Andrew Cuomo

New York's high-cost traffic war

New York City traffic
Photo: Johannes Eisele/AFP/Getty Images

Come 2021, American cities will be able to look to New York to determine whether traffic can be reduced if you tax it.

Catch up quick: Cars and trucks will pay fees, based on the time of day and day of week, to enter Manhattan south of 60th street. (Passenger cars will only be charged once per day.) The fees will be set by the same authority that runs the subway, with the cash intended for much-needed capital improvements (including that subway).

New York becomes first state to introduce congestion pricing

Gov. Andrew Cuomo
Gov. Andrew Cuomo. Photo: Drew Angerer/Getty Images

The New York State Legislature and Gov. Andrew Cuomo on Sunday agreed to a $175 billion budget on Sunday, which includes a new congestion pricing policy that would charge a fee to vehicles traveling south of 60th Street, the New York Times reports.

Why it matters: Revenue from the congestion toll — which is the first such policy in the country — will be used to help renovate the city's crumbling subway system. It's part of a broader push by state officials scrambling to manage the increased financial stress from the city's rapid growth.