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Federal Highway Administration approves Manhattan congestion pricing plan

Heated reactions to feds' approval of congestion pricing
Heated reactions to feds' approval of congestion pricing 02:20

NEW YORK -- The Federal Highway Administration has approved New York's congestion pricing plan, clearing the way for the city to begin charging drivers to enter Manhattan's Central Business District.

It is the final hurdle that will allow the MTA to begin its first-in-the-nation congestion pricing plan, charging motorists a fee any time they go below 60th Street.

"Congestion pricing will reduce traffic in our crowded downtown, improve air quality and provide critical resources to the MTA. I am proud of the thorough environmental assessment process we conducted, including responding to thousands of comments from community members from across the region. With the green light from the federal government, we look forward to moving ahead with the implementation of this program," Gov. Kathy Hochul said in a statement.

Watch Marcia Kramer's report

Congestion pricing could start in 2024 after federal approval 01:50

But the news was not received well by officials on the other side of the Hudson River. New Jersey Gov. Phil Murphy hired two lawyers, including Rudy Giuliani's former deputy mayor, Randy Mastro, to explore legal options.

A spokesperson for Murphy said, "The Federal Highway Administration's decision to green-light the MTA's proposed tolling program marks yet another slight against hardworking New Jerseyans in favor of an agency concerned not with removing vehicles from our roads, but with lining its own coffers."

New Jersey Congressman Josh Gottheimer said, "Every day I hear the same thing: 'Are you kidding me? We already pay $17 to drive over the bridge or go through the tunnels.'"

Other MTA updates

Latest updates from MTA board meeting 02:08

Gottheimer says the MTA is badly mismanaged.

"And they are looking to someone to pay their bills for their mismanagement and they say, 'Well, they say we'll make Jersey pay,'" Gottheimer said.

"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," added Hudson Valley Congressman Mike Lawler. "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, a Republican, 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."

READ MOREMTA Chair Janno Lieber talks congestion pricing, rising fares and fare evasion on "The Point with Marcia Kramer"

As far as the MTA is concerned, the next steps include the installation of the tolling apparatus and the decision on what fees will be charged and when.

The fee structure will be set by a mobility panel, which will include decisions about exemptions and whether the price will be determined by the time of day.

MTA Chairman Janno Lieber told CBS2 recently that one topic under consideration is charging less to New Jersey drivers who use the Holland and Lincoln tunnels as well as New York drivers who use the Brooklyn Battery and Queens Midtown tunnels.

"It's going to be better for the people who do have to drive into the Central Business District, if it's easier to get around. So there's going to be a net benefit to everybody," Lieber said.

MTA officials told CBS2 that the green light gives the company hired to install the tolling apparatus 310 days to complete the work. That would mean congestion pricing could start as early as next May, unless New Jersey's governor finds a way to stop it.

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