
New York City has officially started its controversial congestion pricing plan, which trucking interests have vowed to keep fighting. As of January 5 in New York City, heavy-duty trucks must pay $21.60 each time they enter Manhattan south of 60th Street between 5 AM and 9 PM on weekdays and between 9 AM and 9 PM on weekends. The fee for heavy-duty trucks under the Central Business District Tolling Program is set to rise to $28.80 in 2028 and $36.00 in 2031.
An article from the Wall Street Journal’s Logistics Report points out that other cities are watching closely with an eye toward enacting similar programs. San Francisco and Los Angeles have explored their own versions of business-district tolls. The congestion plan has been making its way through the courts for years. A judge rejected the Trucking Association of New York’s recent motion for preliminary injunction against the plan, allowing it to move forward.
These new fees add to the high costs for truckers in the New York metropolitan region, including tolls of $100 or more to cross some bridges, as well as some of the highest in the nation for insurance and labor. Stiff penalties for a long menu of infractions, including $115 tickets for double parking in neighborhoods with limited curb space and fines of $350 for idling for more than three minutes, add to the financial toll. About 120,000 trucks and commercial vehicles enter the city each day, according to the city transportation department.
And to make matters worse, in 2022 the Mayor’s Office of Immigrant Affairs estimated there were about 412,000 undocumented immigrants in the city, down from 611,000 in 2012. Additionally, since the asylum seeker crisis began, over 223,000 migrants have entered New York City, with more than 58,000 still in taxpayer-funded shelters as of November 2024. These figures suggest a significant undocumented immigrant population in NYC, but exact numbers are hard to determine.
In June 2019, New York State enacted the Green Light Law, allowing undocumented immigrants to obtain standard, non-commercial driver’s licenses. Prior to the law’s initial implementation, the New York City Comptroller’s Office estimated that about 150,000 undocumented immigrants in the city would obtain driver’s licenses under this new legislation. However, specific data on the actual number of licenses issued to undocumented immigrants since the law’s enactment is not readily available. The New York State Department of Motor Vehicles does not publicly disclose applicants’ immigration status, ensuring privacy and encouraging participation without fear of exposure. Therefore, while initial estimates provide a general idea, the exact number of undocumented immigrants with driver’s licenses in New York remains undetermined.
So, why does the Trucking Association of New York (TANY) oppose NYC’s congestion pricing? The association contends that the disproportionate pricing structure unfairly targets trucking operators (4% of all NYC vehicle traffic) on a per-trip basis, while passenger vehicles (which constitute 87% of all NYC vehicle traffic) are only charged once per day. “This burden – which is far heavier for the trucking industry than any other segment – will have many significant downstream impacts on the entire local economy,” said Kendra Hems, the TANY President, in a recent statement about this issue.
“While congestion pricing has only just taken effect, our drivers are already bracing for the severe impact these tolls will have on their operations in the days and weeks ahead,” Hems said. The association is not inherently opposed to congestion pricing, she explained, but it objects to the disproportionate pricing structure. “The trucking industry is not able to adapt like commuters who have the ability to use alternative modes of transportation,” Hems said. “Grocery stores, after all, can’t be stocked with shipments that travel on the subway.”
“Additionally, while we fully support overnight deliveries, our drivers do not determine when and where their deliveries occur – their customers do. In other words, drivers do not have the luxury of being able to drive during off-peak hours. “The trucking industry fully supports finding a way to reduce traffic and improve the environment, but these efforts should not come at the cost of businesses and residents who in many cases serve as a lifeline to New Yorkers.”
Last summer, New York Governor Kathy Horchul put the program on pause just weeks before it was scheduled to go into effect. She revived it in November with lower pricing. For large trucks, for instance, the fee came down from the original proposal of $36 to $21.60. “When congestion pricing was delayed earlier in 2024, we had the chance to go back to the drawing board to ensure parity for much of the city’s economic backbone, including the trucking industry, which moves nearly 90 percent of goods in the five boroughs,” Hems said.
The association said the congestion pricing program could lead to unstocked store shelves, restaurants unable to get needed food and supplies, and a lack of immediate access to life saving medications. “We will continue to advocate for the needs of the communities we serve. As such, we will take this challenge as far as we need to,” added Hems.
There have been a number of other legal challenges against the congestion pricing plan, including one from the state of New Jersey, which predicted environmental harm if traffic gets worse on the other side of the river. According to published reports, there’s been a rush to get the plan implemented before President Donald Trump takes office. The New York Times reports that the new president has promised to end it permanently once he takes office on January 20, but his options are limited now that the plan is underway.
The solution is simple. Every motor carrier should now institute a Delivery Surcharge equal to the congestion price, plus 10%. This extra fee is for the discrimination against the trucking industry and the cost of paperwork. I have been predicting these surcharges to come for years, and it appears now might be a good time for them to start! If you have any comments or questions, I can be reached through NTA at (800) 805-0040 or on our website 24/7at www.ntassoc.com.