Arguments begin in cases to stop MTA's congestion pricing plan (2024)

Congestion pricing is set to take effect one minute after midnight on June 30, but there is a last-ditch effort to stop the first-in-the-nation tax on traffic taking place in a federal courthouse in Manhattan.

A judge on Friday heard oral arguments from three groups of plaintiffs whose lawsuits aiming to stop the MTA from rolling out its plan have been consolidated.

What You Need To Know

  • A judge on Friday heard oral arguments from three groups of plaintiffs whose lawsuits aiming to stop the MTA from rolling out its congestion pricing plan have been consolidated

  • The lawsuits argue the plan lacks a comprehensive environmental review and could hurt low-income New Yorkers

  • The MTA and other agencies defending the planargue that it will mean a greener New York, cleaner air and less traffic

The lawsuits argue the plan lacks a comprehensive environmental review and could hurt low-income New Yorkers.

Congestion pricing is a policy that charges drivers a fee for entering certain designated zones within a city, typically during stated or peak hours.The MTA's plan will impose a $15 base fare for cars with E-ZPass tags entering Manhattan south of 60th Street.

One case opposing the plan was brought by a group called New Yorkers Against Congestion Pricing, which represents city residents, as well as some moderate to conservative city politicians from both parties. Another was filed by two residents of Battery Park City in Lower Manhattan.

“Right now, there hasn’t been any mitigation on the economics or the environmental impact,” Susan Lee, with New Yorkers Against Congestion Pricing, said.

In its environmental assessment, the MTA argues it plans to spend $155 million for mitigation over five years.

The New Yorkers Against Congestion pricing suit also argues that state procedural law requires the MTA to study the economic impacts, and claims the process should have been done with the adopted tolling plan, which is now under reevaluation by the feds.

The MTA’s lawyers say the tolling structure is within the range of the seven scenarios already studied, and the reevaluation won’t show any deviation.

A third case was brought by United Federation of Teachers president Michael Mulgrew and Republican Staten Island Borough President Vito Fossella.

They argue that the MTA’s plan required a greater level of study by the federal government than it received when federal agencies approved it. They also cite a study the MTA carried out that showed traffic and pollution would worsen around Manhattan, including in the South Bronx, Staten Island and parts of New Jersey.

One of the plaintiffs in the case, Battery Park City resident Elizabeth Chan, told NY1 she believes the plan must be stopped.

“The bulk of our argument is that the MTA decided to push through this MTA congestion plan without the full process of the National Environmental Policy Act, which means that they did not go through all of the required steps that a program of this nature should have gone through,” Chan said. “The effects [on] people that live and are residents in Lower Manhattan are going to be profound.”

Defending congestion pricing in these lawsuits are the MTA, the New York State Department of Transportation and the federal agencies that ultimately gave New York the green light to pursue the plan.

Their argument is that the plan will mean a greener New York, cleaner air and less traffic.

MTA Chair and CEO Janno Lieber spoke to reporters about the cases, arguing that congestion pricing has already undergone a rigorous study spanning 4,000 pages — and should go into effect.

“The issue is, was a 4,000-page, four-year study sufficient? We think it is. The federal government gave us an A+. That’s why we’re confident going into this,” Lieber said.

The MTA has “all the infrastructure ready to go,” he added.

The lawsuits being argued are not the only legal challenges congestion pricing is facing. A federal lawsuit brought by officials in New Jersey against the federal government also makes the case that more study was needed about the plan’s effects.

Meanwhile, the MTA has motioned to get the Mulgrew and New Yorkers Against Congestion Pricing cases dismissed, claiming they were filed passed the statute of limitations.

The court has not yet issued decisions in any of the cases.

Do you have a congestion pricing question? Submit it to congestionpricing@charter.com. We have started answering some of your questions here.

Arguments begin in cases to stop MTA's congestion pricing plan (2024)

FAQs

What are the disadvantages of congestion pricing? ›

Critics say it leads to economic burdens faced by the communities that abut areas of congested traffic. Another criticism of congestion pricing is that it may harm low-income users more than other demographic groups, just as regressive tax systems do.

