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Cars pay only once a day

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Applies to Manhattan zone south of 60th Street

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Projected to raise $500 million in first year

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Traffic has slowed to 7 mph on average due to congestion

By David Shepardson

WASHINGTON, Jan 6 (Reuters) - New York City drivers on

Monday had to pay $9 to enter Manhattan under the first such

congestion fee in the U.S., which seeks to raise billions for

mass transit and reduce traffic jams.

The fee went into effect on Sunday after New Jersey failed

on Friday to convince a judge to halt it pending an appeal.

The city rushed to implement the charge before

President-elect Donald Trump's inauguration on Jan. 20. Trump,

who has a Manhattan residence, opposes the fee and said he would

seek to block it.

New York is imposing the $9 charge on passenger vehicles in

the daytime in Manhattan south of 60th Street. Trucks and buses

will pay up to $21.60. The fee is reduced by 75% at night.

Charged via electronic license plate readers, private cars

will pay once a day regardless of how many trips they make.

Taxis will pay 75 cents per trip and ride-share vehicles

reserved by apps like Uber ( UBER ) and Lyft ( LYFT ) will pay

$1.50 per trip.

While New York is the first U.S. city to impose such a toll,

London implemented one in 2003, and the fee is now 15 pounds

($19).

Sarah Kaufman, director of New York University's Rudin Center

for Transportation, said Monday that the experience of other

world cities shows that the charge initially is very unpopular.

Then residents "began to appreciate the reduction in traffic

and the increased transit services. So ideally, that's what will

happen here in New York," she said.

New York's Metropolitan Transportation Authority said the

program will result in 80,000 fewer cars a day, about an 11%

reduction, in what it called the most congested district in the

United States.

More than 700,000 vehicles enter the Manhattan central

business district daily, slowing traffic to around 7 mph (11

kph) on average. That is 23% slower than in 2010.

The city estimates the congestion charge will bring in $500

million in its first year. New York Governor Kathy Hochul said

the money would underpin $15 billion in debt financing for

investment in subways, buses and other mass transit

improvements.