Governor-elect Mikie Sherrill will encounter a packed transportation agenda upon taking office in 2026. Significant events and ongoing initiatives will demand attention across the state.
Traffic Pricing Dispute
The Manhattan congestion pricing plan, charging drivers $9 to enter below 60th Street, remains active despite federal opposition. The Metropolitan Transportation Authority received judicial approval to continue the program after New Jersey's legal challenge, with collections beginning on Jan. 5, 2025.
U.S. Transportation Secretary Sean Duffy attempted to "terminate" the program in February, prompting the MTA to file a lawsuit against the federal department. Judge Lewis Liman has yet to rule on the case, though the Trump administration urged a decision in a December letter.
Rising Commuter Costs
Annual 3% increases in tolls and fares, established under Governor Phil Murphy, are scheduled for 2026. Turnpike and Parkway tolls will rise in January, while NJ Transit fares will increase on July 1, marking a 21% cumulative rise since 2023.
Sherrill expressed desire to "move away from" these automatic hikes but noted the need for careful planning.
Port Authority Developments
Kathryn Garcia is poised to become the new executive director of the Port Authority of New York and New Jersey, succeeding Rick Cotton. Multiple projects will progress throughout the year:
- The $10 billion bus terminal renovation enters heavy construction, expected to continue until 2032.
- Construction on the $3.5 billion Newark AirTrain advances toward a 2030 completion.
- The $160 million Newark Airport Railroad Station access project nears completion, providing South Ward residents with transit connections.
Gateway Tunnel Progress
The $16 billion Gateway tunnel project regains momentum after federal funding pauses in October. The Trump administration initiated a review of procurement practices, coinciding with government shutdowns and perceived political retaliation.
A December letter from the U.S. Department of Transportation outlined findings and requirements for resuming federal funds. Meanwhile, half of the first-phase projects are underway, with tunnel boring machines arriving in January.
World Cup Preparations
NJ Transit begins constructing a temporary bus terminal at MetLife Stadium in January 2026 to accommodate FIFA World Cup crowds. Eight matches, including the final, will occur in East Rutherford during June and July.
A comprehensive mobility plan briefing is scheduled for Jan. 15, 2026, with additional planning for permanent bus routes between Jersey City and the stadium.
Turnpike Authority Matters
Construction starts on the $6.2 billion Newark Bay Bridge replacement, the first phase of a controversial expansion project. Additionally, a court case continues regarding the E-ZPass program contract award to TransCore over lower bidder Conduent, now before the state Appellate Division.
Portal Bridge Transition
Significant disruptions are expected in early 2026 as workers align the old Portal Bridge with the new Portal North Bridge. This "cutover" process will reroute or cancel approximately 450 daily NJ Transit and Amtrak trains for about six weeks, after which trains will begin using the new structure.
