple. There are just too many cars.   Now, oftentimes in an urban context, a problem may  
4:07present as simple and straightforward enough, but  a solution could be anything but. That, though,  
4:13is not necessarily the case here. In fact, as  long as car congestion has been an issue here,  
4:18one potential answer’s remained equally  obvious, equally straightforward, equally  
4:23simple—disincentivize driving into Manhattan.  Going as far back as the 1930s, mayors have  
4:30proposed tolls to cross into Manhattan over the  East and Harlem Rivers to raise city funds or,  
4:35in the ‘50s, to raise money for the subway.  In the ‘60s and ‘70s, such ideas were again  
4:40returned to in an attempt first to popularize  mass transit use, then to make progress toward  
4:44meeting the standards of the 1970 Clean Air Act.  Further hoping to pressure individual car users,  
4:50Mayor John Lindsay thought to reduce  city parking in the business core,  
4:53while Mayor Ed Koch in 1979 looked into banning  private cars entirely. For half a century,  
5:00New York city leadership has understood that  in order to clean its air, raise money, and/or  
5:04support its mass transit system, it’s needed to  make it harder or more expensive to drive from New  
5:10Jersey, or Queens, or Brooklyn, into Manhattan  south of 60th. And yet, it’s never happened.   
5:17But it has come close. It started with a  speech outside the Museum of Natural History,  
5:22where then Mayor Michael Bloomberg introduced  the idea by name–congestion pricing. It was  
5:28just one of many components to his larger PlaNYC  initiative introduced on that Earth Day in 2007,  
5:34but one of its boldest. From below this line, any  car entering Manhattan from 6 am to 6 pm Monday  
5:41through Friday would pay $8 while trucks would pay  $21 per daily entry into the zone. Taxis would be  
5:48exempt of the fee, as would emergency vehicles  and those with handicapped license plates, and  
5:52any vehicles skirting around the perimeter aiming  not to enter Manhattan, but to get around it,  
5:56so someone driving from Brooklyn to the Bronx  by way of FDR Drive wouldn’t have to pay the  
6:00fee.  The tolls would be collected by E-Z Pass  readers so as not to slow down vehicles, and the  
6:05toll money itself, 100% of all net revenue,  would be invested back into city transit.  
6:12The project was bold, but between transit  experts, bureaucrats, and elected officials,  
6:17it was popular. State governor Eliot Spitzer,  representative Joseph Crowley, and even  
6:22presidential candidate Barack Obama supported the  plan, while the US Department of Transportation  
6:27supported the initiative by awarding the city  $354 million dollars in grants should it commit  
6:32to embracing new tech and infrastructure to  combat urban congestion. The MTA also strongly  
6:37supported the program, as it accelerated its own  capital planning process to align itself with the  
6:42congestion legislation. On a hurried timeline, it  introduced its largest ever spending program of  
6:47$29.5 billion for the next five years—hoping to  cover subway fleet expansion, the rehabilitation  
6:54of 44 subway stations, the purchase of some 2,500  new buses, the replacement of 57 miles of mainline  
7:00track, and the catch up on general maintenance  across the transit authority’s property. 
7:04And beyond bold and broadly popular  with most politicians and bureaucrats,  
7:08congestion pricing was proven—in recent years,  Stockholm and London had experimented with  
7:14congestion pricing in their downtown cores and  were so far experiencing major benefits. Mass  
7:20transit systems benefited from the influx of  investment, city residents benefited from the  
7:24increase in air quality and calmer streets, and  even those that chose to begrudgingly pay the fees  
7:29benefited from the smoother traffic conditions.  But just like in London and Sweden prior to  
7:33adopting congestion pricing, the idea wasn’t  popular among all residents. At one point,  
7:39polling of New York city showed that 61% of all  respondents opposed the move, with numbers from  
7:44the other boroughs even higher, as 70% of  Bronx-area respondents opposed the idea.  
