In a move that has sparked heated debate, New York City is inching closer to implementing a contentious congestion tax that could see commuters shelling out thousands of dollars annually.
The plan has been met with staunch opposition, including from New Jersey's Democratic Governor, who has branded the scheme as a swindle for commuters.
On Wednesday, the Metropolitan Transportation Authority (MTA) board cast a decisive 9-1 vote in favor of the congestion pricing, marking the first such initiative in the United States. The decision will now be followed by a 60-day public commentary period, after which the MTA will establish a toll schedule with proposed rates, set to be unveiled at public hearings in February.
The congestion pricing scheme will levy charges on motorists entering Manhattans central business district, spanning from 60th Street to the southernmost point of the financial district. Four tunnels that terminate below 60th Street will be affected, namely the Lincoln and Holland Tunnels from New Jersey, the Hugh L. Carey Tunnel from Brooklyn, and the Queens-Midtown Tunnel from Long Island.
Motorists driving cars will be required to pay a daily fee of $15 to access the central business district. Trucks will be subject to charges ranging from $24 to $36, depending on their size, while motorcycles will incur a $7.50 charge. Taxis will be levied $1.25 per ride, and rideshare services such as Uber and Lyft will face a $2.50 surcharge.
According to NY1, only vehicles equipped with E-ZPasses will be subject to the $15 base fare. Those without E-ZPasses will be charged $22.50 to enter the central business district.
The full rates will be applicable from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends. During off-peak hours, rates will be approximately 75% lower.
However, city officials reserve the right to increase the congestion pricing. As NJ.com pointed out, "The two additions to the fee structure were in the fine print of MTA board action items and include two potential fee increases a 25% higher congestion pricing fee to enter the central business district during Gridlock Alert Days and a potential 10% increase or decrease to the fee for up to one year after implementation."
Drivers earning less than $50,000 annually will be granted 10 free entries per month, after which they will be required to pay half the standard price.
The review board anticipates that the congestion pricing plan will reduce the number of vehicles entering the area by 17%, equating to 153,000 fewer cars in that large portion of Manhattan, as reported by WNBC.
The congestion pricing is projected to generate $15 billion in revenue for the MTA. CNBC reported that "Much of the cash will go toward the MTAs 2020-24 Capital Program. For example, some of the proceeds will finance four new Metro-North stations for communities in the Bronx. The MTA is also speeding up investment in clean bus technology. The agency expects to begin experimenting with hydrogen fuel cell bus technology in 2025."
Kathy Wylde, a member of the Traffic Mobility Review Board and the head of the Partnership for New York City, stated that "Excess traffic is costing the New York City region $20 billion a year."
The congestion pricing plan has not been without its critics. One driver expressed their frustration, saying, "Its insane! What are they, crazy? We already have enough high fees."
Last month, New Jersey Governor Phil Murphy criticized the MTA for planning to "impose an unfair and ill-conceived congestion pricing tolling scheme on New Jersey commuters." He also accused the MTA of "ripping off New Jersey commuters to pay for whatever financial hardships the MTA is facing."
Murphy argued that the congestion tax will "lead to toll shopping, increased congestion in underserved communities, and excessive tolling at New Jersey crossings into Manhattan." He threatened, "We are left with no choice than to continue addressing our concerns through litigation."
In response to the proposed plan, New Jersey launched a lawsuit to prevent the MTA from implementing the tax scheme. Mark Sokolich, the mayor of Fort Lee in New Jersey, filed a federal class-action lawsuit last month to block the congestion pricing. Staten Island has also announced plans to sue the MTA over the proposal.
New York Governor Kathy Hochul acknowledged the potential impact of the plan, but emphasized the need to "deal with the larger picture-protecting and cleaning up our environment, protecting the quality of air, protecting mobility on our streets, and also protecting our financial stability of the MTA, because without that, it all collapses."
New York City Mayor Eric Adams echoed these sentiments, stating, "We dont want to overburden working-class New Yorkers, but those who are just driving for convenience, whatever the price is, they need to pay that price."
Congestion taxes have already been implemented in cities such as Milan, London, Singapore, and Stockholm. The MTA aims to roll out congestion pricing in late spring 2024.
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