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Congestion pricing ruling in New Jersey will not delay start date, MTA CEO says

New York and New Jersey at odds after latest congestion pricing ruling
New York and New Jersey at odds after latest congestion pricing ruling 02:55

NEW YORK -- New York City congestion pricing will start this weekend as planned, MTA Chair and CEO Janno Lieber declared Monday, despite a New Jersey judge earlier in the day partially siding with some who sought to delay it.

In his opinion, Federal Judge Leo Gordon granted some motions in the State of New Jersey's lawsuit against the MTA's Manhattan tolling plan, but denied others.

In his more than 70-page court document, the judge said regulators need to specify how much money communities in New Jersey will get to mitigate pollution from a possible increase in truck traffic.

But despite that, there appears to be no consensus on the merits of congestion pricing and no one seems to agree on what Gordon actually ruled as far as when or if it can begin.

MTA, New York declare victory

Lieber said the judge did not stop the agency from charging drivers $9 to enter Manhattan below 60th Street, starting this Sunday.

"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, Jan. 5. On the two remaining issues where the Judge requested that the Federal Highway Administration (FHWA) provide additional data -- information that was not yet before the Court in this proceeding -- we're confident that the subsequent Federal actions, including the approval of the revised, reduced toll rates, did put those issues to rest," Lieber said in a statement.

New York Gov. Kathy Hochul came away with the same conclusion, issuing a statement that said, in part, "Now that the judge has issued his ruling, the program will move forward this weekend."

"This is shutting it down. We won," N.J. attorney says

The attorneys representing New Jersey contend the MTA can no longer implement congestion pricing as planned.

"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 Jan. 5, 2025," attorney Randy Mastro's statement said. "The judge determined that the Federal Highway Administration acted arbitrarily and capriciously in approving the MTA's plan, that the FHWA's decision provided no rational explanation of mitigation commitments, that New York changed its tolling scheme significantly after it gained federal approval, and that more consideration is needed before the current congestion pricing proposal may take effect."

"This is shutting it down. We won," added Bruce Nagel, who represents Fort Lee Mayor Mark Sokolich, one of the numerous plaintiffs in this lawsuit accusing New York and the federal government of botching the environmental review. "I don't think congestion pricing will take effect ever. I think the methodology is so flawed, it will take 10 years to straighten it out."

Rep. Josh Gottheimer, a vocal opponent of congestion pricing, said in a statement New York was totally jumping the gun in its interpretation of the judge's opinion.

"Let's be clear, no matter how they spin it, this isn't the outcome New York was hoping for from the judge. After speaking with New Jersey's legal team, the judge's decision to send the case back to the states is an acknowledgment of what many of us have been saying for years: New York has completely failed to address and mitigate the cancer-causing pollution and traffic the Congestion Tax will wreak on Jersey families," Gottheimer said. "The MTA clearly doesn't care about the health effects and environmental impact the Congestion Tax will have on Jersey children and families. They are just so desperate for the cash to pay for their woeful mismanagement that they're willing to do anything -- even if it means harming Jersey families.

"New York and the MTA can try and flip the bird to a federal judge, but they won't be able to get out of one truth: they can't move forward without addressing the serious health and environmental impacts."

John Reichman, an attorney representing New Jersey residents who support congestion pricing, said of the argument that the judge's opinion shuts down congestion pricing, "It's simply wrong. In order for the program to be shut down, the court has to issue an injunction. It has to issue an order that says exactly that, that the program can't go forward. The decision doesn't say that, or even imply it.

"I think the bottom line is it gives the MTA and the city that go ahead to start congestion pricing in the beginning of the year," Reichman added. "The court had a couple of issues with respect to the way things were handled in Bergen County in terms of mitigation, in terms of looking at alternatives now that the governor reduced the initial toll. But the bottom line is the program can go ahead."

Nagel, however, sees it differently.

"The judge found that there was no allocation of mitigation money, $155 million to New York, $0 to New Jersey. The methodology was flawed, and the judge shut it down," Nagel said.  

New York judges refused to delay congestion pricing

Last week, two New York federal judges refused to delay congestion pricing. Plaintiffs, including Rockland County, the United Federation of Teachers, the U.S. Trucking Association of New York and a group called New Yorkers Against Congestion Pricing Tax, filed lawsuits challenging the plan and were seeking a similar injunction.

Any delay could potentially be the end of New York congestion pricing altogether. President-elect Donald Trump, who takes office Jan. 20, has said he would like to kill the plan. Rep. Mike Lawler, who represents some of the city's northern suburbs, also promised to push legislation denying the MTA federal funds if the tolls are in effect.

Congestion pricing plan details

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The congestion pricing tolling zone in Manhattan. CBS News New York

Congestion pricing cleared a key legislative hurdle in November. It was paused earlier in the year, then "un-paused" after the election

Hochul revised the plan to included a less expensive toll, which was initially $15. Under the new plan, the daytime toll with an E-ZPass will now cost $9 from 5 a.m. to 9 p.m. Monday through Friday for the next two years. In 2028, the MTA could then raise it up to $12. Tolls will be 75% lower during off-peak hours in a bid to encourage more overnight deliveries. 

The congestion prizing zone covers Manhattan south of 60th Street and includes the Lincoln, Holland, Hugh L. Carey and Queens Midtown tunnels, along with the Williamsburg, Manhattan, Brooklyn and Queensboro bridges. 

There are some exemptions, including for emergency and government vehicles, school and commuter buses, and for certain low-income drivers and people with medical conditions that keep them from utilizing mass transit.

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