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NYC TO IMPLEMENT SURGE PRICING DOWNTOWN DURING PEAK HOURS: KIPLINGER ECONOMIC
FORECASTS

The city will introduce "congestion pricing" in 2024.

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(Image credit: Getty Images)

By Sean Lengell
published 1 day ago

Road congestion is nothing new, but it is always frustrating. In looking for new
ways to combat heavy traffic, some big cities are charging motorists more money
for their time on the road. To help you understand what is going on and what we
expect to happen in the future, our highly-experienced Kiplinger Letter team
will keep you abreast of the latest developments and forecasts (Get a free issue
of The Kiplinger Letter or subscribe). You'll get all the latest news first by
subscribing, but we will publish many (but not all) of the forecasts a few days
afterward online. Here’s the latest...



More cities are looking at charging drivers a fee to enter downtown areas. New
York City is the first place on track to implement congestion pricing, for much
of lower and midtown Manhattan. Other major U.S. cities will study the use of
this pricing system for their downtowns, especially if the New York plan proves
successful. 



Several crowded foreign cities already have tried congestion pricing — including
London, Singapore, Stockholm and Milan and most have reported success. Charging
a fee to use certain highways or lanes during peak hours in urban areas has been
done for years in the U.S., but it is a new idea for downtowns specifically. 


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In New York City, Manhattan drivers can expect to pay as much as $23 at peak
hours, with reduced pricing for low-income motorists as well as taxis and
rideshare drivers. The program is expected to bring in $1 billion annually and
reduce vehicles entering Manhattan by as much as 20%. The city is targeting a
spring 2024 rollout.

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This forecast first appeared in The Kiplinger Letter, which has been running
since 1923 and is a collection of concise weekly forecasts on business and
economic trends, as well as what to expect from Washington, to help you
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Subscribe to The Kiplinger Letter.




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Topics
Forecast Economic Forecasts


Sean Lengell
Social Links Navigation
Associate Editor, The Kiplinger Letter

Sean Lengell covers Congress and government policy for The Kiplinger Letter.
Before joining Kiplinger in January 2017 he served as a congressional reporter
for eight years with the Washington Examiner and the Washington Times. He
previously covered local news for the Tampa (Fla.) Tribune. A native of northern
Illinois who spent much of his youth in St. Petersburg, Fla., he holds a
bachelor's degree in English from Marquette University.


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