New Jersey Gov. Phil Murphy has filed a lawsuit in federal court against the U.S. Department of Transportation and the Federal Highway Administration (FHWA) to block New York City’s congestion pricing plan.
Proposed by the Metropolitan Transportation Authority, the city and state agencies, the plan could impose a toll of up to $23 on drivers entering Manhattan below 60th Street.
Officials are looking to start the program as soon as the spring of 2024, which they say would improve the air quality and provide more funding for public transportation.
The plan has received the greenlight from the FHWA, a division of the U.S. Department of Transportation and crews have already begun working to put up cameras and license plate readers so drivers can be charged.
Filed in the U.S. District Court for the District of New Jersey, the lawsuit argues that the DOT and FHWA violated the National Environmental Protection Act, which requires a full environmental impact review for projects of this potential impact and scope, as well as the Clean Air Act.
Gov. Murphy has been a staunch opponent of the plan since it was first announced by the MTA.
In a July 21 press release, the governor stated, “After refusing to conduct a full environmental review of the MTA’s poorly designed tolling program, the FHWA has unlawfully fast-tracked the agency’s attempt to line its own coffers at the expense of New Jersey families.
“The costs of standing idly by while the MTA uses New Jersey residents to help balance its budget sheets are more than economic. At the MTA’s own admission, its tolling program would divert traffic and shift pollution to many vulnerable New Jersey communities, impacting air quality while offering nothing to mitigate such considerable harm. Today we stand as a unified front against this reckless scheme and reaffirm our commitment to combat the unjust taxation of our hardworking residents by other states.”
U.S. Sen. Bob Menendez echoed those sentiments.
“As the senior senator of New Jersey, I have made it abundantly clear that it’s unacceptable for New York to try balancing its budget on the backs of New Jersey commuters. Their proposed congestion tax scheme is nothing more than a shakedown and must be defeated.
“Today, I am proud to stand with Governor Murphy, as well as other federal, state, and local leaders, as his administration takes legal actions to protect New Jerseyans who travel into New York every day for work.”
As part of his efforts to combat, what Gov. Murphy describes as the unfair taxation and discriminatory treatment of New Jerseyans, he signed legislation to help ensure New Jersey taxpayer dollars stay in the state and go toward programs and services that benefit New Jerseyans.
The July 21 press release states, “The bill will bring our tax code in line with New York’s and allows New Jersey to tax remote employees who live out of state but work at New Jersey companies – if that state has a similar tax rule.”
In addition, the legislation provides tax credits for New Jersey residents who “dispute aggressive tax policies imposed on them by other states. If New Jerseyans take this issue up with another state’s tax authority and receive a tax refund for work they did in New Jersey, the State of New Jersey will provide a tax credit.”
The bill also creates a $35 million grant program to encourage companies that primarily operate outside the state to assign their employees that live in New Jersey to open offices in N.J.