The Cross-Hudson Battle on Congestion Pricing
New Jersey officials are waging a last-minute campaign to stop New York City from charging a new toll on cars that enter the busiest parts of Manhattan, an interstate spat that could delay or derail the nation’s first system of congestion pricing.
As I reported last week in The Wall Street Journal, U.S. Sen. Bob Menendez and Rep. Josh Gottheimer, both New Jersey Democrats, sent a letter saying there should be more examination of how congestion pricing would affect the New Jersey side of the George Washington Bridge.
New Jersey Gov. Phil Murphy, a Democrat, said he was considering legal options. On Monday, he sent his own 15-page comment letter pushing for a full environmental impact statement, “given the significant public interest, the project’s novelty” and what it saw as deficiencies in the MTA’s review.
“We are not happy,” Murphy recently told reporters.
Members of the Garden State’s congressional delegation have introduced bills to withhold federal mass-transit funding from the city if the system is implemented, saying it unfairly burdens New Jersey commuters. People would be tolled once a day by automated camera systems that scan license plates if they enter Manhattan south of 60th Street. New Jersey officials have lobbied Transportation Secretary Pete Buttigieg over the matter.
The spat could chill a spirit of cooperation between Murphy and New York Gov. Kathy Hochul, a Democrat who supports congestion pricing. The two have worked together to share information about gun trafficking and to tout offshore wind farms in coastal areas. They also jointly control the Port Authority of New York and New Jersey, which operates airports around New York City as well as ship cargo facilities, bridges and tunnels.
New York officials haven’t set the exact congestion tolls, but the charge could be as high as $23 during rush hour, according to the MTA’s environmental review. Drivers just using highways along the Hudson and East Rivers can avoid the fee, and low-income residents of the congestion zone will receive an offsetting tax rebate.
New York’s last governor pushed congestion pricing through the state Legislature in 2019 as part of a larger budget bill. There were objections from legislators in some parts of Queens and Brooklyn that aren’t well-served by mass transit options, as well as Long Island and the city’s northern suburbs. In some instances, the MTA promised additional service improvements to secure support.
New Jersey, though, was written out of the process — hence their current ire. In addition to the lawsuit, Murphy’s team has suggested it could gum up the works at the Port Authority. The state also passed a tax credit to encourage companies to relocate west of the Hudson River rather than making their employees commute. Given changes to commuting patterns prompted by the rise of remote work — which has already had a drastic effect on the MTA’s finances — it could provide an opportunity, Garden State officials say.
Congestion pricing is already delayed: it was supposed to be operational by 2021, but now the optimistic projection is next Spring.
Urban planning advocates hoped New York’s move will spur other American cities to set up congestion pricing, which already exists in London, Stockholm and Singapore. It has the dual purpose of raising money for mass transit while reducing traffic, they say.
“It’s less traffic, less congestion, better air quality,” Janno Lieber, chairman and chief executive of the MTA, said in an interview. “We’re not doing it because we don’t love our neighbors in New Jersey.”
He said both states make unilateral changes within their jurisdictions. “No offense,” Lieber said. “But nobody in New Jersey asked Kathy Hochul’s approval when they just raised tolls on the Garden State Parkway and the Turnpike.”
THE QUESTION: What is the current cash toll for a passenger car to drive over the Hudson River into New York City?
Have an answer? Drop me a line at jimmy.vielkind@gmail.com. Or just write with thoughts, feedback or to say hi.
THE LAST ANSWER: The last time air quality in New York City was as bad as this month (excluding 9/11/2001) was 1966. The Washington Post has a good recap.