The MTA’s Congestion Pricing Saga
Since its initial announcement, the Metropolitan Transportation Authority's plan to charge drivers entering Manhattan's southern district has received considerable attention. Discussions on implementing congestion pricing in Manhattan date back to 2007, when then-Mayor Michael Bloomberg first proposed the idea. While Bloomberg's proposal passed in 2008, an increase in gas prices caused an organic drop in traffic into the district, rendering the legislation unnecessary. Years later, in 2015, Traffic Commissioner Sam Schwartz proposed a similar plan, but the legislation was never passed.
The current legislation originates from Governor Cuomo's 2017 proposal, which successfully passed in March 2019 as part of the state budget. Since the proposal affects certain federal roads, it required approval from the Federal Highway Administration. However, a series of delays, exacerbated by the COVID-19 pandemic, pushed implementation back to 2023, following a lengthy environmental review process.
In its most recent form, congestion pricing would charge motorists driving below 60th Street in Manhattan's Central Business District, excluding FDR Drive and the West Side of Highway 9A. During peak hours, between 5 a.m. and 9 p.m. on weekdays and 9 a.m. and 9 p.m. on weekends, passenger vehicles would be charged a $15 toll once a day. Trucks and buses would be charged $24 and $36, respectively, with each entry. During off-peak hours, toll rates would be reduced by 75%. Additional fees of $1.25 and $2.50 would be charged to taxi and rideshare passengers.
The legislation's primary goals were to reduce traffic congestion and air pollution in Manhattan's business district. Tolling revenue would also support the MTA's 2020-2024 Capital Program, aimed at improving accessibility, maintaining infrastructure, and modernizing the city's public transit system. The plan received strong backing from environmental groups and public transit advocates. Disability rights advocates supported the proposal, as funds generated would be used to make more subway stations ADA-accessible.
Opposition groups criticized the plan as a "money grab" by the MTA, accusing the agency of trying to cover up years of financial mismanagement. Business owners raised concerns that congestion pricing would increase delivery costs, which might be passed on to consumers. Commuters would face significantly higher commute costs, which could pressure employers to reimburse the additional expenses. Residents of outer boroughs and New Jersey felt congestion pricing would burden them without adequate public transit alternatives.
During the required public comment period, the MTA received over 25,000 comments. According to the MTA, 60 percent of the comments expressed support, while 32 percent were opposed. The MTA released a list of over 120 interest groups that requested discounts or exemptions for their stakeholders.
The congestion pricing proposal sparked several legal challenges. Most notably, New Jersey Governor Phil Murphy sued the federal government in July 2023, alleging that the government had allowed the plan to proceed without adequate environmental review. In an amended complaint, the governor further alleged that the plan violated the U.S. Constitution's Interstate Commerce Clause and would impose an undue burden on New Jersey residents. The Mayor of Fort Lee, New Jersey, the United Federation of Teachers, the Staten Island borough president and Lower East Side residents joined or filed further lawsuits against the proposal. Many lawsuits allege environmental concerns, mainly that the toll would shift traffic into their neighborhoods, and they argued that the environmental review failed to account for the impact on small businesses in the district.
Despite the varied reactions and ongoing political and legal controversy surrounding the proposal, the MTA gave its final approval to the plan on March 27, with a tolling start date of June 30. By the end of February, the MTA had already installed 104 of the 110 planned toll readers at the entry points to Manhattan's southern district. The overhead-mounted readers can scan license plates and E-ZPass transponders without causing a slowdown in traffic.
In an eleventh-hour decision, with less than a month left to the planned start date, Governor Hochul unexpectedly announced that the congestion pricing project would be paused indefinitely. Hochul cited the increased cost of living and wanting to avoid additional burdens on working- and middle-class families as the primary reasons behind the decision. Curbed later reported that the governor was concerned about the political repercussions of implementing the program based on polling data indicating the program was unpopular.
Late in June, Judge Lewis J. Liman rejected the central arguments against the congestion pricing plan, concluding that the MTA's environmental review process gave acceptable consideration to the ecological impacts, but the program remained suspended. In July, interest groups filed two new lawsuits in favor of congestion pricing against Governor Hochul. The lawsuits challenged her authority to unilaterally suspend the legislation that passed in the state legislature and was necessary to meet state climate targets. Oral arguments in pro-congestion pricing lawsuits commenced on Friday, with Judge Arthur Engoron denying Governor Hochul’s motion to dismiss.
With congestion pricing off the table for now, city officials are looking for alternatives to fill the $1 billion annual budget gap. Proposals to increase the payroll mobility tax or sell bonds to raise the needed capital fell by the wayside. With ongoing litigation and public pressure, the fate of congestion pricing remains uncertain. How New York City ultimately addresses these challenges will set the tone for how other cities address urban mobility and sustainability.
Photo Caption: New York City gridlock in Times Square
Photo Credit: joiseyshowaa / Wikimedia Commons
