The U.S. Department of Transportation’s Federal Highway Administration announced on Wednesday that it is halting New York’s congestion pricing program, just a month after it was put into action.
Transportation Secretary Sean Duffy conveyed this decision in a letter addressed to Governor Kathy Hochul, effectively retracting the earlier support for the Value Pricing Pilot Program (VPPP) that introduced tolls for vehicles entering Manhattan.
In a striking statement, the White House took to X to declare, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” They accompanied this announcement with a humorous image of Trump wearing a crown on a mock TIME magazine cover.
The Federal Highway Administration labeled the initiative as “unprecedented” and highlighted that the lack of a toll-free option for drivers was a key reason for its termination. Duffy further pointed out that the toll structure aimed to generate revenue for transportation rather than reduce congestion, which he believed contradicted the VPPP’s objectives.
New Jersey Governor Phil Murphy expressed his appreciation to President Trump and Secretary Duffy for their decision. In contrast, Governor Hochul indicated that legal action against the President is already in motion, emphasizing, “We are a nation of laws, not ruled by a king,” in a post on X.
Here’s what you should know.
When did NYC congestion pricing begin?
Although the VPPP received legislative approval in 2019, advocates had to wait for a federal environmental review. The Biden Administration gave the program the go-ahead on November 21 of last year, but congestion pricing officially commenced on January 5.
The initial rollout of the program was paused in June due to concerns about its potential effects on the local economy. A revised version later adjusted the toll from $15 to $9.
How is NYC congestion pricing funded?
Under the congestion pricing model, drivers face a $9 fee when entering Manhattan’s Congestion Relief Zone, which is located below 60th Street, during weekdays from 5 a.m. to 9 p.m. This means that drivers crossing the Brooklyn, Manhattan, Williamsburg, and Queensboro bridges, as well as the Holland, Hugh L. Carey, and Queens Midtown tunnels, will incur the additional toll.
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The Federal Highway Administration announced plans to work with project leaders to ensure an orderly conclusion of the tolls, although the timeline for this process remains unspecified.
How has Hochul reacted?
In response, New York’s Metropolitan Transportation Authority (MTA) filed a federal lawsuit on Wednesday to preserve the program. MTA Chair and CEO Janno Lieber expressed confusion regarding the decision, stating, “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 shared on X.
Hochul stressed that this groundbreaking program has already yielded positive outcomes for the city’s transportation system, citing better commute times, increased foot traffic for local businesses, and a rise in yellow cab usage. She also noted a boost in public transportation ridership in her comments on X.
“Congestion pricing is a thoroughly studied, globally-proven initiative that is enshrined in New York State law,” asserted Julie Tighe, President of the NY League of Conservation Voters. “We need the federal government to be a partner in addressing congestion pricing, not an obstacle. New Yorkers deserve relief from traffic, improved transit options, and cleaner air—we will continue advocating for it every day.”
Can Trump halt congestion pricing?
Congestion pricing has previously encountered legal challenges, particularly from neighboring New Jersey, which claimed the program unfairly impacted its residents. On his first day in office, Murphy contacted Trump, who had campaigned on a promise to abolish congestion pricing, urging the President to carefully reassess the initiative.
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However, some critics are skeptical about whether the President has the legal power to stop congestion pricing. Congressman Jerry Nadler, a Democrat from New York, criticized the Department of Transportation, asserting that the agency lacks the authority to suspend the program. “The Value Pricing Program is firmly 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 characterized the Administration’s move to terminate the program as unlawful, claiming that the Trump Administration acted without conducting an environmental review of the consequences of halting 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 whenever leadership at FHWA, USDOT, or the White House changes—uncertainty that may complicate bond issuance for other projects and would clearly undermine the purposes of the VPPP,” the legal complaint asserts.