New York's groundbreaking plan to implement congestion pricing in Manhattan has received the crucial federal approval it needed. This paves the way for the city to potentially start charging drivers entering the busiest parts of Manhattan as early as spring 2024.

This move aligns New York City with other global metropolises like London, Singapore, and Stockholm, which have already adopted similar tolling systems for their congested downtown areas. The program aims to alleviate traffic, enhance air quality, and generate revenue for the city's public transportation network.

One potential scenario being considered involves charging drivers up to $23 per day to enter Manhattan below 60th Street. The final toll amount will be determined by the Metropolitan Transportation Authority (MTA), the entity responsible for overseeing the project, which has faced delays for years.

Governor Kathy Hochul announced the Federal Highway Administration's approval on Monday, marking the final federal hurdle cleared for the congestion pricing plan. She expressed her enthusiasm to move forward with the implementation phase now that the federal government has given its consent.

Drivers heading into Manhattan already face significant tolls on several bridges and tunnels connecting the city across the surrounding rivers. These new tolls for the southern portion of Manhattan would be an additional expense layered on top of the existing charges.

The anticipated revenue generated from these new tolls is estimated at $1 billion annually. These funds are earmarked for financing improvements and upgrades to the subway, bus, and commuter rail systems managed by the MTA.

The conceptual framework for congestion pricing was approved by the state Legislature back in 2019. However, a combination of the COVID-19 pandemic and a lack of clear direction from federal regulators caused significant delays.

The plan has encountered strong opposition from New Jersey officials, as it could dramatically increase commuting costs for drivers entering Manhattan from the state. Taxi and car service drivers have also voiced concerns, arguing that the added tolls would make fares excessively high. In response, some MTA proposals have included capping tolls for these for-hire vehicles.