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

Oonee, The Bike Parking Company, Files Formal Protest After DOT Snub

Brooklyn bike parking start-up Oonee is calling foul play on the city's selection of another company for its secure bike parking program.

December 12, 2025

OPINION: I’m Sick Of Unsafe 31st Street And The Judge Who Killed Our Shot at Fixing It

An Astoria mom demands that the city appeal Judge Cheree Buggs's ruling ordering the removal of the 31st bike lane.

December 12, 2025

‘I’m Always on the Bus’: How Transit Advocacy Helped Katie Wilson Become Seattle’s Next Mayor

"I really think that our public transit system is such a big part of people's daily experience of government," says the incoming mayor of the Emerald City.

December 12, 2025

Friday’s Headlines: Blue Highways Edition

The DOT showed off its first water-to-cargo-bike delivery route. Plus other news.

December 12, 2025

Court Docs Shed Light on Instacart’s Car-Dominant Delivery Business

Instcart's reliance on cars adds traffic, pollution and the potential for road violence to city streets.

December 11, 2025

More Truck Routes Are Coming To A Street Near You

The DOT wants to rein in freight trucks by adding more than 45 miles to the city’s existing network of truck routes.

December 11, 2025
See all posts