The Biden administration approved a New York plan to tax drivers heavily in Manhattan, a scheme derided by a bipartisan group of lawmakers.
Final federal approval was granted by the Federal Highway Administration, allowing a local panel of Metropolitan Transportation Authority officials to decide implementation, including toll rates, times, and exemptions.
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While Manhattan drivers are already taxed in large sums to use the tunnels accessing the city across the Hudson, East, and Harlem rivers, these additional tolls would cover drivers entering south of Manhattan’s 60th Street.
Estimates show the potential for a $23 tax on drivers.
Original approval of the plan was signed by disgraced former New York Democratic Gov. Andrew Cuomo in 2019 but has been continued through Gov. Kathy Hochul’s (D-NY) administration.
“With the green light from the federal government, we look forward to moving ahead with the implementation of this program,” Hochul said in a statement.
The plan has fueled tension, and legal threats, between New Jersey and New York, as well as condemnation from lawmakers of both parties.
“It comes as a shock, but not a surprise, that the Biden administration decided to let the MTA move forward with one of the largest cash grabs from suburban commuters in history,” Rep. Mike Lawler (R-NY) said in a press release. “The MTA, rather than getting their own books in order, including examining how on earth they spent more on consultants than the actual boring of the Second Avenue Subway, has opted to squeeze suburban commuters even more.”
“If Gov. Hochul and the MTA think this is the way to raise revenue, they’ll probably act shocked when more and more taxpayers continue to flee New York,” Lawler continued. “For those common sense folks that remain in the state, this could be the final nail in the coffin on their decision to move away.”
Gov. Phil Murphy (D-NJ), Sen. Bob Menendez (D-NJ), and other New Jerseyans have come out strongly against the measure.
In May, Murphy launched a billboard campaign to influence New Yorkers against the tax, donning the slogan “Pay congestion tax to sit in NYC traffic? Get outta here.”
Recently, Murphy retained lawyers in anticipation of suing New York and the Biden administration should the taxes be implemented.
The New Jersey General Assembly passed the “Stay in Jersey” bill to provide grants for businesses to allow their employees who live in the Garden State to work from home.
On Tuesday, Reps. Josh Gottheimer (D-NJ) and Nicole Malliotakis (R-NY) released a joint statement slamming the plan.
“Gov. Hochul is right, New Yorkers and New Jersey families do ‘have a lot to lose’ from the implementation of this Congestion Tax — primarily more of their hard-earned money,” the Republican and Democrat said. “It’s disappointing to see Gov. Hochul and the USDOT work hand in hand with the MTA to fleece New York and New Jersey families with this costly, untested program.”
“The MTA’s own report admits that the Congestion Tax will only shift traffic and pollution from more urbanized areas to the outer boroughs and New York City suburbs, including New Jersey, disproportionately impacting our constituents who are being used to pick up the tab for the woefully mismanaged MTA that is running a budget deficit,” they continued.
They vowed to look at “legislative options” to prevent the tax and said they supported Murphy’s “efforts to take legal action” against New York. Murphy on Tuesday hired lawyers to seek all legal options to stop the congestion pricing from moving forward.
Gottheimer also issued a joint statement with fellow New Jersey Democrats Menendez and Rep. Bill Pascrell (D-NJ) against the New York tax.
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Former New York GOP Rep. Lee Zeldin, who came close by New York standards to beating Hochul in the 2022 election, slammed Hochul on Twitter, saying, “There are some terribly incompetent Governors out there, but none are worse than Kathy Hochul. Here she is bragging about screwing hardworking New Yorkers with a brand new fee they can little afford that will ironically increase truck traffic in the Bronx and on Staten Island.”
Hochul’s office did not return a request for comment from the Washington Examiner.
