Update: NYC Mayor Loses Big on Traffic Fee Plan

Mayor Michael Bloomberg's plan to charge drivers extra tolls to enter Manhattan's most congested neighborhoods earned him invitations to speak at such gatherings as the U.N. climate conference and raised his profile as he considered a presidential run.

But the plan died Monday when Assembly Speaker Sheldon Silver in Albany announced his chamber wouldn't take up the proposal because of strong opposition within the conference dominated by New York City Democrats.

The traffic fee proposal, known as congestion pricing, called for cars to pay $8, and trucks $21, to enter Manhattan south of 60th Street between 6 a.m. and 6 p.m. on weekdays. Opponents argued it was an unfair tax on middle-class commuters who drive to work for lack of mass transit options in their neighborhoods.

U.S. Transportation Secretary Mary Peters had said the administration hoped congestion pricing in New York could serve as a model for other cities nationwide. Charging drivers fees in congested city centers is a concept that has gained popularity around the world but has yet to be tried on a major scale in a large U.S. city.