Does congestion pricing really work? ›

While New York would have been the first American city to implement such a charge, cities around the world — from Singapore to Stockholm — have been putting a price on congestion for decades, and the evidence from abroad is clear: Congestion pricing works.

What is the lawsuit against congestion pricing? ›

The lawsuit, filed in the Southern District of New York on May 30, argues that the congestion pricing policy unfairly targets trucking and logistics companies, which are charged far higher rates than passenger vehicles.

How will NYC enforce congestion pricing? ›

Drivers with an E-ZPass will automatically be charged a fee upon entering the Central Business District. Those who do not own a pass will be mailed a bill to the address of the registered vehicle.

What are the negative effects of congestion charge? ›

High levels of motorised traffic in such a small area have significant negative impacts on those who work, visit and live in central London; increasing costs for businesses, slowing down essential journeys and negatively impacting air quality.

Who benefits from congestion pricing? ›

NRDC will continue working with groups to bring back congestion pricing, which can benefit low-income residents and workers. Costly and polluting vehicle traffic will continue, and public transit will crater without congestion pricing.

Who is exempt from NYC congestion pricing? ›

School buses contracted with the NYC Department of Education, commuter vans licensed with the NYC Taxi and Limousine Commission, and buses providing scheduled commuter services open to the public are exempt from the Congestion Relief Zone toll.

What are the positives of Congestion Charge? ›

Benefits of congestion pricing

Adding buses and reducing subway delays saves commuters time. Many low-income people earn hourly wages, and other workers have to pay for child care or elder care during their prolonged commutes. Saving time means saving money.

Why is congestion bad for the economy? ›

If traffic isn't managed effectively, congestion on our streets can lead to stalled growth and productivity, and worse still, toxic air and reduced quality of life. The cost will continue to rise if we do nothing. It is estimated that congestion will cost the economy £307 billion between 2013 to 20302.

What has been an unexpected benefit of the congestion charge? ›

Congestion Fees Are Effective at Reducing Traffic

In many cities that have implemented congestion pricing, the effect on traffic volume has been dramatic. In Orange County, California, the tactic doubled vehicle throughput while increasing speed in free lanes three- to fourfold.

Where has congestion pricing been successful? ›

Singapore was the first country to introduce congestion pricing on its urban roads in 1975, and was refined in 1998. Since then, it has been implemented in cities such as London, Stockholm, Milan, and Gothenburg.

How effective is the congestion charge in reducing demand? ›

On introduction, the world-leading Congestion Charge: Limited traffic entering the zone by 18 per cent during weekday charging hours. Reduced congestion by 30 per cent. Boosted bus travel in central London by 33 per cent.

Are electric vehicles exempt from congestion pricing? ›

Public-sector employees (teachers, police, firefighters, transit workers, etc.), those who live in the so-called CBD, utility companies, those with medical appointments in the area and those who drive electric vehicles had all been hoping to get be granted an exemption. They didn't get one.

Who started congestion pricing NYC? ›

A congestion pricing scheme was proposed in 2007 by Mayor Michael Bloomberg as a component of PlaNYC, his strategic plan for the city.

Who is exempt from congestion charges? ›

All alternatively-fuelled vehicles used to be exempt from the Congestion Charge but, since 25 October 2021, only zero-emission vehicles - such as EVs and hydrogen fuel cell vehicles - have been exempt from the Congestion Charge. From 25 December 2025, however, even drivers of zero-emission cars will be required to pay.

Does congestion pricing hurt the poor? ›

The benefits of congestion pricing may not be distributed equally among all users. High-income users are more likely to remain on the highway, pay the congestion fee, and benefit from a faster trip. Low-income users may be worse off if they choose other less-expensive times, routes, or modes.

How does congestion pricing affect the environment? ›

Congestion pricing can improve the environment in several ways. First, it reduces vehicle miles traveled (VMT) and thereby reduces fuel consumed and pollutant emissions. Second, it reduces stop-and-go traffic, reducing fuel consumed and emissions generated by accelerations and decelerations.

Why is congestion a market failure? ›

Traffic congestion is an example of market failure that incorporates both non-excludability and externality. Public roads are common resources that are available for the entire population's use (non-excludable), and act as a complement to cars (the more roads there are, the more useful cars become).

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