NJ lawmakers push bill to stop federal funding for MTA amid congestion pricing fight

Traffic in Midtown in New York City.
Traffic in Midtown in New York City. Photo credit Getty Images

TRENTON, N.J. (WCBS 880) — Some New Jersey lawmakers are proposing a federal bill to prevent the MTA from receiving federal dollars for projects in retaliation for New York’s proposed congestion pricing plan.

Congressman Josh Gottheimer says the proposed taxing plan in New York City is unfairly targeting New Jersey commuters, who regularly drive into Manhattan for work.

The northern New Jersey Democrat says New Jersey drivers will likely end up paying the most towards congestion pricing, which is meant to help pay for much-needed repairs in the city’s subway system.

“They think Jersey, that we’re their ATM machine and they want to take another withdrawal from Jersey,” Gottheimer said.

Now, he and other lawmakers on doubling down on a federal bill – Anti-Congestion Tax Act – that would prohibit the Department of Transportation from awarding any new Capital Investment Grants to the MTA until drivers from New Jersey receive exemptions from the congestion tax. It would also mend the Internal Revenue code to give a federal tax credit equal to the congestion tax so New Jersey doesn’t get double taxed.

He says the bill is hoping to help New Jersey commuters from paying outrageous tolls that do not benefit them.

“It's a slap in our face and we're not going to allow it. We’re going to stand up to it, whether that's in the state or combined with our federal action,” Gottheimer said.

On the first day in office, incoming Gov. Kathy Hochul will also receive a letter from Gottheimer explaining why the proposed congestion tax is bad for New Jersey and New York.

“I'm hoping when she sees the facts, she’ll recognize that this is not only harmful for Jersey, but actually harmful for New York,” the congressman said. “If you're trying to get people back into New York City, as they're trying to do now, that's not a way to put a big welcome sign, to get people to commute back here.”

There's also a bill in the works on the state level, which would create a tax for all New York drivers entering New Jersey.

“We really don't want to do it but we have to, we will” said New Jersey State Sen. Joe Lagana. “It is to essentially to charge people going in or coming out of whatever crossing, captured from EZ-Pass and if you’re an out-of-state driver – a non-New Jersey driver –you're gonna pay an extra fee for coming into New Jersey. It’s as simple as that.”

Featured Image Photo Credit: Getty Images