Trump administration rescinds approval of New York's congestion pricing program

President Donald Trump on Wednesday declared New York’s congestion pricing "dead" as his new transportation secretary rescinded federal approval for the controversial tolling program, widely derided by Long Islanders, just six weeks after it took effect.

But the Metropolitan Transportation Authority quickly filed a lawsuit, sparking the latest legal battle over the first-in-the-nation congestion pricing program, which state officials said would remain in place pending a court ruling.

"CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED," Trump wrote on Truth Social Wednesday afternoon. "LONG LIVE THE KING!"

Gov. Kathy Hochul fired back, saying at an afternoon news conference, "The cameras are staying on," referring to the equipment used to scan license plates and bill motorists driving into the toll zone.

"I’m very confident we will be successful ... We are not subservient to a king or anyone else out of Washington," Hochul said.

In a letter sent Tuesday to Hochul, U.S. Secretary of Transportation Sean Duffy said, after reviewing New York’s Central Business District Tolling Program at the direction of Trump, he was rescinding the Federal Highway Administration’s approval of congestion pricing and "terminating the agreement" between New York and the federal government that allowed for the tolls to be implemented in January.

Duffy offered several reasons for his decision, including that the toll revenue being generated from congestion pricing is being directed to the MTA’s transit system, rather than the highways.

"I do not believe that this is a fair deal," Duffy wrote. "I share the President's concerns about the impacts to working-class Americans who now have an additional financial burden to account for in their daily lives."

If held up in court, the Trump administration’s decision could spell a quick end to a plan fiercely debated among New York policymakers and voters for decades. Approved by the State Legislature in 2019, New York’s congestion pricing plan charges most vehicles $9 for driving below 60th Street in Manhattan, with the goals of reducing traffic, improving air quality and funding transit investments.

Federal officials approved the plan in June 2023. The tolls, originally set at $15, were scheduled to take effect last June, but Hochul ordered an 11th hour "temporary pause," citing affordability concerns. Days after Trump’s election, she brought back the plan with a reduced $9 toll and received final approval from President Joe Biden’s administration on Nov. 24.

Trump had long signaled his disdain for congestion pricing, vowing on the campaign trail last May that he would "terminate" the plan, which he called a regressive tax that would hurt New York’s economy. Elected officials, including Democratic New Jersey Gov. Phil Murphy, urged Trump to follow through on his promise but Hochul, in conversations with Trump since he took office last month, implored him to leave the plan in place.

Justifying his decision, Duffy noted the 1991 federal law that was the basis for New York’s congestion pricing plan did not strictly define what constitutes a "value pricing pilot program," as was previously approved by federal officials. Left to "narrowly construe" the definition, Duffy determined the MTA’s plan does not fit the bill, in part because the plan "appears to be driven primarily by the need to raise revenue for the ([MTA)] ... as opposed to the need to reduce congestion."

Duffy also cited a legal claim raised by the Town of Hempstead in its ongoing lawsuit challenging congestion pricing. As the town argued, the tolling plan violated federal law because it does not allow a toll-free option for drivers "who want or need to travel by vehicle in this major urbanized area," according to Duffy.

Murphy, on X, thanked Trump for halting the plan, which he said "lines the MTA’s pockets at the expense of New Jerseyans."

Anticipating the move, Hochul said the MTA "filed a lawsuit within minutes," and is confident of success.

"If in some world, they are successful, the next time you’re stuck in traffic, the next time your train is delayed, the next time you're at a flooded station because infrastructure repairs were not made, I want you to think of this," Hochul said, holding up a photo of Trump.

The president, in comments to reporters on Air Force One Wednesday evening, decried congestion pricing.

"Suppose you work at a shoe shop, or you worked at a restaurant as a waiter, and you have to come into Manhattan and they’re taking many, many dollars out of your pocket," Trump said. " … If you take a look, traffic will go down because people aren’t going to come. if people don’t come the whole place is going to be a disaster."

MTA chairman and CEO Janno Lieber called the federal decision "mystifying," and noted it followed "four years and 4,000 pages of federally supervised environmental review."

The decision was immediately blasted by congestion pricing supporters and praised by opponents.

Republicans supported the decision.

"Congestion pricing poured gasoline on an already raging affordability crisis," Assemb. Will Barclay (R-Pulaski), the minority leader, said. "Anyone who truly cares about affordability should be celebrating. New Yorkers deserve solutions that ease their struggles, not add to them."

Hempstead Town Supervisor Donald X. Clavin Jr. called it "a great win ... for commuters, for first responders, for firefighters, for teachers, for people who were stuck with this cash grab." 

And Nassau County Executive Bruce Blakeman said, rather than further charging motorists, the MTA should make sure "people pay their fares" and have "cleaner ... safer subway systems."

A 2023 Siena College survey found nearly three-quarters of registered voters on Long Island opposed congestion pricing. 

However, MTA officials have noted since the tolls took effect in early January, even some opponents have been won over by reduced traffic and faster travel times.

"Six weeks in, there’s no question that congestion pricing is working," said Lisa Daglian, executive director of the MTA’s Permanent Citizens Advisory Committee, which includes the LIRR Commuter Council, in a statement.

Daglian added the MTA’s plan "went through a yearslong, extremely thorough environmental review process" and "multiple judges have ruled in favor of the program’s legality."

Kate Slevin, executive vice president of the Regional Plan Association, which advocates for sensible planning in the tristate area, said the Trump administration’s "hasty obstruction" undercuts the many benefits of the plan, including "faster commutes, less traffic, and increased safety on streets" and a 51% drop in crash-related injuries in the congestion relief zone since the tolls took effect.

With Laura Figueroa Hernandez, Michael Gormley and Bahar Ostadan

By Alfonso A. Castillo

alfonso.castillo@newsday.com@alfonsoreports

Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.