The federal government has given final approval for the implementation of the Manhattan congestion charge starting January 5th. With the approval process from the New York State government and the federal government, the road to implementing the congestion charge is wide open, but the ongoing legal battle, such as the hearing of the lawsuit opposing the implementation of the congestion charge on the 20th of next month, remains as the final variable.
On the 21st, the Federal Highway Administration (FHA) gave final approval for the Manhattan congestion charge plan, which imposes a base toll of $9 for passenger cars. The FHA announced its approval decision, saying, “The environmental impact assessment for the implementation of the congestion tax has already been conducted, so further review is not necessary.”
With this, all approval procedures from New York City, New York State, and the federal government required to implement the congestion tax on January 5th of next year have been completed.
The Metropolitan Transportation Authority (MTA) plans to hold eight webinars from the 4th to the 19th of next month to promote the newly confirmed congestion tax tolling plan. According to the MTA, the base toll for passenger vehicles entering the south end of 60th Street in Manhattan during daytime hours will be $9 based on EZ-Pass payments from 2025 to 2027 but will increase to $12 starting in 2028 and then to $15 in 2031.
The Manhattan congestion tax was originally scheduled to be implemented on June 30th but was suspended in early June when New York Governor Kathy Houle abruptly suspended implementation, citing the burden on low-income families. After that, Governor Houle announced on the 14th of this month, shortly after the election on November 5th, that he would revive the congestion tax implementation plan and lower the basic toll from the original $15 to $9, and that collection would begin on January 5th of next year.
Governor Houle’s congestion tax implementation plan was quickly confirmed when the MTA approved it on the 18th and the federal government finally signed it on the 21st.However, at least 9 lawsuits opposing the congestion tax implementation are still in progress. Depending on the results of these lawsuits, the path to implementing the congestion tax could be blocked again.
Judge Louis Lehman of the Southern District of New York, who is handling the lawsuit opposing the congestion tax filed by the New York City Teachers’ Union and the Trucking Association of New York (TANY), decided on the 21st to hear oral arguments on December 20th, about 2 weeks before the congestion tax implementation on January 5th of next year. If the court accepts the plaintiff’s request and issues a temporary injunction to temporarily suspend implementation, the path to implementing the congestion tax will be blocked.
Another obstacle could be the result of a lawsuit filed by the New Jersey state government and others. The oral argument for this lawsuit was already held in April, and the court was originally scheduled to make a ruling in early June, but the court decision was postponed when New York Governor Hokule suddenly suspended implementation. After New York Governor Hokule announced the reinstatement of the congestion tax on the 14th, the New Jersey state government submitted a request to the court for a quick ruling.
In a statement released on the 22nd, New Jersey Governor Phil Murphy said, “We will make every legal effort to block the implementation of the unfair congestion tax.” In addition, what measures President-elect Donald Trump will take on the congestion tax after taking office on January 20th of next year is considered a variable.
During the presidential campaign, President-elect Trump declared, “I will abolish the congestion tax within the first week of my presidency.”