In a bid to block New York’s $23-per-day congestion pricing plan, New Jersey will sue the U.S. Department of Transportation and the Federal Highway Administration, Gov. Phil Murphy announced today.
The longshot legal maneuver claims the federal agencies violated the National Environmental Protection Act, which mandated thorough environmental reviews, and the Clean Air Act.
“After refusing to conduct a full environmental review of the MTA’s poorly designed tolling program, the FHWA has unlawfully fast-tracked the agency’s attempt to line its own coffers at the expense of New Jersey families,” Murphy stated, “The costs of standing idly by while the MTA uses New Jersey residents to help balance its budget sheets are more than economic.”
New Jersey has retained former U.S. Attorney Craig Carpenito and Randy Mastro, a one-time validator for Gov. Chris Christie, to mount the legal challenge.
Murphy said the Metropolitan Transportation Authority admitted that their proposed tolling program “would divert traffic and shift pollution to many vulnerable New Jersey communities, impacting air quality while offering nothing to mitigate such considerable harm.”
“Today, we stand as a unified front against this reckless scheme and reaffirm our commitment to combat the unjust taxation of our hardworking residents by other states,” he said.
Murphy was joined at the announcement of the lawsuit by a group of lawmakers, including U.S. Senator Bob Menendez, Reps. Josh Gottheimer (D-Wyckoff) and Bill Pascrell, Jr. (D-Paterson), Assembly Speaker Craig Coughlin, and State Sen. Joseph Lagana (D-Paramus).
“It’s unacceptable for New York to try balancing its budget on the backs of New Jersey commuters,” said Menendez. “Their proposed congestion tax scheme is nothing more than a shakedown and must be defeated.”
Gottheimer praised Murphy “for punching back at a state that decided to use Jersey as their piggy bank to solve their years of criminal mismanagement at the MTA.”
“We just don’t take a punch in Jersey, we punch back,” he said.
Pascrell alleged that New York is “telling the great people of New Jersey to drop dead.”
“The Empire State looks across the river and what they see is not a great state of 9 million souls,” Pascrell stated. “They see 9 million dollar signs.”
Murphy also signed legislation aimed at New York: a new law that allows New Jersey to tax remote employees who reside in another state but work for New Jersey – if their home state has a similar tax law.
“From ill-conceived tax grabs to congestion pricing, our friends across the river are taking advantage of us,” said Coughlin. “State government will stand shoulder to shoulder with local leaders and our congressional delegation on this.”
Lagana said that New York’s “convenience of the employer rule is an onerous initiative” that, like congestion pricing, unfair targets New Jerseyans.
“It helps level the playing field and provides employee equity, while also bringing more convenience and job opportunities to New Jersey residents,” said Lagana.