New Jersey Declares War on New York City Over Congestion Pricing

Robert Walker

New Jersey is already one of the most expensive states to live in, but New York City officials are making life in the Garden State even more expensive for many. The city has announced a congestion tax, a tax shouldered mostly by New Jerseyans who work commute each day to New York City.

State officials issued harsh words for the Governor of New York, Kathy Hochul, and New York City Mayor Eric Adams.

Murphy, at a public appearance in Fort Lee, said the lawsuit against the city’s new tax gave him ‘zero joy’, adding that he and Hochul have a good working relationship outside of the congestion tax issue.


The congestion tax amounts to $23 per day.

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,” said Governor Murphy. “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.”

In a legal battle, a lawsuit has been filed against the U.S. Department of Transportation, alleging a violation of the National Environmental Protection Act and the Clean Air Act in connection with the Congestion Tax plan. According to the lawsuit, the Department failed to conduct a comprehensive environmental impact review, as mandated by the National Environmental Protection Act, for projects like the Congestion Tax plan.

New York and the Metropolitan Transportation Authority (MTA) have acknowledged that the implementation of the Congestion Tax will have adverse environmental consequences.

The plan is expected to lead to a shift of more cars and trucks to Northern New Jersey and areas just outside the tolling zone, which could disproportionately affect lower-income families.

“The Garden State is not New York’s piggy bank. We are not the MTA’s ATM,” said Congressman Bill Pascrell. “New Jersey has been our region’s pack mule for a long time. Enough is enough. Governor Murphy’s leadership is indispensable. New Jersey’s state and federal leaders are united in telling New York their scheme is more garbage than the old Staten Island landfill. I look forward to using every legal tool to give Garden Staters a fair shake.”

In particular, regions such as the Bronx, Staten Island, Nassau County, and Bergen County will experience an increase in traffic, pollutants, and mobile air toxins until 2045.

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The anticipated environmental impact includes rises in particulate matter, nitrogen oxide, carbon monoxide, and carcinogens like formaldehyde in Bergen County. The increased traffic flow might also result in more trucks passing through Fort Lee, posing potential challenges for the region.

While the MTA plans to allocate $130 million from tolling revenues to address the negative environmental effects of the Congestion Tax on Bronx families and parts of the outer boroughs, there is no provision for funding to be extended to New Jersey under the MTA’s proposal. The MTA’s proposed solutions include installing new air filtration units near schools, enhancing vegetation, and allocating $25 million for an asthma treatment program, highlighting their acknowledgment of environmental concerns.

“I am pleased that Governor Murphy signed this bill to turn the tables in the fight against New York State’s harsh treatment of New Jersey taxpayers,” said Senator Jon Bramnick. “For too long, out-of-state politicians have taken advantage of employees who live here but work across state lines. This law is a much needed first step to end the current tax imbalance and put money back into the pockets of our residents.”

The lawsuit underscores the importance of conducting thorough environmental impact assessments for significant projects like the Congestion Tax plan. The legal battle will determine the extent of the Department of Transportation’s obligations under environmental protection laws and the potential implications for the plan’s implementation.

“Today’s a huge day in the fight against New York’s commuter crushing $23/day Congestion Tax. If the MTA gets its way, trucks will be backed up here in North Jersey, billowing cancer-causing pollution into the lungs of our children. I want to thank our Governor for punching back at a state that decided to use Jersey as their piggy bank to solve their years of criminal mismanagement at the MTA,” said Congressman Josh Gottheimer (NJ-5). “I don’t know how the MTA Chairman looks at himself in the mirror. He should come to Fort Lee and look Mayor Sokolich in the eye and tell him why it’s okay to give cancer to the children here. I’ve been speaking with mayors from North Jersey in my district — and my bet is he can expect even more lawsuits. We just don’t take a punch in Jersey, we punch back.”

Some skeptics on social media did not believe the effort was pure and genuine, suspecting that tax-hungry New Jersey Democrats are just upset that they’re not getting any of the new tax revenue for themselves.

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