By: Peter Babinsky

New York City officials are weighing a controversial proposal that could dramatically reshape parking across the five boroughs: eliminating many of the city’s remaining free on-street parking spaces and replacing them with paid meters as officials scramble to address a massive budget shortfall.

The administration of Mayor Zohran Mamdani is considering the move while confronting a projected $5.4 billion budget gap, according to reporting by the New York Post. The potential policy change would expand the city’s metered parking system to areas that currently allow drivers to park without paying.

The idea surfaced publicly after First Deputy Mayor Dean Fuleihan acknowledged that the city is reviewing whether converting free parking spaces to metered ones — or implementing variable “dynamic pricing” depending on demand — could help generate additional revenue. Speaking at a policy event last week, Fuleihan said the proposal should at least be part of the broader conversation about how to stabilize the city’s finances, as the New York Post reported.

Still, Fuleihan conceded that expanding parking meters alone would not come close to closing the city’s multibillion-dollar budget hole. Even if implemented broadly, he suggested, the measure would represent only a partial solution to the city’s fiscal challenges, according to the New York Post.

Data cited in the report suggests the potential revenue could still be significant. A study by the think tank Center for an Urban Future estimated that dramatically increasing the number of metered spaces could generate as much as $1.3 billion annually for the city. As the New York Post reported, the analysis suggested roughly 750,000 additional parking spots would need to be converted to metered spaces to reach that figure.

Currently, only about a quarter of New York City’s more than 3 million curbside parking spots require payment at a meter. That translates to roughly 800,000 spaces with meters today, leaving the majority of street parking free of charge, according to the figures cited by the New York Post.

Supporters of expanded metering often argue that charging for curbside parking can reduce congestion by encouraging drivers to move their cars more frequently and discouraging long-term parking in high-demand areas. Some urban planners also say pricing systems that adjust based on demand could improve turnover and make it easier for drivers to find available spots.

But the possibility of eliminating free parking has already triggered pushback from residents and local politicians, particularly from neighborhoods outside Manhattan where many households rely on cars to commute or run businesses.

Several critics interviewed by the New York Post argued the proposal would disproportionately burden working- and middle-class residents in the outer boroughs, where public transit access can be more limited than in Manhattan or parts of Brooklyn.

Local business owners also voiced frustration. One Brooklyn extermination company manager told the New York Post the plan appeared to be a “money grab,” arguing that the city is searching for new revenue sources to fund expensive policy promises.