Feds give final approval for congestion pricing as Hempstead files lawsuit

Federal transportation officials have granted final approval for New York’s congestion pricing plan, clearing the way for the MTA to charge vehicles $9 for driving below 60th Street in Manhattan beginning Jan. 5.

Announcement of the approval followed the filing of the latest lawsuit by Hempstead Town officials aiming to block congestion pricing.

While legal challenges could be the last hope of opponents to stop the first-in-the-nation tolling plan from taking effect, the Metropolitan Transportation Authority said the approval marked a significant step forward.

"Today is the moment we’ve been waiting for, when we cleared the final bureaucratic hurdle to implement congestion pricing," MTA chairman and CEO Janno Lieber said in a news conference Friday afternoon in Manhattan’s Grand Central Terminal. "We’re talking about delivering better transit, safer streets and cleaner air for all, along with reduced congestion."

The announcement of the Federal Highway Administration's formal approval came four days after the MTA Board voted to accept Gov. Kathy Hochul’s reduced toll rate of $9 for most vehicles. In June, weeks before the MTA was set to enact a $15 toll, Hochul ordered the MTA to pause its plan, citing affordability concerns.

A week after Donald Trump, a vocal congestion pricing opponent, was elected to the White House, Hochul lifted her pause, and she and the MTA expedited a plan to get the tolls in place before Trump takes office on Jan. 20.

The $9 rate will be in place from 5 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends. Tolls will be discounted by 75% during overnight hours. Drivers of trucks and those without an E-ZPass will pay a higher rate.

Although federal regulators had already approved congestion pricing in New York, Lieber said the retooled plan had to be sent back to them for "reevaluation," including Hochul's proposal to gradually increase tolls until reaching the original $15 rate in 2031.

The FHA in a statement Friday confirmed it "approved the reevaluation for the New York Congestion Pricing phase-in approach" and signed a tolling agreement with the MTA, New York City and New York State.

The MTA still has to complete a state-required "public review" that will last about a month and include webinars to educate the public on the new tolls. The plan could also be delayed by court rulings in several lawsuits challenging the legality of congestion pricing, the latest of which was filed in state court by the Town of Hempstead Thursday.

The town already filed a federal lawsuit in May looking to stop the tolls. The new case claims the MTA failed to adhere to state administrative law by not allowing a 45-day pre-adoption public notice period when it adopted the lower toll rate.

Hempstead Supervisor Donald X. Clavin Jr. has argued the tolls amount to a "regressive tax" that will be a hardship for Hempstead residents who commute into the city.

"This is really about what's fair," Clavin said in an interview. "This is the worst part of government, where you're steamrolling through a tax increase and not giving people the opportunity to be heard."

Lieber said MTA officials "always knew we were going to have to deal with" legal challenges right up until implementation of the plan, but added the transit authority is "confident" it would prevail in court.

Although Lieber said he had not read Hempstead's latest legal challenge, he criticized town government officials for "moving backward" with restrictive policies, including those having to do with developing housing near transit.

Clavin declined to answer Newsday’s questions about whether he thinks it is important to reduce greenhouse gases, but he said his administration has a "green thumb," citing recycling and other programs.

Gordon Tepper, a spokesman for Hochul, declined to discuss ongoing litigation, but drew attention to congestion pricing’s potential to fund public transportation.

"Nearly 90% of commuters to Manhattan’s central business district rely on public transit, walking, and biking — and this congestion reduction plan will deliver $15 billion to ensure better, faster transit for millions of working New Yorkers," he said in a statement.

Clavin, a Republican in his third term as supervisor, said congestion pricing faces opposition from both sides of the political aisle, citing incoming Long Island Democratic congresswoman Laura Gillen’s opposition to the plan.

Clavin said the MTA should look elsewhere to solve its financial woes — including by making subways safer and by reining in fare evasion, which costs the MTA about $700 million a year. The MTA has argued it is making progress in that regard.

In addition to reducing the number of cars in Manhattan by about 13%, the congestion pricing plan aims to improve air quality and generate funding for transit. The MTA plans to use the toll revenue to finance about $15 billion in infrastructure projects, including on the Long Island Rail Road.

Supporters celebrated the federal government's approval. Kate Slevin, executive vice president of the Regional Plan Association, said in a statement that her group "looks forward to realizing [the congestion pricing plan's] benefits, including better transit, faster commutes, safer streets for pedestrians and cyclists, and clearer air for all."

"With all parties on board and a final agreement signed with the federal government, today marks a major step on our way to less traffic, cleaner air, and robust investments in mass transit," said Julie Tighe, president of the New York League of Conservation Voters.

Danny Pearlstein, spokesman for the Riders Alliance, a transit advocacy group, said "while a relative few pay a new toll, 20 million Americans in four states will save time, money and aggravation."

"Once it starts, congestion pricing will again demonstrate that, together, we can address our common challenges and improve people's lives," Pearlstein said.

Despite its support among some transit and environmental advocates, congestion pricing has proved unpopular among many New Yorkers, including nearly three-quarters of Long Island voters, according to a November 2023 Siena College poll. Still, only one MTA Board member — Nassau County representative David Mack — opposed the measure.