NEWARK, NJ — A federal judge has ruled against the Metropolitan Transportation Authority’s (MTA) congestion pricing proposal, delaying its implementation after determining that the Federal Highway Administration (FHWA) acted improperly in approving the plan.
The decision, announced Monday, came in response to a lawsuit filed by New Jersey, which challenged the proposed tolling scheme for vehicles entering Manhattan’s central business district. The tolls were set to take effect on January 5, 2025, but the court’s ruling requires the plan to undergo further review.
In the ruling, the judge found that the FHWA acted “arbitrarily and capriciously,” citing a lack of rational explanation for mitigation commitments and significant changes to New York’s tolling scheme after receiving federal approval. Attorney for the State of New Jersey Randy Mastro welcomed the decision, stating, “The MTA cannot proceed with implementing the current congestion pricing proposal.”
New Jersey officials have strongly opposed the plan, which would impose tolls starting at $9, increasing to as much as $15, on vehicles entering downtown Manhattan. Mastro criticized the timing of the proposal, saying, “There could not be a worse time to impose a new toll on individuals traveling into downtown Manhattan for work, school, or leisure.”
The ruling sends the proposal back for further consideration, marking a significant setback for the MTA’s plan to reduce traffic congestion and generate revenue for public transit improvements.