The city council passed the vote by 30 to 20 late Monday, paving the way for the proposal to be put to state lawmakers, who have in the past expressed reservations about the traffic charge.

If the proposal is approved by next Tuesday, the state will be eligible for more than 350 million dollars in federal funding to improve mass transit.

Congestion charging was first put forward by Mayor Michael Bloomberg last year in a bid to reduce gridlock in the city and improve air quality.

"I am increasingly confident that state leaders will do what's right for New York City's future," Bloomberg said after the vote.

"If they do, commuters in our city will be able to benefit immediately from mass transit improvements that you will see literally within months."

Bloomberg's plan has met with resistance among state lawmakers, who last year established a commission to study the congestion charge and look into other ways to reduce traffic on the city's bustling streets.

If introduced, the plan would see car owners paying eight dollars to drive into parts of Manhattan on week days, while trucks would be subject to a 21-dollar charge.

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