In a surprising U-torn, Kathy Hochul, governor of New York, cancelled plans to impose a contentious $15 (£11) congestion fee, saying it would be an "obstacle" to the city's economy.
With the plan in place, New York would have been the first US city to impose congestion charges at the end of the month.
Transportation is the leading cause of greenhouse gas emissions in the US. However, proponents of the plan have primarily highlighted its immediate advantages, such as reducing air pollution that aggravates conditions like asthma in city dwellers and creating more space in New York's notoriously congested streets. The average traffic speed in Manhattan is currently about 7 mph, down from about 9 mph 15 years ago. Every day, about 700,000 vehicles enter the lower half of the city, frequently at a crawl.
But what were the congestion charge plans and why were they halted?
What were the congestion charge plans?
The proposal stipulated that passengers entering Manhattan below 60th Street, or about the region south of Central Park, would have to pay a minimum of $15, with bigger vehicles being subject to additional fees.
These costs would be in addition to the high tolls associated with entering Manhattan via bridges and tunnels.
Why were they halted at the last minute?
Ms Hochul said that her administration had decided to "indefinitely pause" the proposed congestion pricing scheme due to the "difficult decision that implementing the planned congestion pricing system risks too many unintended consequences".
Hochul expressed concerns about the plan's cost to low-income individuals who commute to Manhattan during a period of comparatively high inflation.
She said: “Let’s be real: A $15 charge may not seem like a lot to someone who has the means, but it can break the budget of a hardworking middle-class household.”
However, the governor's thinking has also been influenced by political considerations, as suburban districts close to New York City, which are home to a large population of car owners, are anticipated to be hotly contested in the November elections.
David Zipper, a transportation expert and senior fellow at the MIT Mobility Initiative says the halt is “a slap in the face”.
He added: “New York is America’s biggest city, with the lowest levels of car ownership and highest share of transit ridership – you’d expect to see congestion pricing there first.
“Los Angeles and Boston were looking to New York, this could’ve spread nationwide, and yet Hochul has decided that low-income residents matter less than a few grumpy suburbanites. It’s deflating and it’s a slap in the face.”
Approximately 50 per cent of households in New York City do not own a car, and 85 per cent of commuters to Manhattan use the city's extensive bus, train, and subway system to get there. According to the idea, only 1.5 percent of commuters are expected to pay the full $15 price.
Opponents of the plan praised the decision, viewing it as a financial grab that targeted regular families.
What other big cities have congestion charges?
London has congestion zones with a fee of £15. These zones operate from 7am to 6pm Monday through Friday.
On Saturdays and bank holidays, they run from 12pm to 6pm.
Sweden’s capital has also adopted the congestion charge.
During certain hours, cars entering and leaving the Stockholm city centre as well as those travelling on Essingeleden are subject to congestion fees. The daily and vehicle maximum is 135 SEK (£10).
Other cities include the Czech Republic’s Znojmo, Italy’s Milan and Latvia’s Riga.
