MTA Chief Warns of Construction Setbacks if Congestion Pricing Fails in Court

MTA Chair and CEO Janno Lieber expressed concerns in a Sunday interview about the lack of alternative strategies to fund planned projects should the congestion pricing toll be defeated in ongoing legal disputes. 

The congestion toll plan, crucial for funding MTA construction projects, is at risk as multiple lawsuits challenge its environmental and community review process. 

Scheduled to start on June 30th, the congestion pricing toll plan is expected to generate about $1 billion annually, vital for the MTA’s $51 billion capital plan, which includes upgrading subway accessibility, extending the Second Avenue Subway, and acquiring a fleet of clean electric buses.

In the interview, Lieber explained, “We don’t have a plan B,” emphasizing the substantial financial implications. 

The toll revenues are intended to enable the issuance of $15 billion in bonds for these projects. However, these plans could be derailed by legal decisions, with oral arguments for New York cases set for May 17 and a decision anticipated before the toll plan’s start date.

The legal challenges primarily argue that the Federal Highway Administration permitted an inadequately brief environmental assessment by the MTA, a claim the federal authorities and MTA deny. 

“It is in the hands of the judges who are looking at whether, as I said, the feds gave us an A+ for our environmental review,” Lieber noted.

The New York City Department of Transportation (DOT) has also unveiled numerous new projects to enhance bike and bus lanes, leveraging the anticipated increase in funding from congestion pricing.

NYC DOT Commissioner Ydanis Rodriguez stated, “Congestion pricing will reduce traffic, improve air quality in our communities, and raise critical funding for our subways and buses.”

Rodriguez added, “We have been preparing for this moment for over a decade, and with fewer cars entering the tolled zone, we can repurpose street space to make commuting by bus, bike, or on foot safer, faster, and more reliable.”

The plans also include modernizing signal systems and enhancing accessibility at key stations, which are part of the agency’s efforts to improve the New York City transit system.

However, the lawsuit plaintiffs have raised concerns about the program’s potential violation of the U.S. Constitution, which could result in its nullification. 

New Jersey has presented arguments concerning the interstate commerce clause, although these are not presently under court consideration.

Meanwhile, Rockland County has contended that the toll breaches the Eighth Amendment’s prohibition against excessive fines and the Fourteenth Amendment’s equal protection clause.

If the courts rule against the MTA, it could necessitate a new environmental assessment or a more extensive environmental impact statement, putting a hold on over $9 billion in construction contracts expected to be awarded this year for various projects across the city.