New York ? Lawmakers rejected a proposal on Monday to charge Manhattan motorists an extra fee to drive in the city, a plan advocates hoped would reduce traffic and curb pollution.

Assembly Speaker Sheldon Silver announced the decision after a survey of Democratic Assembly members in a private conference. The decision comes after days of closed-door negotiations, and means the city will forfeit $354 million in federal funding for trying to kick-start the plan.

The concept aimed to cut traffic and pollution by forcing more commuters onto mass transit. It would have charged most drivers $8 to drive below 60th Street between 6 a.m. and 6 p.m. Monday through Friday. Truckers would have paid $21.