New York, Jun 28 (IANS): New York Governor Kathy Hochul joined elected officials and transit advocates to formally announce that the US government has given its approval to the Metropolitan Transportation Authority's (MTA) congestion pricing plan, which is expected to generate another $1 billion yearly.

The green light on Tuesday came after the Federal Highway Administration issued a Finding of No Significant Impact from congestion pricing, reports Xinhua news agency.

The program could begin as soon as the spring of 2024, bringing New York City into line with places like London, Singapore, and Stockholm that have implemented similar tolling programs for highly congested business districts.

Part of an effort to reduce traffic, improve air quality and raise funds for the city's public transit system, the plan calls for tolling drivers who drive south of 60th Street as much as $23 dollars they come into the zone, with the exact amount still to be decided by the MTA.

The new tolls will be used to finance MTA borrowing to upgrade the subway, bus and commuter rail systems.

"Congestion pricing will reduce traffic in our crowded downtown, improve air quality and provide critical resources to the MTA," Hochul said in a statement.

"I am proud of the thorough environmental assessment process we conducted, including responding to thousands of comments from community members from across the region.

"With the green light from the federal government, we look forward to moving ahead with the implementation of this program," she added.

The plan however, has been sharply opposed by officials in neighboring state New Jersey, where people bound for Manhattan by car could see costs of commuting skyrocket, according to local media.