On Tuesday, February 26th, New York City’s small business owners, alongside elected officials, rallied against the impending congestion pricing plan, announcing an expanded class action lawsuit demanding a comprehensive environmental and economic impact study before its implementation. The lawsuit, which now includes nearly 50 plaintiffs, underscores the growing concern among the city’s entrepreneurs and residents about the potential repercussions of the congestion pricing scheme on Manhattan’s economic landscape.
The Metropolitan Transportation Authority’s (MTA) congestion pricing plan, aimed at reducing traffic congestion and funding public transportation improvements, proposes a $15 daytime fee for non-commercial passenger vehicles with E-Zpass and $22.50 for those without to enter Manhattan south of 60th Street. Critics argue that this fee will deter customers from visiting local businesses, compelling owners to reduce staff and operating hours.
City Council member Vickie Paladino voiced the frustration of many, stating, “We have now got a city that’s going to be choked to death.” Similarly, business owner Steven Traube expressed concerns about the plan’s complexity and its potential to drive businesses out of the city.
The MTA contends that congestion pricing is crucial for the continuation of its $51 billion capital plan for 2020 through 2024, with more than half of the remaining funding dependent on the revenue generated by the scheme. Projects at risk due to legal challenges include signal modernizations, the acquisition of new subway cars, and the purchase of over 250 new electric buses, alongside the creation of approximately 20,000 new jobs.
In response to the lawsuits, the MTA has announced an exemption from the additional tolls for vehicles transporting individuals with qualified disabilities. Jamie Torres-Springer, MTA Construction & Development President, emphasized the thoroughness of the environmental review and community outreach undertaken, expressing confidence in the legal standing of the congestion pricing plan.
As public hearings on the matter are set to commence, opponents of the plan are urging New Yorkers to voice their concerns, highlighting the critical juncture at which the city finds Itself in balancing economic interests with environmental and transportation goals. The MTA remains hopeful that, with favorable legal rulings, congestion pricing could be implemented by mid-June 2024.
