Lower Manhattan's economy has gotten an almost billion-dollar boost in just the first month of congestion pricing's existence, the MTA said on Wednesday.
During a presentation on congestion pricing at the agency's monthly board meeting, MTA Chairman and CEO Janno Lieber noted that, according to Affinity, a credit card sales data aggregator, retail sales south of 60th Street have been $900 million higher in January 2025 compared to the same period last year.
In addition, restaurant reservations are up 7 percent year over year, according to restaurant reservation app Open Table.
"For all of the Chicken Littles out there, the economy in the congestion zone has been humming," Lieber said.
President Trump has said he wants to end the toll because he believes that reducing the amount of private cars in Midtown and Lower Manhattan would ruin the local economy. But that idea — which was neither supported by the congestion pricing environmental assessment nor by the experience of other cities with congestion pricing — has been proven false so far.
"There's been a lot of speculation about whether congestion pricing is good for the economy or bad for the economy, and good for the little guy or bad for the little guy," said Rachel Weinberger of Regional Plan Association. "And now we're showing positive signs for the economy and that means prosperity for everybody."
Roughly 2.8 million fewer cars have entered the congestion relief zone since the toll began, but it still makes sense that the economy has done well. Public transit, which has always brought the vast majority of people into the zone, has rebounded south of 60th Street faster than it has in the rest of the city.
Subway ridership at the stations in the congestion relief zone was at 75 percent of pre-pandemic ridership in January, which outpaces the 72 percent recovery citywide, according to State Comptroller Tom DiNapoli in a station-by-station tracker. That 75 percent of pre-pandemic ridership is up from 64 percent in January 2023 and 69 percent last year.
And given the millions who ride the subway, even 75 percent of pre-pandemic numbers still means roughly 4.3 million people daily — literally millions more people than drive into the central business district daily.
It is only two months in, but experts say it's extremely difficult to argue that congestion pricing is hurting the economy, given that foot traffic is also higher year-over-year in Lower Manhattan, and Broadway has had higher year-over-year attendance and revenue.
"Congestion pricing has not harmed the institutions that are in the zone," said Weinberger. "People are continuing to come in, and in higher numbers than they have been. All that is trending upward."
The positive economic news came as the MTA also revealed that it had received a formal letter from the once-supportive Federal Highway Administration demanding that the congestion pricing cameras be turned off on March 21. Gov. Hochul, who attended the board meeting, announced that they would remain on, at least until a court says otherwise.
