This week on Wednesday, New York Governor Kathy Hochul announced an indefinite postponement of the congestion pricing plan in the Manhattan central business district. Officials from New Jersey have applauded this decision.
Originally scheduled to start on June 30, the plan aimed to charge at least $15 for vehicles entering south of 60th Street in Manhattan, with an estimated annual revenue of $1 billion for New York’s subway and bus systems.
To prepare for the implementation of this plan, the Metropolitan Transportation Authority (MTA) had already invested tens of millions of dollars in installing cameras, sensors, license plate readers, and other equipment on city roads.
In a pre-recorded video statement, Governor Hochul stated that she made a “difficult decision that the implementation of the congestion pricing system in the plan might bring too many unforeseen consequences at present.”
She pointed out that the fragility of New York City’s recovery from the pandemic and the economic burden the fee would impose on New Yorkers facing inflation were reasons for not implementing the plan.
It is estimated that over 400,000 New Jersey residents commute to Manhattan daily.
The proposal had faced strong opposition from New Jersey since its inception. The New Jersey state government sued the U.S. Department of Transportation, the Federal Highway Administration, and MTA, alleging that the Federal Highway Administration “failed to adequately consider environmental impacts” when signing the plan and “ignored the significant financial burden on New Jersey residents and the state’s transportation system.”
Governor Murphy praised Governor Hochul’s decision. Murphy said, “I want to thank Governor Hochul for suspending the congestion pricing in the Manhattan central business district,” adding, “We completely agree on the view that Manhattan’s success is intertwined with the prosperity of the entire tri-state region.” “While we may have differences with our New York colleagues on the issue of congestion pricing, we always share a common vision of developing our regional economy, investing in infrastructure, protecting the environment, and creating high-paying jobs on both sides of the Hudson River.”
Josh Gottheimer, Congressman for New Jersey’s 5th District, said, “After 5 years of fighting, New York seems to have done the right thing for hardworking New Jersey families by abandoning their outrageous congestion tax.”
Fort Lee, New Jersey is the gateway to the George Washington Bridge. Local officials in Fort Lee had joined a lawsuit seeking to stop congestion pricing, claiming it would lead to more traffic and pollution. Mayor Mark Sokolich stated on a news program on Wednesday that the postponement of the plan was “a significant step in the right direction.”