Sen. Bob Menendez is the latest North Jersey politician promising to fight the New York City Congestion Tax.
Menendez was joined on May 15 in Fort Lee by advocates and business leaders to announce his legislation—the STOP NJ CONGESTION Act— which he is introducing in the U.S. Senate this week to address New York’s congestion pricing tax on New Jersey drivers and small businesses.
“My bill is simple: If congestion pricing is given final approval and New York moves forward with implementing its misguided plan, my bill would impose highway sanctions against the State of New York,” said Menendez.
NYC Congestion Tax
The U.S. Department of Transportation’s Federal Highway Administration (FHWA) on May 5 approved New York and the Metropolitan Transportation Authority (MTA)’s plan to impose a maximum $23 fee for non-commercial passenger vehicles to enter the “central business district” south of 60th Street in Manhattan.
The stated goal of the New York plan is to reduce the environmental impact from cars and trucks while at the same time raising revenue for the cash-strapped MTA subways, buses and commuter rail. The decision by the FHWA for the first congestion pricing program in the country allows its environmental review to stand in place of an environmental impact decision due to mitigating “the adverse effects from the preferred alternative.”
Menendez Legislation
The STOP NJ CONGESTION Act would impose highway sanctions on any state that implements the program described in the final environmental assessment for the Central Business District Tolling Program, or any similar program.
Menendez said that would cause New York to lose 50% of their National Highway Performance Program (NHPP) and Surface Transportation Block Grant Program (STBG) funding if they choose to move forward with the congestion tax, a move New Jersey’s Senior U.S. Senator would serve to directly disincentivize New York from implementing its congestion pricing system.
The bill would also amend the underlying Value Pricing Pilot Program, which New York is using to implement its congestion pricing proposal, to require that a project sponsor to receive approval from any state that would be reasonably impacted by a proposal under the program.
A Seat at the Table
“My bill would require New York to meaningfully engage with — and receive consent from — affected states like New Jersey before any congestion pricing is approved,” said Menendez. “This would guarantee New Jersey a seat at the table for future proposals, something we should have had all along.”
North Jersey lawmakers and business leaders have argued that in addition to the current $17 toll to cross into New York through the Holland and Lincoln tunnels, a $23-a-day congestion fee would impose a $5,000-a-year burden on New Jerseyans who work or do business in Manhattan, as well as an added strain to New Jersey’s transit systems and infrastructure.
Ron Simoncini, executive director of the Fair Congestion Pricing Alliance, said the congestion tax is just a “trick” to have New Jerseyans pay for upgrades to New York mass transit that New Yorkers use and should pay for themselves.
Effect on Businesses
“Telling New Jerseyans that congestion pricing works in London is as insulting as telling a fish how pretty the hook looks in his mouth,” said Simoncini. “There is nothing to recommend congestion pricing as a solution for traffic woes.”
Jim Kirkos, President and CEO of the Meadowlands Chamber of Commerce, stated that there are innumerable types of businesses that will suffer from congestion pricing in North Jersey—from companies that send their salespeople to New York to service those markets to companies that go to New York to procure goods and companies that ship product to New York businesses.
“It increases costs of operation and will ultimately mean inflated costs to consumers in New York and New Jersey,” said Kirkos. “The MTA expects everyone to ignore the fact that New Jersey was completely left out of any and all discussions regarding this program. We are going to fight however we can—and reducing our coupling from New York to reduce the negative impacts of congestion pricing will be a likely consequence.”
No-win for New Jersey
In addition to the legislation being introduced this week, Menendez is sending a letter to Transportation Secretary Pete Buttigieg expressing “serious concern” about the impacts New York’s congestion pricing plan will have on New Jersey communities.
The letter urges Buttigieg to pursue a full Environmental Impact Statement (EIS) that includes input from and equity for all stakeholders, including those in New Jersey.
“My bill slams the brakes on this awful congestion pricing plan,” said Menendez. “This congestion pricing plan is a no-win for our state.”
Is this just political posturing or do Sen. Mendez and other NJ legislators really expect a majority of both houses of Congress to vote for their bills? Why would a Senator from, say, Iowa or Colorado takes sides in a NJ – NY battle? Why should they care?