'It's insane!' NYC to impose controversial congestion tax costing commuters thousands, top Democrat calls plan a rip-off

New York City has come one step closer to imposing a controversial congestion tax that would cost commuters thousands of dollars. Many have already voiced strong opposition to the congestion pricing plan, including the Democrat governor of New Jersey, who called the plan a rip-off for commuters.

On Wednesday, the Metropolitan Transportation Authority board overwhelmingly voted 9-1 to approve the congestion pricing — the first of its kind in the United States. There will now be a 60-day public comment period; then the MTA will finalize a toll schedule with proposed rates before public hearings in February.

The congestion pricing would charge motorists entering Manhattan’s central business district – 60th Street and everything south to the tip of the financial district. However, there are four different tunnels that land below 60th Street: 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 have to pay $15 a day to enter the central business district. Trucks would be charged $24 to $36, depending on size. Motorcycles would be charged $7.50. Taxis would be charged $1.25 per ride, while rideshare services like Uber and Lyft would be hit with a $2.50 surcharge.

NY1 reported, "A closer look at the plan reveals that only cars with E-ZPasses will see the $15 base fare. Those without E-ZPasses will pay $22.50 to drive into the central business district."

Full rates are in effect from 5 a.m. until 9 p.m. on weekdays and 9 a.m. until 9 p.m. on the weekends. During the off-peak times, rates would be about 75% less.

However, New York City officials could increase the congestion pricing.

NJ.com noted, "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 who earn less than $50,000 a year will receive 10 free entries per month, after which they’ll have to pay half price.

According to WNBC, "The review board said that implementing their congestion pricing plan is expected to reduce the number of vehicles entering the area by 17%. That would equate to 153,000 fewer cars in that large portion of Manhattan."

The congestion pricing is estimated to bring in $15 billion in revenue to the MTA.

"Much of the cash will go toward the MTA’s 2020-24 Capital Program. For example, some of the proceeds will finance four new Metro-North stations for communities in the Bronx," CNBC reported. "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."

"Excess traffic is costing the New York City region $20 billion a year," said Kathy Wylde – a member of the Traffic Mobility Review Board and the head of the Partnership for New York City.

There have been many outspoken critics of the congestion pricing plan.

A driver said, "It’s insane! What are they, crazy? We already have enough high fees."

Last month, New Jersey Gov. Phil Murphy. said the MTA will "impose an unfair and ill-conceived congestion pricing tolling scheme on New Jersey commuters." He also said the congestion tax would be "ripping off New Jersey commuters to pay for whatever financial hardships the MTA is facing."

“Despite our interconnected and interdependent regional economy and transportation system, New York officials did not meaningfully consult with us from the outset and instead treated New Jerseyans as a convenient way to fill an MTA budget hole," Murphy stated.

Murphy said he supports congestion pricing, as long as it is "structured in a way that is fair to all sides," but added that this "plan is neither fair nor equitable."

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."

The N.J. governor threatened, "We are left with no choice than to continue addressing our concerns through litigation."

New Jersey launched a lawsuit to try to stop the MTA from enacting the tax plan.

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 previously said it would also sue the MTA over the proposal.

New York Gov. Kathy Hochul said, "I know there's going to be an impact, but we have to also 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 said on Thursday, "We don’t 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 wants to implement congestion pricing in late spring 2024.

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