The lawsuit, filed against the Department of Transportation (DOT) and Federal Highway Administration (FHWA), accuses the federal agencies of violating environmental laws.
In May, the FHWA authorized a plan from New York's Metropolitan Transportation Authority (MTA) to charge commuters an increased fee to enter Manhattan in an effort to reduce congestion and improve air quality.
Governor Murphy criticized the FHWA for not conducting a full environmental review of the MTA's tolling program and accused the agency of prioritizing its own financial gain over the well-being of New Jersey families.
He stated, "The costs of standing idly by while the MTA uses New Jersey residents to help balance its budget sheets are more than economic." Murphy also expressed concerns about the tolling program diverting traffic and pollution to vulnerable communities in New Jersey without offering any mitigation measures.
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The governor argued that the plan violated President Biden's environmental justice agenda and Justice40 initiative, which aim to direct federal investments to disadvantaged communities burdened by pollution. He emphasized that the tolling program would disproportionately impact marginalized and underserved communities in New Jersey.
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Under the approved plan, commuters entering midtown or downtown Manhattan could face fees of up to $23 during peak hours and up to $12 during nighttime hours. The program is expected to generate approximately $1 billion in state revenue. While New York officials hailed the proposal as a significant climate victory that would improve air quality in polluted communities, New Jersey lawmakers criticized it for potentially increasing traffic and emissions in their state.
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Senator Bob Menendez of New Jersey called the proposed congestion tax scheme unacceptable and described it as a shakedown. He emphasized the need to protect New Jersey commuters from bearing the burden of New York's budgetary challenges. Representative Josh Gottheimer echoed these sentiments, expressing concerns about the impact of increased traffic on air quality and the health of children in New Jersey. Gottheimer also criticized the MTA Chairman for the mismanagement of the agency.
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In response to the tolling program, Gottheimer and Representative Mike Lawler of New York introduced legislation earlier this year that would withhold federal funding from infrastructure projects in New York unless commuters were exempted from all congestion pricing fees. Local lawmakers and business groups, including the New Jersey Chamber of Commerce, Meadowlands Chamber of Commerce, and New Jersey Business and Industry Association, also opposed the plan.
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In addition to the lawsuit, Governor Murphy signed legislation on Friday that enables New Jersey to tax remote employees who live out of state but work for companies based in New Jersey. This move aims to capture tax revenue from individuals who benefit from working for New Jersey-based companies but do not contribute to the state's tax base.
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