New York City said on Wednesday that it could introduce a daily traffic congestion charge of up to $23 late in 2023, after a study released on Wednesday projected a 15 to 20 percent reduction in the number of cars entering Manhattan.
Vehicles entering or remaining in the central business district, defined as 60th Street in midtown Manhattan and Battery Park on Manhattan's southern tip, could be charged a daily variable toll by the city.
New York City, the US city with the most congestion, would become the first major city to introduce a charge after London, which began a similar scheme in 2003.
The plan was approved by New York lawmakers in 2019 and originally intended to be implemented in 2021, but was not carried out by the government of former President Donald Trump.
The Federal Highway Administration said it approved the environmental assessment and will review public comments submitted by September 9th, but it didn't give a timeline for its decision.
The fee could be put in place up to 10 months after approval is granted, according to the Metropolitan Transportation Authority of New York.
MTA CEO Janno Lieber said that congestion pricing is good for the environment, good for public transit and good for New York and the region.
During peak times, drivers could pay $9 to $23 to enter the city, while in the evenings tolls could be as low as $5. In addition to that, drivers could apply existing bridge and tunnel tolls to congestion charges.