7:50Opposition was especially vocal in areas  like eastern Queens and Southern Brooklyn,  
7:55where access to public transit was more difficult,  and thus representatives argued such fees would  
7:59unfairly burden their constituents. Then across  all of New York, there was a shared sentiment that  
8:05New Jersey commuters were getting away without  paying their share, as fees for Jersey commuters  
8:09wouldn’t be meaningfully increased because the  tolls they already paid to cross into Manhattan  
8:13would cover their congestion fee. And then  there was one claim across the city that’s come  
8:18to follow congestion pricing—that it’s elitist.  Congestion pricing, some correctly claimed, would  
8:24impact the working and middle class car commuters  more than their upper class counterparts.  
8:29An $8 fee for the pleasure of commuting would  be a much larger proportional chunk of someone’s  
8:34workday expenses if they work making $15 an  hour instead of $150 an hour. Following such  
8:40logic then, congestion pricing could be painted  as a means to rid the roads of working class  
8:45commuters—forcing only them to figure out new  commute routes—while the city’s elite were able  
8:50to now drive into town with increased ease for  a price that they could more comfortably cover.  
8:56Congestion pricing passed in the City Council,  but once it made its way to the state assembly,  
9:00democratic lawmakers representing the  city outside Manhattan blocked a vote,  
9:04missing the federal funding’s deadline, and  killing congestion pricing on the spot.  
9:09Ultimately, New Yorkers had proved that they  understood this was a feasible solution and  
9:14that congestion was a real problem worth  addressing, but the solution got hung up  
9:17on issues as to whose cars, exactly, were to  be limited, and who, exactly, would benefit  
9:22the most from such a program. But what’s easy to  miss, what was missed by the opposition in 2008,  
9:28and not made clear enough by proponents  in 2008, was exactly how elegant and  
9:33ingenious a solution congestion pricing really is. You see, when driving, everyone values their time  
9:41differently depending on… well, a lot of things:  where they’re going, whether they’re on time,  
9:46why they’re driving, etc, and then these varying  personal values translate to different monetary  
9:51values based on differing income levels. An person  of average income driving into the city just for a  
9:57visit on their day off might value their time  in traffic quite low—say $10 per hour—meaning  
10:02they’d theoretically be willing to pay $10 to  eliminate that hour of traffic, but any cost  
10:07above that and they’d rather just wait it out.  But in the car right behind them, there might be  
10:12a person of the same income level who’s late  to their first meeting of the morning. They  
10:16might value their time quite highly—maybe $100 an  hour—as the consequences of the delay from traffic  
10:21are far higher. They’d pay an enormous amount to  eliminate traffic in that scenario. Theoretically  
10:28it’d be fair and good for both these drivers  if the high value-of-time person paid the low  
10:33value-of-time person to cut in front of them, and  do the same with plenty of others in order to get  
10:37to their destination faster. In some places this  effectively happens through tolled express lanes,  
10:43but that’s not practically feasible in lower  Manhattan. What is is congestion pricing. In it,  
10:49the person valuing their time higher is paying,  say, $15, to drive on the roads, and that $15 is  
10:55effectively going to the low value-of-time person  who’s been priced out of driving. That’s because  
11:00that person would get pushed onto public transit,  and so if congestion charge fees go to public  
11:05transit, as is typical, it’s funding improvements  that make transit better, faster, or cheaper.  
