# In Brief
New York City’s congestion pricing is set to take effect Sunday—but for the first month, Lyft will credit riders who pay the fee.
## Why the Program Paused and Was Reinstated
New York City’s congestion pricing program was initially set to begin in July but faced delays. The program, designed to reduce traffic in lower Manhattan while funding mass transit improvements, was paused by Governor Kathy Hochul in June after concerns about its impact on local businesses and transportation providers.
### How the Program Works
The congestion fee structure varies based on vehicle type and time of day:
- During daytime hours, a regular car in Manhattan below 60th Street will cost $9 to use.
- Rides using ride-hailing services like Uber or Lyft will only cost $1.50 per ride.
### Why the Change
Lyft noted that the congestion fee now includes an existing $2.75 charge for rides beginning, ending, or passing through Manhattan below 96th Street. To help riders adapt to this new expense, the company has introduced a credit system. Riders will receive credits equal to the amount over $1 per trip, which can be used toward future rides on Lyft or Citi Bike.
### How the Credit Works
Lyft passengers will have their fees adjusted by a small amount each week. For example, if a rider’s fee is $3 for the week, they would receive a $2 credit to apply toward their next ride. This credit system aims to mitigate the financial burden of the new congestion pricing while giving riders flexibility in how they manage their expenses.
## The Impact on Riders and Companies
### For Riders
The credit system is designed to make the transition to the new congestion pricing as smooth as possible. However, some riders may find it challenging to adjust to the higher fees, especially those who rely heavily on rides that pass through congested areas like Manhattan.
### For Companies
Lyft has faced criticism for its decision to reintroduce the congestion fee at a reduced rate after a temporary pause. Critics argue that the program could harm local businesses and create financial instability in the region.
## The Future of Congestion Pricing
The congestion pricing program is expected to remain in effect beyond the first month, with ongoing efforts to refine its implementation based on feedback from riders and businesses. The goal is to reduce traffic while generating revenue for essential public transit services.
### Key Takeaways
- New York City’s congestion pricing program was paused by Governor Kathy Hochul in June.
- The program will remain in effect but will be implemented at a reduced rate.
- Lyft has introduced a credit system to help riders adapt to the new congestion fee structure.
- The program aims to reduce traffic and fund mass transit improvements, but it has faced criticism from some businesses and riders.
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