New Jersey is set to receive a portion of the revenue from New York City's new congestion pricing plan. The announcement was made by Metropolitan Transportation Authority Chairman and CEO, Janno Lieber. The funds will be divided among counties like Bergen and Hudson, which are expected to face the most congestion.
The congestion pricing plan is a first-of-its-kind initiative in the U.S. It aims to reduce traffic in Manhattan by charging most cars $15 to enter the area below 60th Street. The scheme is expected to generate around $1 billion a year, which will be used to modernize the MTA's system of buses, subways, and commuter lines.
Lieber did not specify the exact amount that New Jersey would receive, but he indicated that it would likely be in the millions. The funds are intended to help these areas combat potential pollution from the tolling. The allocation is based on the population in areas that will be affected by congestion pricing.
"The way that all of this is determined is allocations by the number of people who are in areas that are impacted by additional truck traffic," Lieber explained to BNN Bloomburg. "And New Jersey will get its share exactly on the arithmetic."
The congestion pricing plan has faced legal challenges, including a federal lawsuit from New Jersey seeking a longer environmental review of the scheme. The allocation of funds to New Jersey could help resolve this legal dispute.
The MTA plans to start charging motorists as soon as mid-June, with all of the tolling infrastructure already installed. The transit agency is currently awaiting final approval from the Federal Highway Administration.