The Trump administration is pulling federal approval of New York City’s controversial congestion toll on drivers in Midtown Manhattan only weeks after the long-delayed program was finally implemented.
Transportation Secretary Sean Duffy wrote a letter to New York Governor Kathy Hochul (D) informing her that the federal highway administration is terminating its approval of the congestion pricing program.
“New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” Duffy said in a statement.
“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,” Duffy added.
“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 congestion toll came into effect last month, imposing a $9 charge on drivers entering Manhattan below 60th street. The tax will increase by $3 increments in 2028 and 2031 as drivers adjust to the program, if it remains in place.
Duffy is rescinding the FHWA’s November agreement to allow the congestion tax under the value pricing pilot program for failing to meet its eligibility standards. The VPPP allows for certain federally funded highway programs to be tolled, but Duffy explains that the Big Apple’s congestion pricing does not conform to the narrow exception. New York’s program does not give drivers a toll-free option and it functions to raise revenue for the Metropolitan Transit Authority, rather than to reduce congestion in its own right.
Initial MTA data suggests the congestion toll has reduced traffic beneath 60th street in the short period of time it has been in effect. Despite that, Duffy asserts that the congestion tax’s rates are determined by the MTA’s revenue targets, not the impact on congestion.
In the letter, Duffy cites the concerns voiced by New Jersey Governor Phil Murphy (D) and Transportation Commissioner Fran O’Connor. The Garden State has fought in court to prevent the congestion pricing scheme from coming into effect, as it would heavily tax Jersey residents commuting into Manhattan.
“CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” President Trump said on Truth Social. Trump’s real estate portfolio includes properties in the area covered by congestion pricing, and his Queens upbringing naturally lends itself to skepticism of congestion pricing.
New York Republican lawmakers representing areas celebrated the Trump administration’s move and blasted Hochul for imposing a tax on working Americans with her congestion toll.
“I want to extend my sincere thanks to President Trump and his Administration for taking swift and decisive action to suspend Kathy Hochul’s disastrous congestion pricing scheme,” said Representative Mike Lawler (R., N.Y.), whose district is slightly north of New York City.
“This is a huge win for New York families, commuters, and small businesses ruthlessly targeted by this unjust tax.”
“President Trump is a New Yorker who understands the negative impact this additional toll had on my constituents, local businesses and our city’s economy. Since I began speaking about the congestion tax with the President last May, he repeatedly reiterated his commitment to halt this cash grab upon taking office and we’re pleased that he has found a legal avenue to follow through,” said Representative Nicole Malliotakis (R., N.Y.), who represents parts of Staten Island and Brooklyn.
The MTA immediately filed a lawsuit in Manhattan federal court challenging Duffy’s decision to axe the congestion toll, naming Duffy, FHWA director Gloria Shepherd, and their agencies in the court papers.
“Today, the MTA filed papers in federal court to ensure that the highly successful program – which has already dramatically reduced congestion, bringing reduced traffic and faster travel times, while increasing speeds for buses and emergency vehicles – will continue notwithstanding this baseless effort to snatch those benefits away from the millions of mass transit users, pedestrians and, especially, the drivers who come to the Manhattan Central Business District,” MTA CEO Janno Lieber said in a defiant statement.
Hochul has yet to address Duffy’s letter.