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Traffic in Manhattan's central district fell by 7.5% after

fee

introduction

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Congestion fee aims to raise billions for NYC mass transit

upgrades

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Trump opposes fee, says he wants to block it after

inauguration

By David Shepardson

WASHINGTON, Jan 13 (Reuters) - Traffic in Manhattan's

central business district fell by 7.5% last week and 273,000

fewer cars entered the borough's central business district after

the first congestion pricing fee in the U.S. took effect on Jan.

5, New York City transit officials said on Monday.

The fee 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 early data backs up what New Yorkers have been telling us

all week - traffic is down, the streets feel safer, and buses

are moving faster," said Janno Lieber, head of the Metropolitan

Transportation Authority. Overall travel times are 30-40% faster

on inbound river crossings into Manhattan, which has the most

congested traffic in the United States.

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.

The fee went into effect after neighboring New Jersey

failed to convince a judge to halt it. 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.

The MTA said less traffic means faster bus speeds,

especially in the morning peak period.

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 ($18.33). Singapore and Sweden also have

congestion pricing plans.

The MTA has said the program will eventually result in

80,000 fewer cars a day, about an 11% reduction. Before the fee,

the MTA said more than 700,000 vehicles entered the Manhattan

central business district daily, slowing traffic to around 7 mph

(11 kph) 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 the

MTA's two commuter rail systems.