11:11But this is, of course, an overly simplified  reality, and it only considers the benefits  
11:15to individual car users. In practice, there are  plenty of upsides to freeing up the roads even  
11:20for non-drivers due to all the other scenarios  where time is exceptionally valuable for a  
11:26particular vehicle type. For example, with the  bus. With ten, twenty, thirty or more people,  
11:32even if their individual value of time is low, the  collection of all of them means one bus can have  
11:37a value of time well into the hundreds per hour.  Delivery vehicles are a similar scenario—in fact,  
11:44research by the Federal Highway Administration  suggests that shippers value transit time between  
11:48$25 and $200 per hour. Everyone who buys  anything in Manhattan effectively pays for  
11:54any disefficiency in goods delivery, so it’s  a scenarios where the costs of traffic get  
11:59passed on to everyone. And perhaps the greatest  example is that of ambulances. A report by New  
12:04York State Senator Brad Holman-Sigal and former  NYC Traffic Commissioner Sam Schwartz pointed out  
12:09that between 2014 and 2024, New York EMS response  times for life-threatening emergencies increased  
12:15by 24% from 6.09 to 7.54 minutes. Not all of that  increase can be directly attributed to traffic,  
12:24but a lot can—half, in fact, according to their  analysis. Minutes matter during life-threatening  
12:30emergencies. As the report points out, in cardiac  arrest, a person’s chances of survival decreases  
12:35an average of 7-10% for every additional minute  before medical intervention. With a stroke,  
12:42each additional minute is linked to the loss  of an additional 1.9 million brain cells,  
12:47meaning New York City traffic quite directly  leads to increased disability for stroke victims.  
12:53Right now, the cost of driving in Manhattan is  so low that there are plenty of people doing  
12:57so even when it’s barely worth it to them. But  with buses and delivery vehicles and ambulances  
13:03using the same roadways and having their extremely  high benefit to society diluted by the congestion  
13:08caused, in part, by the low value-of-time  drivers who have little disincentive to driving,  
13:13the net benefit to society of Manhattan’s  roads is lower than it could be. That’s to say,  
13:19everyone that could take a fast cross-town bus,  everyone who buys goods brought in by delivery  
13:24vehicles, everyone who might need an ambulance  would benefit from congestion-free roads,  
13:29but they can’t capture that benefit now  because there are all these drivers out  
13:32there that only barely want to be driving.  But the logic goes further. You see,  
13:38traffic is not a linear phenomenon. That’s to  say, every additional vehicle does not have the  
13:44same effect on how much it slows down traffic. The  impact of an additional vehicle varies depending  
13:50on how congested the road already is. On a highway  with a 70 mile per hour speed limit, it’s expected  
13:56that the roadway can have a throughput of up  to 1,120 cars per hour, per lane while still  
14:02maintaining 70 mile per hour average speeds. As  the number of cars using the highway increases,  
14:08their density increases, and therefore average  speeds decrease—at 32 cars per mile per lane,  
14:14for example, speeds slow down to just 64 miles per  hour, but even with the slower speeds, the higher  
14:20density means the roadway’s throughput still  increases to 2,048 cars per hour. The roadway  
14:26is being used more efficiently as an asset, even  as the efficiency of individual journey times gets  
14:32lower. This phenomenon continues as speeds  get slower and density gets higher… up until  
14:38a point. According to the analysis behind this  set of numbers, on a 70 mile per hour highway,  
14:43that tipping point is 53 miles per hour. At that  speed, 2,400 cars get through a lane in an hour,  
14:51but it’s not really ever theoretically  possible to get more than 2,400 cars  
14:55per hour through one of these lanes. While the  intersection-less highway is the simplest example,  
15:01this same phenomenon occurs on all roads, with  any congestion—there just is a theoretical  
15:07maximum throughput that roads can’t surpass,  and overloading the road actually decreases  
15:12its efficiency below this maximum throughput.  The factors that lead to this phenomenon are  
15:17numerous, varied, and not universally agreed  upon or understood, and even the ones that are  
15:22are wildly complex, often being studied  through the theories of fluid dynamics,  
15:26but there are are at least some examples of  the nonlinear nature of traffic that make  
15:30intuitive sense. Thinking about the scenario  of a long line of cars at an intersection,  
15:34let’s say it takes the first driver at the light  a half second to react to it turning green. That’s  
15:39a half second of time lost by everyone in line,  as it delays all of their arrival to the light.  
