A federal agency approved the revised congestion pricing plan recently introduced by New York officials, with the controversial tolling plan set to start Jan. 5, 2025.

As NJBIZ has reported, New York resuscitated the new plan following an indefinite pause in June that came shortly before the 2024 election. Congestion pricing sets the daytime toll at $9 for automobiles to enter the Central Business District, south of 60th Street in Manhattan. Marking a reduced rate from the original $15 in the short term, the MTA board approved a six-year phase-in for the toll during its Nov. 18 meeting.

That means the first rates – including $9 for automobiles during peak periods and $2.25 overnight – will come in at 60% of the initially approved rates in 2025, 2026 and 2027.

The MTA says all other toll rates, such as for trucks, buses and motorcycles, as well as crossing credits, will also charge 60% of the initially approved rates. Then, from 2028 to 2030, the automobile toll ticks up to $12 during peak times and $3 overnight.

In 2031, the toll jumps to the originally planned $15 – or “full undiscounted rate,” as New York officials frame it.

Randy Mastro, the attorney representing New Jersey in its congestion pricing lawsuit, released a Nov. 20 statement blasting the MTA.

“Under Janno Lieber, the MTA is a mismanaged mess – plagued by $700 million in lost revenue due to fare evasion, cost overruns, and a loss of public confidence in the agency’s ability to function,” said Mastro. “Instead of getting his own fiscal house in order, Mr. Lieber is trying to balance the MTA’s books through an unfair and unpopular fee on hardworking New Jersey commuters that has been poorly designed and insufficiently thought through from the beginning.”

‘Game on’

U.S. Rep. Josh Gottheimer, D-5th District held a Nov. 19 press conference with officials pledging to continue fighting the toll. The 2025 gubernatorial candidate is a longtime opponent of congestion pricing and critic of the MTA.

“Let me say this to all of those hardworking, middle-class families who are struggling to make ends meet: we stopped the Congestion Tax once, and we’ll stop it again. Game on. In a time of inflation, New York’s attempt to whack Jersey families with another tax is utterly absurd,” said Gottheimer. “Together, like we did before, with leaders from across Jersey and New York, including Governor Murphy, small business owners, the men and women of labor, and countless others from both sides of the Hudson, we will fight the Congestion Tax tooth and nail – until Governor Hochul does the right thing.”

Gottheimer sent a letter to the U.S. Department of Transportation and the Federal Highway Administration. The correspondence urged them to reevaluate the new plan, including with a full comment period, to review its impact on patterns and pollution.

“The Department of Transportation should not rush a plan of this magnitude through without any feedback from people on how this new tax will actually affect them and communities in the tri-state area,” said Gottheimer.

Administration’s OK

However, the FHWA approved the new plan Nov. 21, determining the effects are consistent with those disclosed in the original environmental analysis.

“FHWA concludes that the Re-Evaluation 2 confirms that the phase-in of the adopted toll structure and impacts associated with it was analyzed and mitigated accordingly,” the FHWA wrote to the project sponsors – the MTA, New York State Department of Transportation and New York City Department of Transportation. “Thus, FHWA finds that no additional environmental analysis is warranted. The conclusions in the Final Environmental Assessment and Finding of No Significant Impact remains valid.”

“We are pleased to have received formal approval from the Federal Highway Administration for the phase-in feature of the Central Business District Tolling Program, and in compliance with federal law and regulations, New York State DOT, New York City DOT, TBTA, and the federal government have all signed the Value Pricing Pilot Program Agreement,” said MTA Bridges and Tunnels/Triborough Bridge and Tunnel Authority (TBTA) President Catherine Sheridan in a Nov. 22 statement.

NJ’s fight continues

Following those developments, Gov. Phil Murphy pledged the state would keep fighting.

Despite today’s action by @USDOT, New Jersey’s fight against congestion pricing will continue.

We stand resolutely against a tolling scheme that will unfairly burden our commuters and will do everything we can to fight this unfair and unpopular plan in the courts. pic.twitter.com/Hb0VQIDGq2

— Governor Phil Murphy (@GovMurphy) November 22, 2024

“Despite today’s action by the U.S. Department of Transportation, New Jersey’s fight against congestion pricing will continue,” said Murphy on Nov. 22. “We stand resolutely against a tolling scheme that will unfairly burden our commuters. Since the inception of this plan, New York and Washington have not engaged New Jersey in any meaningful way. We will continue to do everything we can to fight this unfair and unpopular plan in the courts.”

Meanwhile, the MTA announced plans to host a series of public webinars. More information about the facts and features of the “Congestion Relief Zone” is available here.