The Trump administration moved Wednesday to kill the state-run congestion pricing in Manhattan just six weeks into its run.
The U.S. Department of Transportation (USDOT) penned a letter to Gov. Kathy Hochul on Wednesday saying it will end congestion pricing, the controversial tolling program that charges vehicles to enter Manhattan below and including 60th Street. It was launched in January after the Biden administration approved its start via a USDOT pilot program.
“The Federal Highway Administration today terminated approval of the pilot for New York’s Central Business District Tolling Program,” a federal press release stated on Feb. 19.
Transportation Secretary Sean Duffy cited several reasons in his letter to the governor for ending the program — alleging it provides no toll-free option for many drivers who want or need to travel by vehicle in the metro area. He also said the toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion.
“New York State’s congestion pricing plan is a slap in the face to working-class Americans and small business owners,” said Duffy in a statement. “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 said the feds would work with local agencies to develop a timeline for ending the toll program.
Duffy’s statement comes despite the fact that congestion pricing — since it took effect on Jan. 5 after two decades of planning, debate and federal approval during the Biden administration — has helped reduce congestion on Manhattan streets and increase ridership on subways, buses and commuter trains.
MTA chair and CEO Janno Lieber already filed papers in federal court on Wednesday aiming to keep the “highly successful” program active, calling the federal halt a “baseless effort to snatch benefits” such as reduced traffic, faster travel times and increased speeds for buses and emergency vehicles away from New Yorkers.
“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,” Lieber said.
Though it is unknown how much the MTA has reaped in tolls during congestion pricing’s short span, the MTA has repeatedly said the revenue generated from the program would help the authority fund key improvements to the city’s transit system and beyond.
Hochul released a statement in response to the federal letter, saying public transit is the “lifeblood” of NYC — Donald Trump’s hometown — and is critical to its economic future.
“Since this first-in-the-nation program took effect last month, congestion has dropped dramatically and commuters are getting to work faster than ever,” she said. “Broadway shows are selling out and foot traffic to local businesses is spiking. School buses are getting kids to class on time, and yellow cab trips increased by 10 percent. Transit ridership is up, drivers are having a better experience, and support for this program is growing every day.”
She added that the country is not “ruled by a king” but is a nation of laws.
“The MTA has initiated legal proceedings in the Southern District of New York to preserve this critical program. We’ll see you in court.”
Opponents celebrate, transit advocates take action
It is unknown right now when or if the MTA will stop collecting congestion pricing tolls. Local transit groups, however, are prepared to fight back the Trump administration’s edict in court.
“Public transit riders won congestion relief and are now enjoying faster and more reliable bus service from throughout New York and New Jersey,” said Betsy Plum, executive director of the Riders Alliance. “We organized for a decade, held two governors accountable, and prevailed in court in three states after years of exhaustive environmental studies. We are committed to maintaining and expanding on our victory and will defend it with everything we have.”
It was gaining widespread public support, too, even from skeptics critical of the program at first. It was also approved and passed by the NYS legislature, governor and MTA.
“The program was passed into law through democratically legitimate mechanisms, courts have repeatedly upheld congestion pricing after legal challenges, and they will do so again now,” Sara Linda, co-executive director of Open Plans in NYC, said. “Any attempt by Donald Trump to dismantle it is not only misguided and will prove unpopular but also oversteps his legal authority. We can’t let political gamesmanship stand in the way of cleaner air, less traffic, and better transit options for New Yorkers.”
NYC Comptroller Brad Lander, who was at the forefront at the advocacy for implementing congestion pricing, said he is “appalled” at federal government’s reversal of the plan.
“Having been at the forefront of the fight to implement congestion pricing, I am appalled that President Trump and his U.S. Department of Transportation put this in reverse, purely for political purposes,” Lander, who is also a candidate for mayor, said. “Let’s be clear: the USDOT properly approved this program after extensive environmental review. My Office will explore all available options to reverse yet another instance of illegal federal overreach by the Trump administration – and keep congestion pricing and New York City moving forward.”
Representatives from the MTA’s Permanent Citizens Advisory Committee (PCAC) said they condemn “in the strongest terms” the federal action.
“We can’t afford to reverse the transformative progress that New Yorkers are experiencing,” Lisa Daglian, executive director of PCAC, said. “We urge the USDOT to reinstate their approval of congestion pricing immediately. Otherwise, we’ll see you back in court.”
But congestion pricing was not without its fair share of critics since it was first launched–and well before then.
NYC Council Member Robert Holden of Queens, praised Trump for taking action to end the program, calling it a “victory” for New Yorkers.
“President Trump kept his promise to New Yorkers by stopping the unfair congestion pricing scheme, a scam tax that was unjust from the very start. This is a major victory for working- and middle-class families who were forced to shoulder another financial burden just to navigate their own city. New Yorkers deserve real solutions to traffic and transit issues—not another cash grab disguised as policy.”
Staten Island Borough President Vito Fossella, who filed a lawsuit last year aiming to block congestion pricing, applauded USDOT’s decision. He “emphatically” thanked Trump and Duffy for withdrawing the federal government’s approval of program.
“It was always a three-strike loser and a nonstarter for Staten Island. More traffic, more air pollution and more tolls,” the beep said. “The program was revived unceremoniously, at a politically opportune time for political reasons. To bring an end to the program is the right thing not just for Staten Island but for the City as a whole.”
He urged the MTA to follow Wednesday’s action by “turning off the toll readers and relieving Staten Island residents from this unnecessary and burdensome tax once and for all.”
