NJ: New $9 fee to drive into Lower Manhattan approved. Here’s what happens next with congestion pricing.

After a public hearing that saw more impassioned pleas for than against New York’s $9 congestion pricing fee, the MTA’s board approved it Monday, leaving it one step from a Jan. 5 start date.

The MTA board voted, with member David S.Mack the lone holdout, to approve plans to charge a fee to enter Manhattan’s central business district south of 60th Street. The plan with a higher $15 bas price had been in limbo since a June 5 hold placed by Gov. Kathy Hochul that she lifted on Nov. 14, proposing the lower $9 toll for non-commercial passenger vehicles.

“I just can’t vote for it,” Mack said. “I see many different avenues we could be taxing and with those avenues being more than $1 billion and being less of a burden, there are other alternatives.”

Among those options are placing tolls on 5 free bridges and better enforcement of parking and double parking regulations, he suggested.

Congestion pricing is designed to reduce traffic, crashes and air pollution and raise $1 billion annually for subway, bus and commuter rail projects by charging a fee to enter Manhattan’s central business district south of 60th Street.

A projected 80,000 to 110,000 commuters are forecasted to switch from driving to transit to avoid the fee, MTA officials said.

Other board members who voted for the nation’s first congestion pricing program called the moment transformative for New York City and cited reasons for their yes votes.

“Not to be overlooked is the public health impact ... the numbers of kids hospitalized for asthma is astounding,” said board member Midori Valdivia, who said she and her children have asthma. “Why not do everything we can to better the climate for our children?”

Congestion pricing new rates now go to the Federal Highway Administration for final approval before it can start on Jan. 5.

Hochul’s 40% reduction also reduces the original $5 credit for Holland and Lincoln tunnel tolls to $3. Non-E-ZPass customers would pay a 50% higher congestion fee.

Another change approved were phased in rate increases that would increase to $12 rate for non-commercial passenger from 2028 until 2030. In 2031, a $15 rate would be charged.

The MTA also has the right to charge a 25% higher congestion fee during Gridlock Alert Days during the UN General Assembly and the holiday season when heavy traffic is expected in Manhattan.

In defending the plans and citing how the MTA has addressed issues about service, security, efficiency and affordability, MTA CEO Janno Lieber took a swipe at neighboring transit systems.

“At time a time NJ Transit is in free fall and SEPTA is talking fare hikes and service cuts we’re doubling down on our route and increasing affordability,” he said. “This is a hopeful moment for drivers and transit riders. Things should get better if you have to drive and not get stuck in congestion.”

The MTA has “delivered $400 million in savings without cutting service or layoffs,” he said.

The people affected by the decision who drive to Manhattan represent one half of 1% of the region’s population, Lieber said.

“They will benefit from less traffic,” he said.

Most of the comments during a 40 minute public hearing were in favor of congestion pricing, although opponents included skeptical residents of affected neighborhoods.

“This will be a day that will live in infamy, I’m concerned if congestion pricing goes through we’ll lose more population, lose another congressional seats,” said Andy Creed. “They can’t afford $9 for five days a week. Don’t go through with this.”

Supporters said the transit system is the cities economic life blood that has to be maintained.

“I’m ready for a transit system that’s closer to 2030 than 1930, a system worthy of the people it serves,” said Betsy Plum, executive director of Riders Alliance. “I’m ready for transit riders to have our demands heard. It’s the only funding stream that improves transit while cleaning the air and cutting down on congestion.”

While New Jersey officials vowed to fight last week, Gov. Phil Murphy’s office’s reiterated his statement of opposition from last week in response to the vote.

“I have consistently expressed openness to a form of congestion pricing that meaningfully protects the environment and does not put unfair burdens upon hardworking New Jersey commuters,”he said in that statement. “Today’s plan woefully fails that test.”

U.S.Rep.and Democratic gubernatorial candidate Josh Gottheimer, D-5Th Dist., reiterated his skepticism at handling the MTA more cash.

“After years of legendary mismanagement and billions of dollars of waste, it’s no surprise that the MTA greenlit their Congestion Tax plan. Last year, the MTA lost $700 million on fare skippers. The MTA needs to get their house in order instead of looking to hardworking, middle-class families for a bailout,”he said. “It’s not right, especially when folks are already struggling with higher prices.”

Supporters cites its benefits of reducing traffic, gridlock and resulting pollution and crashes in Manhattan and the promise of raising $15 billion dedicated to MTA capital projects to improve the city subway, bus and commuter rail service.

Katie Slevin, Regional Plan Association executive vice president, was among those who said the MTA must be transparent about the program performance.

“Once it is turned on, the program must be monitored and tracked and results must be shared with the public,” she said. “It will be up to the MTA to ensure promised benefits are realized.”

Still in the wings is a decision on New Jersey’s July 2023 federal lawsuit challenging the MTA’s environmental study that led to a Federal Highway Administration approval that let congestion pricing proceed to almost starting.

“We won in New York State across the board and the judge ruled everything was done by the book,”Lieber said. “We anticipate ( U.S. International Trade) Judge (Leo) Gordon will look at the same issues.”

Randy Mastro, who is representing New Jersey in its legal challenge of congestion pricing, wrote to a federal judge last week saying Hochul and the MTA’s actions “make this case ripe for decision.”

MTA board member Neal Zuckerman called on the state to drop the suit.

“If you have a better idea where we can get $1 billion, we’re all ears, otherwise stop wasting time and effort, he said.

The other wild card is what the administration of President-elect Donald Trump will do once he is in office. Trump is opposed to congestion pricing and said on social media he will “terminate” it on his first week in office.

That resulted in congestion pricing supporters lobbying Hochul to start congestion pricing in the two and half months the Biden administration is still in charge.

But Lieber said he believes as a former New Yorker and owner of commercial real estate, Trump knows traffic is an impediment and that most people use public transit.

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