Federal Government Fights New York on Congestion Pricing
Anyone who has spent an hour in Manhattan knows that it is crowded, which is part of the reason why the state of New York introduced congestion pricing to the lower part of the island. The Trump Administration is fighting back, rescinding previous approval from the prior administration and promising to see the other party in court.
Details
When it comes to these congestion prices, commercial trucks and other vehicles are hit especially hard.
“Truckers deserve our gratitude. Instead, New York imposed a $21.60 toll—eventually climbing to $36—each time they crossed south of 60th Street,” Chris Spear, ATA president and CEO, said on the implementation of congestion pricing. “Even worse, the proceeds of this shakedown were not dedicated to improving roads and bridges but rather subsidized a bloated and mismanaged transit bureaucracy that has proven unable to control spiraling costs. New York’s subways were never going to deliver the city’s freight.”
There is an argument to be made that the added cost of delivery to lower Manhattan would be passed along to the final consumer, but with prices recently being elevated on various items such as gasoline and eggs, customers are at a tipping point and eventually something will give.
One of the major reasons DOT Secretary Sean Duffy is making this move is because the revenue generated by it would be going to the subway system, rather than helping the people who use the roads and travel within lower Manhattan. He succinctly said in his letter to Governor Kathy Hochul, “I do not believe that this is a fair deal.”
The Metropolitan Transportation Authority, the entity managing the tolling system, is suing the Trump Administration, with Governor Hochul saying that “the cameras are staying on.”
Conclusion
It goes without saying that whenever the Trump Administration lifts a finger, there is a lawsuit waiting in the wings to dispute the claim. However, with this one having a disproportionate effect on trucking companies, it will be interesting to see what becomes of this impending court case. Hopefully it goes better for the trucking industry than what happened with the Rhode Island toll case.
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