A federal judge on Monday found that New York had taken most of the necessary steps to enact a plan that charges drivers when entering the center of Manhattan, and the Metropolitan Transportation Authority said it would go into effect on Sunday.
But the judge also ordered federal transportation officials to review and further explain some aspects of the program, known as congestion pricing. And a lawyer for the State of New Jersey, which had sued to block the plan, said the ruling meant it could not be implemented.
Gov. Kathy Hochul of New York called the decision from Judge Leo M. Gordon in U.S. District Court in New Jersey “a massive win for commuters in both New York and New Jersey.”
“Despite the best efforts of the State of New Jersey trying to thwart New York’s ability to reduce congestion on our streets while making long-overdue investments in public transit, our position has prevailed in court on nearly every issue,” she said in a statement, declaring that congestion pricing would proceed as planned.
The 72-page decision from Judge Gordon does not appear to stop New York from going forward with the program while the federal authorities address his concerns.
Still, Randy Mastro, a lawyer representing New Jersey, insisted that the M.T.A. could not proceed, arguing that the ruling actually blocked the plan.
He said that the judge had determined that the Federal Highway Administration “acted arbitrarily and capriciously in approving the M.T.A.’s plan,” and that “more consideration is needed before the current congestion pricing proposal may take effect.”
Congestion pricing aims to provide funding for mass transit in New York City by charging most motorists $9 to enter Manhattan at 60th Street or below.
The lawsuit was among the last major obstacles to its implementation. New Jersey officials have sought to stop the plan, criticizing federal transportation officials for allowing New York to move forward with it without adequately assessing its possible environmental effects on their state.
Instead, the lawsuit argued, the M.T.A. initially committed millions of dollars to alleviate pollution that could be triggered by a possible uptick in traffic in the Bronx, with no specified funding for Bergen County in New Jersey — even though an environmental assessment the M.T.A. conducted showed that traffic increases would be greater there.
The M.T.A. later said that it would also provide funding to New Jersey in places that could be negatively affected. But in his ruling, Judge Gordon said that it was not clear whether the money had been distributed fairly, and he requested more specifics.
The case was widely considered among the most formidable threats to the tolling plan, which still faces several lawsuits in New York and New Jersey. Last week, two federal judges in New York had ruled separately against challenges by congestion pricing opponents, including Vito J. Fossella, the Staten Island borough president, and Michael Mulgrew, the president of the United Federation of Teachers, and officials of Rockland and Orange Counties.
The ruling in the New Jersey case — which was argued in court in April — has taken on renewed urgency since Ms. Hochul resurrected the program in November, lowering the toll to $9 from $15 for most drivers. She had paused it in June, weeks before it was set to begin, citing concerns that the tolls were too high for many New Yorkers and could hurt the city’s recovery from the coronavirus pandemic. At the time, many experts disputed that idea.
Any further delay could give its opponents an opportunity to stop congestion pricing for good. President-elect Donald J. Trump has vowed to kill the program when he takes office in January, saying the added costs could keep tourists away from Manhattan and hurt businesses.
Janno Lieber, the chief executive of the M.T.A., suggested that the judge’s remaining concerns had been addressed by actions taken in recent weeks and would be simple to resolve.
“We’re gratified that on virtually every issue, Judge Gordon agreed with the New York federal court and rejected New Jersey’s claim that the environmental assessment approved 18 months ago was deficient,” Mr. Lieber said in a prepared statement.
Michael Gerrard, a Columbia Law School professor who supports congestion pricing, said that Judge Gordon did not specifically prohibit the program from starting. “He is giving the Federal Highway Administration the opportunity to dot all the i’s and cross all the t’s, but he’s not standing in the way of the startup of congestion pricing,” Mr. Gerrard said. “I think the legal pathway is now clear for congestion pricing to begin on Jan. 5.”
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