🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

New Jersey sues to block New York traffic congestion plan

Published 07/21/2023, 10:08 AM
Updated 07/21/2023, 03:31 PM
© Reuters. FILE PHOTO: Traffic travels on First Avenue in Manhattan, New York City, New York, U.S., April 22, 2021. REUTERS/Andrew Kelly/File Photo

By David Shepardson

(Reuters) -New Jersey sued the Biden administration on Friday seeking to block New York City's plan to impose tolls on vehicles in Manhattan to fight congestion and pay for mass transit, saying it was unfair to residents of the neighboring state.

The city aims as early as next year to charge a daily toll of up to $23 on vehicles in central Manhattan between 60th Street in Midtown and Battery Park on the southern tip.

In its lawsuit in U.S. District Court in Newark, New Jersey said the federal highway administration's environmental review of the plan was inadequate. The body also ignored the financial and environmental burdens on New Jersey residents, it said.

Tens of thousands of drivers commute from New Jersey to Manhattan for work.

New Jersey said it would suffer because some drivers would reroute into the state to avoid the toll and it would not receive money from New Yorkers who enter New Jersey.

"New Jersey will bear much of the burden of this congestion pricing scheme—in terms of environmental, financial, and human impacts—but receive none of its benefits," the lawsuit said.

New York City, which has the most congested traffic of any U.S. city, would become the first major city in the U.S. to follow London, which implemented a similar charge in 2003.

In 2022, New York said the charge would cut traffic, improve air quality and increase transit use by 1% to 2%. The toll would generate $1 billion to $1.5 billion a year and support $15 billion in debt financing for mass transit improvement.

© Reuters. FILE PHOTO: Vehicles sit in a line of traffic in Times Square in Manhattan in New York City, U.S., June 27, 2023. REUTERS/Mike Segar/File Photo

"As any one in New Jersey knows, if you screw Jersey, buckle up. We're not backing down," New Jersey Democratic Representative Josh Gottheimer said.

New York Governor Kathy Hochul said the plan was crucial to reduce congestion in New York City and said most New Jersey residents commuting to New York City use public transportation and would benefit from better mass transit. The federal highway administration declined to comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.