The Federal Highway Administration, a division of the U.S. Department of Transportation, announced on Wednesday that it would be discontinuing New York’s congestion pricing program, merely a month after it had been rolled out.
In a letter addressed to New York Governor Kathy Hochul, U.S. Transportation Secretary Sean Duffy communicated the decision, retracting the prior support for the Value Pricing Pilot Program (VPPP), which had introduced tolls for vehicles entering Manhattan.
In a striking announcement, the White House took to X to declare, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” This proclamation was accompanied by a satirical image of Trump, wearing a crown and featured on a mock TIME magazine cover.
The Federal Highway Administration labeled the program as “unprecedented” and noted that the lack of a toll-free alternative for drivers played a crucial role in its cancellation. Duffy emphasized that the toll framework was set to generate income for transportation rather than to ease congestion, which he argued was counter to the VPPP’s objectives.
New Jersey Governor Phil Murphy expressed his appreciation to President Trump and Secretary Duffy for their decision. Conversely, Governor Hochul indicated that legal action against the President is already in progress, asserting, “We are a nation of laws, not ruled by a king,” in her response on X.
Here’s a breakdown of the situation.
What was the timeline for NYC’s congestion pricing?
Although the VPPP received legislative approval in 2019, advocates had to wait for a federal environmental review. The Biden Administration granted approval on November 21 of the previous year, but congestion pricing only officially commenced on January 5.
The program’s initial launch was paused in June due to worries about its potential effects on the local economy. A subsequent modified version of the program reduced the toll from $15 to $9.
How is NYC congestion pricing structured financially?
Under the congestion pricing framework, drivers are charged $9 when entering Manhattan’s Congestion Relief Zone, located below 60th Street, during weekdays from 5 a.m. to 9 p.m. This increase in tolls applies to drivers utilizing the Brooklyn, Manhattan, Williamsburg, and Queensboro bridges, as well as the Holland, Hugh L. Carey, and Queens Midtown tunnels.
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The Federal Highway Administration stated it would work alongside project leaders to ensure an orderly cessation of the tolls, though the timeline for this process remains uncertain.
What is Hochul’s stance on the termination?
In response, New York’s Metropolitan Transportation Authority (MTA) filed a federal lawsuit on Wednesday seeking to preserve the program. MTA Chair and CEO Janno Lieber expressed bewilderment regarding the decision, stating, “It’s baffling that after four years and 4,000 pages of federally-supervised environmental review—and barely three months after final approval of the Congestion Relief Program—USDOT would choose to completely reverse course,” as he mentioned in a statement on X.
Hochul underscored that this innovative program has already yielded positive effects on the city’s transportation system, pointing to improved commute times, increased “foot traffic” for local businesses, and a rise in yellow cab rides. She also highlighted a boost in public transportation usage in her statement on X.
“Congestion pricing is a thoroughly researched, globally recognized program that is embedded in New York State law,” asserted Julie Tighe, President of the NY League of Conservation Voters. “We need the federal government to collaborate in addressing congestion pricing, not obstruct it. New Yorkers deserve relief from traffic, enhanced transit options, and cleaner air—we will continue to advocate for this every day.”
Is Trump able to halt congestion pricing?
Congestion pricing has previously encountered legal challenges, particularly from neighboring New Jersey, which claimed that the program disproportionately affected its residents. On his first day in office, Murphy reached out to Trump, who campaigned on a vow to eliminate congestion pricing, urging him to scrutinize the initiative closely.
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However, some critics question whether the President has the authority to stop congestion pricing. Congressman Jerry Nadler, a Democrat from New York, criticized the Department of Transportation, arguing that the agency does not possess the power to terminate the program. “The Value Pricing Program is firmly established under federal law, and its approval cannot be revoked arbitrarily, especially when it is evidently providing tangible benefits,” Nadler stated on X. “Mr. President, we’ll see you in court.”
The MTA characterized the Administration’s decision to end the program as unlawful, contending that the Trump Administration acted without performing an environmental assessment of the consequences of halting the VPPP. “If FHWA had the authority to unilaterally terminate a VPPP program that had already been approved and implemented, it would create uncertainty regarding the future of such programs whenever there is a leadership change at FHWA, USDOT, or the White House—uncertainty that could complicate the issuance of bonds for other projects and would clearly undermine the objectives of the VPPP,” the legal complaint states.