15:45Let’s then say it takes the driver second in  line another half second to react to the first  
15:50driver moving. That’s now a full second of delay  for everyone behind them. Now, if there are only  
15:56five cars in line this isn’t a big deal, as the  fifth driver only loses two and a half seconds to  
16:01the cumulative inefficiencies of human reaction  times. If there are 20 cars, though, that’s 10  
16:06seconds. Since every car has to wait through  that whole back-up, the difference in travel  
16:11time between a lightly congested intersection  and a heavily congested one, in this example,  
16:16is about 10 seconds—and even that’s assuming  they all get through in the same light cycle.  
16:22Now, once again, this is only one small facet  of the overall phenomenon. There are a myriad  
16:26of different factors that compound and decrease  efficiency exponentially as roads get congested,  
16:32but the takeaway should be that considering  traffic is exponential, there’s a lot of logic  
16:36in reducing vehicle numbers at least below the  tipping point, to the point at which roadways  
16:41are most efficient. Manhattan’s roadways are  consistently well above that point, and congestion  
16:47pricing is the best idea for how to fix that.  Of course, all these benefits are understood  
16:52by the people who care most about this  issue—certainly not every New Yorker,  
16:56but what’s proved enough of them to keep the  concept alive a decade and a half after its  
17:00failure in the state assembly. As of the end of  2024, congestion pricing in the central business  
17:05core of New York City is the closest it’s ever  been to becoming a reality. The policy is set: $9  
17:12per commercial vehicle in 2025, then likely $12 in  ‘28, and $15 in 2031. The 100+ gantries required  
17:20to monitor roads and dole tolls are in place,  too. Now, all that’s left to do is survive the  
17:25new year and its first four days until the program  goes live on January 5th. But even with governor  
17:31Kathy Hochul’s greenlight, transit experts are  still holding their breath. And justifiably so. 
17:37It was on the back of the spectacular, public  meltdown of the MTA in 2017 that congestion  
17:42pricing returned into conversations over how to  again fix the city’s crumbling public transit.  
17:47As the New York Times noted, the $500 million a  year that congestion pricing would have generated  
17:52could’ve gone a long way to alleviating the city’s  unraveling transit disaster. Governor Andrew  
17:57Cuomo, for his part, took a more future forward  stance; that congestion pricing was an idea  
18:02whose time had finally come. And yet, since its  time arrived, there’ve been two state governors,  
18:08two city mayors, a pandemic, a handful of  lawsuits, and when the project was finally,  
18:13finally, finally on the verge, a pause from  governor Hochul in early 2024. In so many ways  
18:20congestion pricing as part of Fix NYC initiated  by Cuomo has played out as Bloomberg’s congestion  
18:26pricing as part of PlaNYC initiated a decade  before it. The more recent one was able to get  
18:31the votes at the state level, but has run up  against similarly heavy political opposition  
18:36in different forms—from outlying towns,  the state of New Jersey, and Donald Trump. 
18:41 But perhaps most confidence-inspiring as to  the long term prospects of such a program is the  
18:46longevity of those that 2008 and 2017 proposals  drew from, the congestion pricing models in London  
18:52and Stockholm that have remained in place for  two decades now. Each has now played out slightly  
18:57differently, as Stockholm’s has kept total cars  and congestion lower than London, but London has  
19:02made real strides in turning fees into additional  bike lanes and bus routes, but both remain success  
19:07stories that New York’s drawn from. And likely  most instructive for the New York urbanists is  
19:11the fact that congestion pricing became acceptable  to Londoners polled and popular with those polled  
19:16in Stockholm, popular enough to remain policy  and even survive rate hikes over the years.     
19:22So with history as a guide, what’s  most likely to happen is a continued,  
19:26bitter fight over New York’s new tolls until the  very hour they're implemented, but then, slowly,  
19:32as the streets get clearer, the air gets cleaner,  the noise quieter, the subways better, the  
19:38ambulances faster, New York will slowly learn to  love paying $9 to speed through lower Manhattan. 
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