By David Shepardson
(Reuters) -President Donald Trump’s administration has given New York City a deadline of March 21 to end the congestion pricing program begun last month, a policy that was intended to reduce traffic in Manhattan’s central business district and raise money to upgrade aging subway and bus systems.
The U.S. Transportation Department last week rescinded federal approval of the program that had been given under the Republican president’s Democratic predecessor Joe Biden. The department set the deadline for ending the program in a letter letter made public on Wednesday.
The Metropolitan Transportation Authority (MTA) and a New York bridge authority have filed suit to block the administration’s action.
New York state Governor Kathy Hochul, a Democrat, met with Trump last Friday in Washington to try to make the case for preserving the program. The MTA said in a statement on Wednesday that “our position is clear: this is not a lawful order. We have already filed a lawsuit and now it’s up to the courts to decide.”
The Federal Highway Administration set the deadline, according to the letter, to provide time “to terminate operations” in an orderly manner.
The MTA said on Monday that in January it collected $48.6 million with $11.1 million in expenses and net operating revenue of $37.5 million under the program.
Charged via electronic license plate readers, private cars pay once a day regardless of how many trips they make into the central business district. Under the program, most passenger vehicles are charged $9 during peak periods to enter Manhattan south of 60th Street. Trucks and buses pay up to $21.60. The fee is reduced by 75% at night.
The MTA, which has issued $900 million in debt for the congestion system infrastructure costs and capital projects, projected on Monday that is on track to raise $500 million in net revenue the first year under the program.
Hochul said previously that funds raised would underpin $15 billion in debt financing for mass transit capital improvements.
Before the fee, New York said more than 700,000 vehicles entered the Manhattan central business district daily, slowing traffic to around 7 miles per hour (11 kph) on average, which is 23% slower than in 2010.
A few other cities have implemented congestion pricing systems. London, which began its system in 2003, now charges 15 pounds ($18.70). Singapore and Sweden also have congestion pricing plans.
(Reporting by David Shepardson; Editing by Will Dunham)
