The U.S. Department of Transportation’s Federal Highway Administration on Wednesday terminated approval of the pilot for New York City's congestion pricing program.
In a letter to Governor Kathy Hochul, the department rescinded a Nov. 21, 2024 agreement signed under the Value Pricing Pilot Program that effectively ends tolling authority for New York City’s cordon pricing plan, which imposes tolls on drivers entering Manhattan below 60th Street, according to a press release.
“New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” said U.S. Transportation Secretary Sean Duffy. “Commuters using the highway system to enter New York City have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes. But now the toll program leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways. It’s backwards and unfair.
Duffy also said the program hurts small businesses in New York that rely on customers from New Jersey and Connecticut and impedes the flow of commerce by increasing the costs for trucks, which in turn could make goods more expensive for consumers.
"Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few," he wrote.
Duffy said he is terminating the program for two reasons. First, the scope of the program is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in this major urbanized area. Second, the toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion. By doing so, the pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction – not transit revenue generation.
The Metropolitan Transportation Authority said it filed paperwork in federal court on Wednesday in an attempt to keep the program going.
“It’s mystifying that after four years and 4,000 pages of federally-supervised environmental review – and barely three months after giving final approval to the Congestion Relief Program – USDOT would seek to totally reverse course," said Janno Lieber, the chair of the MTA.
Governor Kathy Hochul said the U.S. is "a nation of laws, not ruled by a king." Since the MTA initiated legal proceedings in the Southern District of New York to preserve the program, "We’ll see you in court," she said.
Many city leaders and transportation advocates were not pleased.
“New York City is not Donald Trump’s fiefdom," said Brooklyn Borough President Antonio Reynoso. "In one short month, congestion pricing has delivered clear and measurable benefits for residents and visitors alike. Traffic is down, subway ridership is up, and businesses are seeing higher foot traffic. In the courts and in the streets, we will continue fighting – and winning – for congestion pricing and the well-being of New Yorkers. We got us.”
Millions of commuters need both decongested streets and major new federal investments in our public transit network," said Danny Pearlstein, policy and communications director for the nonprofit Riders Alliance.
"The program works and is increasingly popular with drivers who pay the toll in exchange for their precious time. Rather than again chase illusory shiny objects, New York leaders must couple it with reliable, new revenue sources that enable us to keep fixing our aging subway."
