New York City's groundbreaking congestion pricing plan is poised to commence this weekend, despite a legal challenge from New Jersey. A federal court ruling acknowledged the need for further review by the Federal Highway Administration (FHWA), but did not issue an injunction, allowing the Metropolitan Transportation Authority (MTA) to proceed with the scheduled January 5th start date.

The MTA asserts that the court's concerns regarding the plan's environmental assessment do not impede the implementation. The congestion pricing system will impose a $9 peak toll for cars entering Manhattan below 60th Street during weekdays (5 a.m. to 9 p.m.) and weekends (9 a.m. to 9 p.m.), with a 75% discount during off-peak hours.

New Jersey's lawsuit, which raised concerns about potential environmental harm and increased traffic, prompted the court's remand to the FHWA for further action by January 17, 2025. However, the state's attorney argues this requires a halt on the planned implementation, while the MTA insists this ruling does not prevent the toll from taking effect.

Despite New Jersey's opposition, Governor Kathy Hochul stated that New York has offered settlement options, which were not accepted, and maintains that congestion pricing will launch as planned. The MTA anticipates a 10% reduction in vehicles as a result of the tolls, with generated funds earmarked for public transportation modernization.

This legal challenge follows another recent dismissal of a suit from a coalition of groups seeking to halt the pricing scheme, clearing another hurdle for the implementation. The court ruled that those claims did not demonstrate sufficient evidence for a temporary injunction.