NJ v. U.S. DOT: Cordon Pricing in Manhattan

“On Friday, the state filed a lawsuit against the U.S. Department of Transportation (USDOT) and the Federal Highway Administration (FHWA) to block what it describes as ‘the ill-conceived congestion pricing plan,’” reported Matthew Fazelpoor for NJBIZ, the state's leading business journal. More details have emerged since Planetizen first covered the story.

When the FHWA cleared the controversial pricing project last month, “New Jersey leaders noted they had retained Randy Mastro and Craig Carpenito of law firm King & Spalding and were exploring all legal options,” added Fazelpoor. “And on Friday, the state did indeed take legal action.”

The suit argues that the USDOT and the FHWA violated the National Environmental Protection Act, which requires a full environmental impact review for efforts of this projected impact and scope, as well as the Clean Air Act.

Tolls, not environment, prompts lawsuit

“We believe the feds short-circuited the normal review process,” Democratic Gov. Phil Murphy said in an interview on Good Day New York, reported Jimmy Vielkind for The Wall Street Journal on July 21.

Murphy argued that the new tolls will unfairly target New Jersey drivers, who already pay a $17 toll to use the Lincoln or Holland tunnels into Manhattan. Around 111,000 people drove into Manhattan’s business district from New Jersey on an average fall weekday in 2019, according to the New York Metropolitan Transportation Council, a planning group.

“We can’t fix a broken MTA [Metropolitan Transportation Authority] in New York City on the back of New Jersey commuters,” states Murphy on pg. 2 of the 68-page lawsuit [pdf]. “It’s a huge tax on them, and frankly, it challenges our environment because of all the re-routing of traffic that will take place.”

The current plan allows for a peak-hour toll as high as $23 for drivers who enter the cordon below 60th Street in Manhattan. An alternative plan, posted here July 18, would set the maximum at $15.

“Lisa Daglian, who heads an advisory committee that advocates for MTA riders, said most New Jersey residents who commute to Manhattan come on trains or in buses and many of them then ride the subway,” added Vielkind.

“We strongly condemn this lawsuit for its attempt to halt progress on improving transit, reducing congestion and pollution, and creating a healthier and more sustainable region,” she said.

The road pricing program, scheduled to take effect next year, could mean billions of dollars in new transit funding for the MTA.

Additional coverage in Bloomberg City Lab: “New Jersey Sues Over Congestion Pricing Plan in New York City,” July 21, 2023