The US Department of Transportation’s Federal Highway Administration (FHA) has rescinded support for the Metropolitan Transportation Authority (MTA)’s New York City congestion pricing plan.
The FHA has withdrawn an agreement previously signed under the Value Pricing Program (VPPP) in November 2024, removing the MTA’s authority to continue with the congestion plan’s operation.
entering what had been the most congested district in the country
In a letter sent to New York Governor Kathy Hochul, the US Transportation Secretary, Sean P. Duffy, instructed that the pilot be terminated due to its ‘unprecedented scope’ and lack of provision of toll-free options for drivers lacking other options, as well as its plan to raise revenue for transit, rather than reduce congestion (which, the Department of Transportation states, ‘runs contrary to the purpose of the VPPP’).
Secretary Duffy said:New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners.
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. The program also hurts small businesses in New York that rely on customers from New Jersey and Connecticut. Finally, it impedes the flow of commerce into New York by increasing costs for trucks, which in turn could make goods more expensive for consumer.
Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few.
The pricing plan, which charges motorists entering Manhattan below 60th Street (formally known as the Central Business District – now also known as the Congestion Relief Zone (CRZ)), has been in effect since January.
Speaking at a press conference shortly after the letter’s delivery, Governor Hochul, joined by MTA Chairman and CEO, Janno Lieber, provided an update on the City’s response to the Department of Transportation’s withdrawal, noting that the termination of the congestion pricing plan is “an attack on [New York City’s] sovereign identity”.
Governor Hochul said:At 1:58 p.m., President Donald Trump tweeted, “Long live the king.” I'm here to say, New York hasn't labored under a king in over 250 years and we sure as hell are not going to start now.
The streets of this city, where battles were fought; we stood up to a king. And we won then. And in case you don't know New Yorkers, when we're in a fight, we do not back down. Not now, not ever. Because, who are we fighting for here? We're fighting for our residents, our commuters, our riders, our drivers, our emergency personnel. Life has gotten better for those who have asthma. People with illness. That's who we're fighting for.
And the six million people who use the MTA to get to their jobs and their lives and to their doctorate: nurses, doctors, EMTs and all those that need to get to their jobs in a reliable way, they're now going to be affected.
In response to the pilot project’s termination, Hochul announced the filing of a lawsuit ‘within minutes’, stating that the plan would remain in operation until such time as a judge has passed a verdict on the matter, despite insistence from the FHA.
Governor Hochul continued:We're in fight mode within seconds of us getting this notification. Our MTA was prepared. We knew this could come and filed a lawsuit within minutes. I'm very confident we will be successful. And I also want to say, the cameras are staying on. We are keeping the cameras on. Lights, cameras, action. They're staying on.
Speaking of the benefits of the pricing plan, Lieber detailed just some of the benefits stemming from the plan’s first month and a half of operation, noting a 9% decrease in overall traffic throughout January, 1.2 million fewer vehicles entering the Central Business District (CBD), reduced fatality numbers and shorter express bus journey times.
In a series of reports published shortly after the congestion pricing plan’s introduction, data also highlighted an overall reduction in crashes, increased public transit ridership and overall improvements in condition throughout the CBD.
MTA Chairman and CEO, Janno Lieber, said:It's mystifying that after four years of environmental study, a 4,000 page environmental review, that the US DOT would seek to reverse course. So we're doing — I just want to reinforce what the governor said — we're doing exactly what the federal government asked of New York and everybody.
We are doing a thoughtful, local solution. I thought the Republican Party was in favor of local control. I thought the Republican Party was in favor of local control. And so, as you said, Real World New York, a new episode tells you at our density nine times Phoenix or Houston, one of those Sunbelt cities. We don't have enough room to have everybody come to our streets in a car, we just don't have enough room.
So as the Governor said that within moments of receiving that letter, we responded with a lawsuit which says number one, we’re seeking a declaratory judgment that this is not proper, and number two, we’re not turning off the tolls until there’s a verdict.
