On March 21, Matthew W. Daus, Esq., Founder and Chair of the Transportation Practice Group at the Windels Marx law firm, participated in a panel hosted by the Massachusetts Institute of Technology (MIT) Mobility Forum’s Jinhua Zhao, Professor of Cities and Transportation and founder of the MIT Mobility Initiative. The seminar was titled, “Congestion Pricing in New York City: ‘If you can make it there, can you make it anywhere?’”
New York City’s congestion pricing set a precedent for how American cities can address the dual challenges of urban congestion and climate change – a critical step toward creating healthier, more equitable, and sustainable urban environments.
Daus was joined by Sam Schwartz, founder of Sam Schwartz Consulting (now TYLin) and former NYC Traffic Commissioner, and Will Carry, Assistant Commissioner for Policy at the NYC Department of Transportation. They discussed the program’s history, presented the latest data and impacts, and shared international experiences for comparison. They also examined current challenges, future prospects, and insights other cities can gain from New York’s experience.
Schwartz outlined the drama that has unfolded between the city, state, and federal governments over congestion pricing. He is optimistic the City and the MTA will prevail against the Trump administration but warns there may be a high price to pay in terms of other funding sources the President may choose to withhold as a result. Carry presented the results seen so far from the first few months of the program, showing that 2.8 million fewer vehicles entered NYC’s Central Business District (CBD), representing about 60,000 vehicles per day. River crossing trip times decreased while travel speeds increased, and data showed that 57% of CBD entries are personal vehicles and 36% are taxis and for-hire vehicles (FHVs).
Daus discussed the history of NYC’s congestion pricing, dating back to 2007, when Mayor Bloomberg’s initiative failed to implement the program. A 2015 proposal, led by Sam Schwartz, also failed, despite some legislative momentum. Daus focused on the equity implications of congestion pricing, particularly for taxi and FHV drivers. He cited the UTRC report, “Equity Impacts of NYC Congestion Pricing on Taxi and For-Hire Vehicle Drivers and Passengers,” which warned of “double taxation,” since passengers already pay a congestion surcharge. He noted that the industry has yet to fully recover from COVID-19, and additional charges could reduce ridership and threaten jobs. He pointed out that taxis and FHVs are already subject to surcharges, including the MTA State Surcharge of $0.50 on every yellow and green taxi trip, which has raised over $1 billion since 2009. Taxi and FHV riders also pay a $2.50 and $2.75 congestion surcharge, respectively, on any trip in Manhattan below 96th Street, which has generated about $2 billion for the MTA since 2019.
A recent analysis of NYC yellow taxi data from January 2024 and 2025 showed that total trips increased 33% citywide since congestion pricing started, with especially strong growth in trips beginning and ending within the congestion zone – up 40% – even though travel times remained largely flat. He also noted that revenue from these trips increased 28%, suggesting a rebound in the taxi sector.
Finally, Daus addressed the uncertain future of NYC’s congestion pricing, outlining potential legal and political threats, including lawsuits from New Jersey and federal challenges led by President Trump and Transportation Secretary Duffy. He speculated that although some lawsuits may fail, political pressure could still jeopardize the program. He also posed a larger question about the MTA’s future… whether it will reform to become a lean, effective transit agency or remain what critics call a “jobs program that provides transit.” He noted that NYC cannot implement congestion pricing on its own due to federal restrictions on tolling roads that receive federal aid.
Source: Windels Marx
