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Congestion Pricing

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Congestion Pricing in New York City: A Battle Heats Up

Judge’s Ruling Allows Congestion Pricing to Proceed

With just days to go before the nation’s first congestion toll begins in New York City, the pricing plan may have passed its final hurdle in a ruling from a U.S. district court. However, an attorney for the state of New Jersey says not so fast.

Judge’s Decision

On Monday evening, a 72-page decision was issued by the judge, ruling that the Federal Highway Administration (FHWA) must weigh in on the plan. The MTA, however, claims that the judge’s questions do not rise to the level of an injunction, giving them the green light to proceed with the start of congestion pricing this weekend.

Congestion Pricing Plan

New York’s congestion pricing law is set to begin seconds past midnight on January 5th. Under the plan, cars would pay a peak fee of $9 from 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends. Off-peak would be a 75% discount — $2.25.

New Jersey’s Lawsuit

The state of New Jersey filed a lawsuit against the MTA, predicting environmental harm if traffic gets worse on the other side of the river. The lawsuit is seeking tens of millions of dollars in damages.

MTA’s Response

MTA Chair and CEO Janno Lieber said in a statement, "We’re gratified that on virtually every issue, Judge Gordon agreed with the New York federal court and rejected New Jersey’s claim that the Environmental Assessment approved 18 months ago was deficient. Most important, the decision does not interfere with the program’s scheduled implementation this coming Sunday, January 5."

State of New Jersey’s Response

However, attorney Randy Mastro, who represents New Jersey, said, "We welcome the court’s ruling today in the congestion pricing lawsuit. Because of New Jersey’s litigation, the judge has ordered a remand, and the MTA therefore cannot proceed with implementing the current congestion pricing proposal on January 5, 2025." Mastro added that New Jersey remains "firmly opposed" to implementation of congestion pricing.

Governor’s Statement

New York Gov. Kathy Hochul said, "We’ve made multiple offers to settle this lawsuit, very generous offers. Despite the best efforts of the State of New Jersey trying to thwart New York’s ability to reduce congestion on our streets while making long-overdue investments in public transit, our position has prevailed in court on nearly every issue. This is a massive win for commuters in both New York and New Jersey."

Conclusion

The MTA has predicted there would be 10% fewer cars and trucks after the toll begins. The agency has promised that billions of dollars raised by congestion pricing will pay to modernize the system all across the region.

FAQs

Q: What is congestion pricing?
A: Congestion pricing is a system where drivers are charged a fee to enter certain areas of a city, typically during peak hours, to reduce traffic congestion.

Q: When does congestion pricing begin in New York City?
A: Congestion pricing is set to begin seconds past midnight on January 5th.

Q: What is the fee for congestion pricing?
A: The peak fee is $9 from 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends. Off-peak is a 75% discount — $2.25.

Q: What is the purpose of congestion pricing?
A: The purpose of congestion pricing is to reduce traffic congestion and raise funds for public transportation improvements.

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