Hochul: Congestion Pricing Raised $550M for MTA and Cut Traffic by 27M Cars in Year One

On January 5, 2026, 365 days after the tolling cameras went on from the Battery to 60th Street in Manhattan, Gov. Kathy Hochul, Mayor Zohran Mamdani and MTA Chair and CEO Janno Leiber gathered with supporters who praised the results of the program which they said cut vehicular traffic by 73,000 cars a day and raised $550 million for the MTA.

The pro-Congestion Pricing crowd, represented by advocacy groups, politicians, and individuals, bonded together at the rally held inside the McBurney YMCA gym and cheered the one-year results.

“Traffic entering the congestion zone is down 11 percent,” said Gov. Hochul, “And this is incredible–27 million fewer cars going into that zone over the last year, 27 million. And the air is cleaner—pollution is down more than 20 percent in one year. People with asthma are breathing better. Little kids don’t have to worry about this. And our streets are safer. New York City recorded its safest streets in history.”

The Trump administration and his Secretary of Transportation Sean Duffy are still fighting in federal court to end the program. Judge Lewis Lerman set Jan. 28 as the date to hear oral arguments in the long running feud. So far, NYS and the MTA have successfully fought off all the legal challenges.

The statistics flowing after the one-year anniversary are telling for the first American city to initiate such an urban tolling plan. Drivers are saving as much as 15 minutes during their daily commutes; morning rush hour drives as much as 23 percent faster. Going through the Lincoln Tunnel from New Jersey was said to be 25 percent quicker. Drivers going through the Holland Tunnel traveled at a 51 percent faster clip and the Edward Koch/Queensboro Bridge is now almost 30 percent faster. All the bridges and tunnels below 60th Street have had reductions in the time it takes to cross them.

In the meantime, preliminary projections for 2025 tolling revenues are expected to generate $550 million in net revenue, allowing the MTA to proceed with $15 billion in transit system funding for its Capital Plan, which includes new subway cars, new buses, and bringing the whole transit system infrastructure up to 21st Century standards.

“Congestion pricing is more than a toll—it’s a catalyst for a better New York,” said Sarah M. Kaufman, Director of NYU’s Rudin Center for Transportation. She also noted that the funds generated are already supporting transformative investments in the transit system, laying the groundwork for a more reliable, equitable, and sustainable transportation network.

Another benefit? improved air quality since congestion pricing launched. A recent Cornell University study found that air pollution caused by particulate matter, dropped by 22 percent in the congestion zones along with a six percent reduction in greenhouse gases. Better air is also the case across the five boroughs and surrounding suburbs. Pollution is down more than 20 percent in one year, stated Hochul.

Mayor Mamdani, unlike his predecessor Eric Adams, who was lukewarm on the tolling plan, was on board with congestion pricing, even if drivers living within the zone are still angry that there is no resident discount.

“Working New Yorkers deserve less congestion, a well-funded transit system, and a safer and quieter place to call home, and I’m proud to see congestion pricing deliver on that promise,” he proclaimed.

Traffic deaths are down in the city and the politicos credited this to congestion pricing as well. Citywide, 2025 saw the fewest traffic deaths in recorded history, with 205 fatalities, down 19 percent from 2024.

Bus speeds in the Congestion Zone which was touted as another potential advantage, did not seem to benefit much from congestion pricing, moving only 2.3 percent faster, but it at least reversed the trend of declining speeds seen in 2023 and 2024. Weekday Zone vehicle speeds were up four percent compared to 2024, and weekends saw a 6.2 percent improvement.

“Congestion Pricing is an unmitigated success, providing relief for commuters in and around the Central Business District whether they take the bus or drive,” said Lisa Daglian, Executive Director of the Permanent Citizens Advisory Committee to the MTA

More cautious was Charles Komanoff, a congestion pricing policy analyst who posted a January 2 essay in the online journal VITAL CITY in which he said he felt the early euphoria of freer-flowing streets has dissipated. While some traffic increase was expected, collected data from Ubers and yellow cabs in traffic suggest travel speeds within the zone now are barely surpassing those from a year earlier, Nevertheless, transit trips are up, as are broader economic indicators from foot traffic to storefront leasing rates, he said.

All is not lost, according to what he said to this reporter at the end of the gathering, making an apt analogy to Congestion Pricing;

“Today is a celebration—the baby is one. Maybe the baby isn’t performing Mozart or reading Einstein, but it’s on the way...”

While the current charge for congestion tolling during most hours is $9.00 for cars, Governor Kathy Hochul said there will be increases in 2028 and 2031 per the agreement between the Biden-era Federal Highway Administration and New York State.

Further information can be gleaned from the MTA’s one-year report. https://www.mta.info/document/195631