The Trump administration on Wednesday moved to block New York City's congestion pricing program, citing concerns over its legality and impact on working-class Americans. In a letter to New York Governor Kathy Hochul, U.S. Transportation Secretary Sean Duffy stated that the Federal Highway Administration's (FHWA) approval of the tolling initiative was "not authorized by law" and would be rescinded.
"New York State's congestion pricing plan is a slap in the face to working-class Americans and small business owners," Duffy wrote. "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 congestion pricing plan, officially known as the Central Business District Tolling Program (CBDTP), was approved in November 2024 as part of the federal Value Pricing Pilot Program, which allows states to implement congestion-reducing tolls in specific urban areas. Under the program, drivers entering Manhattan south of 60th Street during peak hours would have been charged $9, with the funds designated for public transit improvements.
Duffy's letter argued that the program oversteps the legal authority granted by Congress under the Value Pricing Pilot Program. "No statue contemplates cordon pricing in a situation where tolls are inescapable," he wrote, emphasizing that drivers lack a toll-free alternative to enter Manhattan.
The decision to halt the program has reignited a fierce political and legal battle. The Metropolitan Transportation Authority (MTA), which administers the congestion pricing plan, responded swiftly, filing papers in federal court to block the administration's move. "After four years and 4,000 pages of federally supervised environmental review-barely three months after receiving final approval-USDOT is now seeking to totally reverse course," MTA Chair and CEO Janno Lieber said. He argued that the program had already "dramatically reduced congestion, bringing reduced traffic and faster travel times, while increasing speeds for buses and emergency vehicles."
Critics of the congestion pricing scheme applauded the administration's decision. Rep. Nicole Malliotakis, R-N.Y., a vocal opponent of the program, thanked Trump and Duffy for intervening. "Today's actions are a victory for hardworking, taxpaying commuters who have been unfairly burdened by this toll," she said. "We will continue to fight against such policies that treat New Yorkers like bottomless ATMs."
New York City Councilman Bob Holden, a Democrat representing Queens, also praised the move, calling the congestion pricing program a "scam tax that was unjust from the very start." He added, "This is a major victory for working- and middle-class families who were forced to shoulder another financial burden just to navigate their own city."
New Jersey Governor Phil Murphy had previously expressed strong opposition to the tolls, arguing they unfairly targeted New Jersey commuters traveling into Manhattan for work. The New Jersey Department of Transportation had filed legal challenges against the program, citing its economic burden on out-of-state drivers.
The program had also faced opposition from trucking organizations. Todd Spencer, president of the Owner-Operator Independent Drivers Association, said that "the thousands of small business truckers who operate in New York City welcome USDOT's decision to rescind tolling authority for New York's congestion pricing plan." He argued that truck drivers "often have very little control over their schedules" and could not avoid peak-hour tolls, making the plan "particularly problematic for owner-operators and independent drivers."
The congestion pricing initiative had been a key part of New York's strategy to fund improvements to its aging transit infrastructure. The MTA projected that the tolls would generate billions of dollars for subway and bus system upgrades, reducing reliance on state and city funding.
Governor Hochul, who had previously delayed the program's implementation, has not yet publicly responded to the administration's move. A spokesperson for her office did not immediately return a request for comment.
Trump, who has long criticized the congestion pricing plan, vowed during his campaign to reverse the tolls once in office. His Manhattan residence, Trump Tower, is located within the congestion pricing zone, adding another layer of personal interest to his opposition.
