The Trump administration on Wednesday notified New York Gov. Kathy Hochul that it is moving to terminate New York City's congestion pricing program, a tolling scheme launched earlier this year that levies a $9 fee on most drivers entering Manhattan below 60th Street.
The program, which is slated to generate $15 billion in revenue for New York City's mass transit system, was a hard-fought victory for environmental groups, mass transit advocates, and New York's Metropolitan Transportation Authority (MTA). New York State Lawmakers approved the initiative in 2019 after which point it entered a multiyear federal approvals process.
Congestion pricing has been opposed by various groups and public figures, including the New Jersey governor, the labor union the United Federation of Teachers, and some lawmakers who represent voters in outer boroughs and the suburbs.
Democratic leaders in New York have vowed to fight the Trump administration's move and the MTA has already filed a lawsuit in federal court challenging the order.
In a letter to Hochul, Transportation Secretary Sean Duffy wrote that he and U.S. President Donald Trump have concerns about congestion pricing's impact on residents that use the tolled roads and that, in a reversal of a determination made by the previous administration in late November, the scheme is "not eligible" under the Federal Highway Administration's Value Pricing Pilot Program. By rescinding the agreement signed under the pilot program, the administration is aiming to effectively end the initiative's tolling authority.
Duffy called the program a "slap in the face to working-class Americans and small business owners," and separately, U.S. President Donald Trump took to his social media platform Truth Social on Wednesday to celebrate, writing: "CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!"
In response to the administration's aims to shut down the program, Hochul said Wednesday that "public transit is the lifeblood of New York City and critical to our economic future—as a New Yorker, like President Trump, knows very well."
"We are a nation of laws, not ruled by a king... We'll see you in court," said the Democratic governor, who was widely criticized for halting congestion pricing last year before it had launched. The program later did move ahead with cheaper tolls.
MTA chairman and CEO Janno Lieber said in a Wednesday statement that "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—[U.S. Department of Transportation] would seek to totally reverse course."
Rep. Jerry Nadler (D-N.Y.) called the arguments made in Duffy's letter "utterly baseless and frankly, laughable."
"The notion of revoking approval for a federal initiative of this magnitude is nearly without precedent. I firmly believe that there is no legal basis for the President to unilaterally halt this program," he said.
Rep. Dan Goldman (D-N.Y.) called Trump's rationale for the move "hypocritical and groundless"
According to The New York Times, legal experts have doubts about whether the federal government can shut down congestion pricing.
