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Congestion Pricing in NYC: A Boon for New Jersey Businesses?

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the staff of the Ridgewood blog

New York NY, the controversial New York City congestion pricing toll, set to begin January 5, has sparked fierce debate and concern among New Jersey officials and businesses. With charges of $9 for cars and nearly $22 for trucks, critics argue the toll could significantly impact commuters and firms conducting business in Manhattan.

Garden State Senator George Helmy suggests the new toll may push companies to relocate across the Hudson to New Jersey, where employees and customers can avoid the additional cost.

A Potential Business Exodus

Speaking on CBS, Helmy emphasized the toll’s potential to backfire:

“A lot of the employees who come to the city every day are New Jerseyans, mostly north New Jerseyans, or [they] live in our shore communities. If they can get [their] businesses to move into Jersey City or Hoboken, where we’re already seeing some of that influx, I think it’s going to be good for New Jersey.”

The toll is designed to reduce traffic and fund upgrades for the Metropolitan Transportation Authority (MTA), but opponents, including Helmy, argue it disproportionately burdens New Jersey commuters and businesses.

A Growing Opposition in New Jersey

New Jersey officials, including Governor Phil Murphy and Representatives Josh Gottheimer and Mikie Sherrill, have criticized the plan.

“This plan is a tax on New Jersey families meant to force New Jerseyans to pay for MTA upgrades — all without getting a cent back for NJ TRANSIT,” said Sherrill.

Adding to the resistance, nearly a dozen lawsuits challenge the plan. Earlier this month, New Jersey’s legal team urged a federal judge in Newark to block the toll, citing unfair treatment of New Jersey commuters.

The Impact on Commuters and Businesses

For many Garden State residents, the toll represents another obstacle in their daily commute. Businesses reliant on deliveries or in-person services in Manhattan also face increased costs, potentially prompting a shift to New Jersey cities like Hoboken or Jersey City, already attractive due to proximity and affordability.

The Bottom Line

As New York Governor Kathy Hochul pushes forward with the toll, New Jersey leaders vow not to back down. The outcome of legal battles and economic shifts in response to the toll will shape the region’s future.

With businesses and workers weighing their options, New Jersey could emerge as an unexpected winner in this transportation tug-of-war.

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One thought on “Congestion Pricing in NYC: A Boon for New Jersey Businesses?

  1. I used to work in that funny-looking building on the left until I retired in 2021, it’s located on W 33rd off the corner of 10th Ave. I live in New Jersey and I hope this insane tax does cause many businesses to move over here

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