NYC congestion pricing set to start as planned Sunday after ruling in final lawsuit

Just days before the nation’s first congestion toll begins in New York City, the pricing plan may have cleared its final hurdle in a ruling by a U.S. district court that heard a state lawsuit of New Jersey for environmental reasons, according to the MTA. But a New Jersey state attorney says not so fast.

While the judge ruled that the Federal Highway Administration (FHWA) will have to intervene, the MTA tells NBC New York that it has the green light to proceed with the start of congestion pricing this weekend, saying the The judge’s questions about the plan do not rise to the level of a court order.

New York’s congestion pricing law will go into effect seconds after midnight on January 5. Under the congestion pricing plan, cars would pay a maximum rate of $9 from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends. During off-peak hours, there would be a 75% discount: $2.25.

New Jersey’s lawsuit was for tens of millions of dollars and predicted environmental damage if traffic worsens across the river.

The judge’s ruling came in a 72-page decision issued Monday night.

“We are satisfied that on virtually every issue, Judge Gordon agreed with the federal court in New York and rejected New Jersey’s claim that the Environmental Assessment approved 18 months ago was deficient,” said the president and CEO of the MTA, Janno Lieber, in a statement. The most important thing is that the decision does not interfere with the scheduled implementation of the program for next Sunday, January 5.”

In the decision, the judge said that because of questions for the federal government, “this matter is returned to the FHWA until January 17, 2025 for FHWA to take action consistent with this Opinion.”

For the state of New Jersey, that’s enough to delay the start of congestion pricing, despite how the MTA is interpreting the ruling.

“We welcome today’s court ruling in the congestion pricing lawsuit. Due to the New Jersey litigation, the judge ordered a remand and therefore the MTA cannot proceed with the implementation of the current congestion pricing proposal on January 5, 2025,” said attorney Randy Mastro, who represents New Jersey.

Mastro said New Jersey remains “firmly opposed” to implementing congestion pricing.

In response to New Jersey’s lawsuit, New York Gov. Kathy Hochul said she offered money to settle it, but no settlement was reached.

“We have made multiple offers to resolve this lawsuit, very generous offers,” Hochul said previously.

After the ruling, Hochul said congestion pricing will begin this weekend as planned.

“Despite the State of New Jersey’s best efforts to attempt to thwart New York’s ability to reduce congestion on our streets while making long-overdue investments in public transportation, our position has prevailed in court in nearly all topics. “This is a huge victory for travelers in both New York and New Jersey,” the New York governor said in a statement.

The MTA has predicted there will be 10% fewer cars and trucks after tolling begins.

MTA executives have promised that billions of dollars raised through congestion pricing will be used to modernize the system across the region.

A week before the New Jersey ruling, a federal judge in New York dismissed a different lawsuit attempting to stop the start of congestion pricing.

Responding to a lawsuit from the United Federation of Teachers, the New York Teamsters Association and Manhattan residents, Judge Lewis Liman issued a 111-page ruling in that case denying a request for a temporary injunction.

“Plaintiffs fail to establish a likelihood of success on the merits of any claim,” the judge wrote in his conclusion.



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