Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Bus Rapid Transit

Fact Remains: No Congestion Pricing = No Federal Funds

Last week, the parking garage industry-funded group Keep NYC Congestion Tax Free issued its latest salvo against congestion pricing. The report begins:

Keep NYC Congestion Tax Free proposes a cost-effective, efficient, fair and practical alternative plan that will address the problems posed by congestion in New York City and exceed the guidelines imposed by the Urban Partnership Agreement between the USDOT and New York City, New York State and the MTA.

The report then details ten traffic reducing measures as alternatives to congestion pricing.

Unfortunately, "Keep NYC's" language here is misleading. Regardless of whatever potential traffic reducing benefits these alternatives might provide, the U.S. Department of Transportation has made it very clear that New York City's congestion reduction plan must include congestion pricing or New York City will not get $354.5 million in federal Urban Partnership start-up funds, of which $342 million is for new buses, bus depots and Bus Rapid Transit.

The Urban Partnership agreement between the USDOT and NYC, NY State and the MTA, which can be downloaded here, says:

In the event the New York State legislature enacts and the New York City Council approves the Mayor's Plan, the Urban Partner agrees to undertake the following actions: (i) institute a broad area pricing system in Manhattan south of 86th Street…

(The "Mayor's Plan" is the congestion pricing plan and is what the feds considered as New York City's submission for Urban Partnership funding.)

Later in the document the USDOT explains what it would fund as an alternative to the mayor's congestion pricing plan:

5. Grant Agreements for Alternative Plan.

In the event that the New York State legislature enacts and the New York City Council approves an alternative congestion mitigation plan, the Department and the Urban Partner agree to negotiate the funding of such plan if it:

(a) Is reasonably expected to reduce average vehicle miles traveled by at least 6.3 percent across a geographic area of similar size and travel characteristics to the area proposed for pricing under the Mayor's Plan;

(b) Uses pricing as the principal mechanism for achieving this congestion reduction;

(c) Includes at least an eighteen month operation of congestion pricing;

In other words, if the legislatures moved the border of the pricing zone from 86th Street to 60th Street that would probably be OK. But both here, and in the agreement summary, the feds clearly state that the $354.5 million in Urban Partnership funding is contingent on congestion pricing. The feds use the words "area pricing system" and "congestion pricing" to make it clear they seek to support a fee for pricing street use, and that a value parking scheme and the other traffic reducing measures ­within the Keep NYC Congestion Tax Free report -- however effective -- are not what they are considering. Thus, any alternative congestion relief plan adopted by the legislatures which does not include congestion pricing will forfeit $354.5 million in federal Urban Partnership
start-up fund, including $342 million for better bus service.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Amazon Owes Nearly $10M Unpaid Fines for Idling in New York City

The online retail giant owes more than any other other company issued fines through the city's Citizens Air Complaint Program.

March 16, 2026

Mamdani Administration Wants To Allow A Brooklyn Hospital To Issue Parking Tickets

Could parking tickets be written by someone other than NYPD traffic agents and cops? Time will tell if this is a good idea or not.

March 16, 2026

Bus Companies Say There’s a Better Way to Take a ‘Great American Road Trip’ This Summer

As Americans start planning their summer vacations, the country’s largest inter-city bus operator is challenging them to leave their cars at home.

March 16, 2026

Monday’s Headlines: Beware of ‘Fraud’ Fraud Edition

The governor keeps pushing her Uber-backed car insurance plan. And we keep pushing back. Plus other news.

March 16, 2026

Hired Actors, Paid Media: Big Tech Has Already Dumped $8M Into Hochul’s Car Insurance Ploy

Buckets of cash and ads with professional actors are boosting Uber and Hochul's cause.

March 13, 2026

Claire Valdez: In Congress, I Will Fight For Transit and Bike Lanes

One of three leading candidates to succeed Rep. Nydia Velazquez shares her vision for how members of Congress can improve transportation.

March 13, 2026
See all posts