The Federal Highway Administration, part of the U.S. Department of Transportation, announced on Wednesday that it is terminating New York’s congestion pricing initiative, just a month after its launch.
U.S. Transportation Secretary Sean Duffy communicated this decision in a letter directed to New York Governor Kathy Hochul, effectively withdrawing the previous endorsement of the Value Pricing Pilot Program (VPPP) that had implemented tolls for vehicles entering Manhattan.
In a bold declaration, the White House took to X to proclaim, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” This was accompanied by a playful image of Trump adorned with a crown on a faux TIME magazine cover.
The Federal Highway Administration described the program as “unprecedented” and pointed out that the absence of a toll-free option for drivers was a significant factor in its cancellation. Duffy further noted that the toll structure was designed to generate revenue for transportation rather than alleviate congestion, which he argued contradicts the goals of the VPPP.
New Jersey Governor Phil Murphy expressed gratitude to President Trump and Secretary Duffy for their decision. Meanwhile, Governor Hochul indicated that legal action against the President is already underway, stating, “We are a nation of laws, not ruled by a king,” in a response on X.
Here’s what you need to know.
When did NYC congestion pricing start?
Although the VPPP was initially approved by lawmakers in 2019, advocates had to await a federal environmental review. The program received the green light from the Biden Administration on November 21 of last year, but it wasn’t until January 5 that congestion pricing officially took effect.
The program’s initial rollout during the summer was halted in June due to concerns regarding its potential impact on the local economy. A revised version of the program subsequently reduced the toll from $15 to $9.
How is NYC congestion pricing funded?
Under the congestion pricing model, drivers incur a charge of $9 upon entering Manhattan’s Congestion Relief Zone, which is located below 60th Street, from 5 a.m. to 9 p.m. on weekdays. This means that drivers using the Brooklyn, Manhattan, Williamsburg, and Queensboro bridges, as well as the Holland, Hugh L. Carey, and Queens Midtown tunnels, would face the increased toll.
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The Federal Highway Administration stated that it would collaborate with project leaders to ensure a smooth termination of the tolls, although the timeline for this process remains unclear.
How has Hochul responded?
In reaction, New York’s Metropolitan Transportation Authority (MTA) filed a federal lawsuit on Wednesday to maintain the program. MTA Chair and CEO Janno Lieber expressed his confusion over the decision, noting, “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,” in a statement posted on X.
Hochul emphasized that this pioneering program has already positively impacted the city’s transportation infrastructure, citing improved commute times, increased “foot traffic” for local businesses, and a surge in yellow cab rides. She also mentioned an uptick in public transportation ridership in her statement on X.
“Congestion pricing is a meticulously studied, globally-proven program that is enshrined in New York State law,” stated Julie Tighe, President of the NY League of Conservation Voters. “We need the federal government to be a partner in solving congestion pricing, not a roadblock. New Yorkers deserve relief from traffic, better transit, and cleaner air—we will keep fighting for it every day.”
Can Trump stop congestion pricing?
Congestion pricing has faced legal challenges in the past, particularly from neighboring New Jersey, which argued that the program unfairly burdened its residents. On his first day in office, Murphy reached out to Trump, who had campaigned on a promise to end congestion pricing, urging the President to thoroughly review the initiative.
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However, some critics doubt whether the President has the authority to halt congestion pricing. Congressman Jerry Nadler, a Democrat from New York, lambasted the Department of Transportation, asserting that the agency lacks the power to suspend the program. “The Value Pricing Program is solidly established under federal law, and its approval cannot be arbitrarily revoked, especially when it is clearly delivering tangible benefits,” Nadler stated on X. “Mr. President, we’ll see you in court.”
The MTA described the Administration’s decision to terminate the program as unlawful, arguing that the Trump Administration acted without conducting an environmental review on the effects of pausing the VPPP. “If FHWA had the right to unilaterally terminate a VPPP program that had already been approved and implemented, it would create uncertainty around the future of such programs any time leadership at FHWA, USDOT, or the White House changed—uncertainty that may make it difficult to issue bonds for other projects and would clearly undermine the purposes of the VPPP,” the legal complaint states.