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Congestion Pricing Settlement Stalls Between New York and New Jersey

Gov. Kathy Hochul said New York offered New Jersey “generous” incentives to settle its lawsuit against the tolling plan. A judge could soon determine the program’s fate.

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Negotiations between the feuding states of New York and New Jersey over the future of congestion pricing have stalled, possibly setting the stage for another last-minute suspension of the tolling plan that is scheduled to begin next month.

New Jersey filed a lawsuit last year that is widely considered among the most formidable threats to congestion pricing, which aims to fund improvements in New York City’s mass transit system by charging motorists a toll to enter Manhattan below 60th Street.

New Jersey’s suit argues that federal officials allowed New York to move ahead with congestion pricing without fully addressing how the tolling program could shift traffic and pollution in the region. After the parties argued their case in April in Newark, a federal judge urged the parties to settle the case, according to Politico.

But discussions have been rocky, Gov. Kathy Hochul said during an unrelated news conference on Wednesday afternoon. Responding to questions from reporters, Ms. Hochul said it did not seem that New Jersey officials were negotiating “in good faith at this point.”

“We’ve made multiple offers to settle this lawsuit, very generous offers,” Ms. Hochul said, offering few further details.

According to people familiar with the confidential talks, New York’s negotiators have offered New Jersey hundreds of millions of dollars to settle the lawsuit. New York’s representatives have also included additional toll credits for New Jersey drivers in the proposed deal, according to the people, who added that Ms. Hochul spoke with Gov. Philip D. Murphy of New Jersey as recently as Wednesday morning to discuss the matter. Mr. Murphy’s office declined to comment.