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New York City's car fee plan wins $354m in US transit aid

Manhattan toll touted as remedy for congestion

NEW YORK -- New York City will receive $354 million from Washington to boost bus service before it starts charging Manhattan drivers an $8 per-car fee to fight gridlock, the mayor and governor said yesterday.

While the award was $150 million less than Mayor Michael Bloomberg had sought, the new fees for driving into Manhattan south of 86th Street will go into effect in 18 months unless the state Legislature produces an alternative.

The award represents a remarkable turnaround after state lawmakers nearly rejected the plan and appeared to kill any chance of getting the federal aid.

"We've worked very hard to secure these funds, and this is a major victory for the people of New York City," said Mayor Michael Bloomberg in a joint statement with Governor Eliot Spitzer.

The City Council and Legislature could still reject the congestion pricing plan that Bloomberg modeled after London's. New York City will only get $1.6 million of federal aid if lawmakers fail to enact any plan, a mayoral spokesman said.

Democratic Assembly Speaker Sheldon Silver, who killed the mayor's plans for a midtown baseball stadium, made it clear that Bloomberg faces some "strong opposition."

Silver noted a new commission will study the mayor's plan and other options including reducing subway fares in peak periods and lowering bridge and tunnel tolls during off-hours. Last week's torrential rains, which shut the city's subways for the third time in seven months, and the recent bridge collapse in Minnesota have heightened concerns about New York City's infrastructure, Silver added.

The independent mayor's traffic-fighting program was hotly opposed by lawmakers from the outer boroughs, where many of the city's poorer residents live and where subway and bus links can be quite remote. Several lawmakers from the more wealthy surrounding suburbs also fiercely objected.

The mayor said the new fees, which will only be charged on week days from 6:00 a.m. to 6:00 p.m., were needed to raise $32 billion to expand crowded subways, buses, and commuter rails that will have to serve another 1 million people by 2030. Trucks would have to pay $21 to enter Manhattan.

If Bloomberg, a former Republican who is a possible presidential candidate, gets his way, the state mass transit agency will get $184 million for 367 new buses. New York City will get almost $113 million to offer bus rapid transit in all five boroughs.

Nearly $16 million would be spent boosting ferry service to Manhattan. The plan also calls for enhancing walkways and traffic flows in 223 intersections. 

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