The MTA estimates congestion pricing plan will reduce 20% traffic and will generate $1 billion annually|Joiseyshowaa|CC BY-SA 2.0

New York City is getting closer to implementing congestion pricing, a fee charged to drivers entering downtown, aiming to reduce rush hour traffic and improve public transit.

The city is awaiting final approval from the federal authorities to roll out the first congestion charge starting April 2024.

The Metropolitan Transportation (MTA) estimates charging people for driving downtown will generate $1 billion annually, which will be used for major capital projects. But there are concerns about its fairness and impact on low-income individuals.

The policy is expected to reduce daily vehicle entries by up to 20%.

NYC’s adoption of congestion pricing in Manhattan has encouraged Los Angeles, San Francisco, Philadelphia and Seattle to implement similar measures.

The plan has already proven successful in cities like London, Stockholm and Singapore.

It is yet unknown how much people will have to shell out, but it could range from $9 to $29 a day for cars. Low-income drivers may get discounted rates.