Transportation Secretary Sean Duffy sent an ultimatum to New York Gov. Kathy Hochul to end the congestion tax by May 21 or face huge cuts in federal funding for transportation projects.
“The federal government sends billions to New York — but we won’t foot the bill if Governor Hochul continues to implement an illegal toll to backfill the budget of New York’s failing transit system,” Mr. Duffy wrote. “We are giving New York one last chance to turn back or prove their actions are not illegal.”
The Metropolitan Transit Authority (MTA), which operates the toll system, has twice refused to comply with Secretary Duffy's requests to present a plan to end the toll. Duffy and Donald Trump believe that the approval given to the plan by the Biden administration was illegal in that it failed to meet all the criteria for implementing congestion pricing laid out in the 2019 Traffic Mobility Act, which explicitly states that the plan must comply with all federal laws and regulations.
The toll charges most drivers $9 to enter Manhattan below 60th Street during peak traffic times. Among the most vociferous opponents of the toll is the state of New Jersey.
New Jersey in July sued the US Department of Transportation, claiming the tolling plan needs a longer environmental analysis. The suit now adds New York’s Metropolitan Transportation Authority, which is implementing the plan, as a defendant, according to an amended complaint filed Tuesday.
New Jersey claims that congestion pricing violates the dormant commerce clause of the US Constitution, which prohibits states from enacting laws that discriminate against or unduly burden interstate commerce, according to the amended complaint. The congestion pricing plan fails to direct any of the new revenue to New Jersey, or offer tax credits to its residents or charge those living in the district — who are New Yorkers — for driving within the area, according to the amended complaint.
Proponents of the congestion tax claim that about 12% fewer vehicles have entered Lower Manhattan since the toll went into effect in January. Whoopteedo! So what if it's "working"? The point is that it's a regressive tax that hits the working class hardest. It's a whole lot harder for someone making $46,000 a year to pay that toll five times a week than for someone making $250,000 on Wall Street.
Hochul remains defiant.
“I received the letter from USDOT extending their congestion pricing threats once again,” Hochul said in a statement. “I repeat: congestion pricing is legal — and it’s working. Traffic is down, business is up and the cameras are staying on.”
New Jersey Gov. Phil Murphy will fight the toll to the bitter end.
“The federal government and the MTA can no longer be permitted to fast-track a proposal that solely benefits New York’s transportation system at the expense of hardworking New Jerseyans,” Murphy said in a statement Tuesday.
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The goal of the tax is to raise $15 billion for road improvements, subway maintenance, and other transportation funding. The problem exists because the state of New York has refused to appropriate adequate funds for its roads and subways for decades, leading to the current crisis.
Instead of raising the cash by raising taxes, New York politicians took the coward's way out and slapped a tax on the privilege of driving into the city for work or pleasure. It's a question that will ultimately be decided by the Supreme Court, perhaps by the end of this year.
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