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New Jersey governor urges Trump to review New York City's congestion pricing plan
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New Jersey governor urges Trump to review New York City's congestion pricing plan
Jan 20, 2025 4:19 PM

Jan 20 (Reuters) - New Jersey Governor Phil Murphy on

Monday asked President Donald Trump to reexamine the federal

government's approval of New York City's first-in-the-nation

congestion pricing program that began on Jan. 5.

Murphy, a Democrat, said the program is a "disaster for New

Jersey commuters and must receive the close look it deserves

from the federal government."

Under the program, passenger vehicles are charged $9 during

peak periods in Manhattan south of 60th Street. Trucks and buses

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

It is designed to reduce traffic and raise billions for

mass transit, with most of the revenue generated targeted to

upgrade the city's subway and bus systems.

The White House did not immediately comment, but a

spokesperson for Trump in November criticized the plan.

During the first week after the fee was imposed, traffic in

Manhattan's central business district fell by 7.5%.

The fee went into effect after New Jersey failed to

convince a judge to halt it.

Charged via electronic license plate readers, private cars

pay once a day regardless of how many trips they make into the

central business district. Taxis pay 75 cents per trip and

ride-share vehicles reserved by apps like Uber ( UBER ) and Lyft ( LYFT )

pay $1.50 per trip.

A few other cities around the world already have congestion

pricing systems. London, which implemented its system in 2003,

now charges 15 pounds ($18.49). Singapore and Sweden also have

congestion pricing plans.

Before the fee went into effect, New York said more than

700,000 vehicles entered the Manhattan central business district

daily, slowing traffic to around 7 miles per hour (11 km per

hour) on average, which 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 mass

transit capital improvements, with 80% of the money to be spent

on the subway and bus system, and the other 20% spent on two

commuter rail systems.

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