New York City Reduces Traffic 11% with Congestion Pricing

Why this is here: Morning peak speeds on major crossings into Manhattan improved an average of 23%, with the Holland Tunnel experiencing a standout gain of 51%.

The Metropolitan Transportation Authority released a report showing New York City’s Congestion Relief Zone decreased vehicle entries by 11%. Launched in January 2025, the program charges drivers a fee to enter Manhattan’s core business district during peak hours. Vehicle miles traveled inside the zone dropped 7.1%, while speeds rose 4.6% overall, with the Holland Tunnel seeing a 51% improvement during toll hours.

The program includes a Low-Income Discount Plan offering a 50% toll reduction for eligible drivers earning under $50,000. Residents earning under $60,000 can also claim a state tax credit. Bus speeds within the zone increased 2.3%, and subway ridership grew by roughly 9%.

Revenue generated funds transit improvements like electric buses and station accessibility. Greenhouse gas emissions fell about 6.1%, and traffic crashes declined. The MTA continues to monitor the program’s long-term effects and potential adjustments for other cities.