Feds greenlight NY's congestion plan as Republicans pledge full court press

The Federal Highway Administration last week handed final formal approval to New York's resurrected congestion pricing program to begin tolling drivers starting Jan. 5.

But the battle over the nation's first central business district toll program may not be over as President-elect Donald Trump and Republicans prepare to take over next year and Democratic opponents, like New Jersey Gov. Phil Murphy, pursue court challenges.

The FHWA sent a Nov. 21 letter to New York and Metropolitan Transportation Authority officials announcing that its original environmental review, completed before the program was paused, remains valid. The agency took the fresh look at the program after New York Gov. Kathy Hochul revamped rates, which will now start at $9 and rise to $15 by 2031. The original plan called for the toll to begin at $15 in June. Revenue will fund the MTA's capital plan.

Hochul in early November announced the program would start on Jan. 5, lifting the brick she'd put on the program in June. The MTA board approved the adjusted program on Nov. 18.

Both Republican and Democratic opponents have promised a full court press to torpedo the toll. President-elect Donald Trump, in a May post on Truth Social, vowed to "TERMINATE Congestion Pricing in my FIRST WEEK back in Office!!" In mid-November, after Hochul revived the program, Trump reiterated his opposition but did not repeat his pledge to kill it.

A hearing for four separate federal lawsuits seeking to block implementation, including one from the state of New Jersey requesting a full environmental impact statement, is set for Dec. 20.

"We're not asking for the moon," New Jersey Gov. Phil Murphy said Nov. 22 during an interview on Bloomberg television. "We've asked the federal judge ... that he force the federal administration to do an environmental impact study and we'll live with the results of that."

A group of five New York Republican lawmakers on Nov. 12 sent a letter to Trump asking him to issue an executive order to end "this absurd congestion pricing cash grab at once." The Biden administration "conspired to allow an abbreviated environmental review in order for the program to skip the normal [environmental] process," the lawmakers said.

The group also sent a letter to Congressional leaders asking them to pass anti-congestion pricing legislation before the end of the year. In 2023, New York Republican Rep. Mike Lawler and New Jersey Democratic Rep. Josh Gottheimer introduced a package of four bills called the "Anti-Congestion Tax Act." The legislation would prohibit federal funds for major MTA projects if the tolls are in place and would create a federal tax credit for drivers who pay the toll.

House Transportation & Infrastructure Chair Rep. Sam Graves, R-Mo., who is hoping to retain his top committee spot next year, said the committee would "consider all options to conduct the necessary oversight of this issue as we move forward.

"President-elect Trump has made it clear that he does not support this congestion pricing scheme, and the rush to institute it before he can take office is a blatantly political move," Graves said in a statement. "Americans across the country, from New York and New Jersey, to Missouri and every other state, are feeling the pain of higher costs, and the results from the recent election show that they are ready for relief."