New York City's congestion pricing plan was unveiled by officials on Thursday, proposing a $15 toll for most drivers entering Manhattan's central business district. If approved by transportation officials early next year, this congestion pricing plan will be the first of its kind in the United States. The neighboring state of New Jersey has already filed a lawsuit against the plan. The toll rates for passenger cars would be $15, while small trucks would be charged $24 and large trucks would face a fee of $36. Similar programs are already in place in cities like London and Stockholm, but New York City aims to become the first in the U.S. to implement such a system.

The revenue generated from these tolls is projected to be around $1 billion annually. This funding would be used to upgrade and improve the city's mass transit systems. The proposal includes discounts for travel between 9 p.m. and 5 a.m. and for frequent low-income drivers. Government vehicles, such as municipal garbage trucks, would be exempt from the tolls. However, taxi drivers would pass on a $1.25 surcharge to their passengers for entering the congestion zone, while app-based ride-hail passengers would face a $2.50 surcharge.

Supporters of the congestion pricing plan argue that it would not only provide necessary funding for transit improvements but also lead to improved air quality and reduced traffic congestion. Carl Weisbrod, chair of the Traffic Mobility Review Board, stated that without congestion pricing, the city would be faced with worsening traffic conditions and insufficient funds to maintain quality service.

However, not everyone is in favor of the plan. Taxi drivers, who have already faced challenges from ride-hail services like Uber and Lyft, oppose the tolls and had pushed for a full exemption. Bhairavi Desai, executive director of the New York City Taxi Workers Alliance, expressed concerns about the impact on thousands of driver families who could face increased poverty.

The plan also faces opposition from New Jersey Governor Phil Murphy, who criticized the recommended toll structure. He believes that the lack of toll credits for the George Washington Bridge would result in increased congestion and excessive tolling at New Jersey crossings into Manhattan. Governor Murphy filed a federal lawsuit against congestion pricing in July.

The Metropolitan Transportation Authority (MTA) board will ultimately vote on the plan after a series of public hearings scheduled for February 2024. If approved, the congestion pricing system is expected to begin in May, with the necessary infrastructure already in place. While some drivers and critics argue that it is an additional financial burden, proponents believe it is necessary to alleviate congestion and support the city's transit infrastructure.