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With more than 100 hours lost in traffic each year and $20 billion in losses, New York implemented an urban toll that reduced vehicle flow by 63% and made public transportation up to 28% faster.
Traffic-free New York? It seems like a distant dream, but the city has achieved something close to it in just two weeks. Known for its historic traffic jams and crowded streets, the “capital of the world” has decided to transform urban chaos into efficiency with a bold solution: urban tolling. Let’s explore how this happened and what it could mean for other major cities.
The urban chaos that paralyzed New York
When it comes to traffic, New York City was the world's biggest traffic jam champion. In 2023, drivers spent a staggering 101 hours a year stuck in traffic, especially in Manhattan. This number surpassed cities like London and Paris, showing the negative impact on productivity and humor of those who needed to move around the area.
According to Xataka, these traffic jams were coming at a high price: $20 billion in lost productivity per year. It was more than a mobility problem; it was a “theft” of New Yorkers’ time and money. Something had to change.
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The revolutionary solution: urban tolls
On January 5, 2025, New York City implemented a traffic toll in the most congested area of Manhattan, called the Congestion Relief Zone. The idea is simple but powerful: charge a fee to anyone entering the zone. The fee ranges from $14,50 for cars to more than $30 for trucks, with discounts for off-peak times and for E-ZPass users.
The goal? To encourage the use of public transport and ease traffic congestion. All money raised goes directly to public transport improvements, such as faster and more accessible buses.
Surprising results in record time
The results were apparent almost immediately in New York. In the first two weeks, traffic flow in the area dropped dramatically. In the first week alone, 273 fewer cars circulated in the area. This resulted in clearer streets and up to 40 percent higher speeds on some bridges and tunnels.
Buses, which used to face huge delays, are now much more efficient. The SIM24 route, which connects Manhattan to Staten Island, became seven minutes faster, while the B39 shaved four minutes off its route. For those who rely on public transport, this was a transformative change.
The population's reaction and the project's challenges
It wasn’t all praise. Despite the obvious benefits, the toll has faced resistance from residents, associations and even the teachers union. Some argue that the measure hurts workers who need to drive into Manhattan, while others question its long-term effectiveness.
There are legal challenges in New York. The bill faces lawsuits and criticism within the Democratic Party itself, especially from politicians in New Jersey, who argue that the measure affects negatively the residents of the neighboring state.
