The federal government rescinded approval of New York City's congestion pricing plan, which charged tolls on vehicles driving below 60th Street.
The move was praised by trucking groups, but New York Gov. Kathy Hochul, who approved the plan after initially rejecting it, told the Trump administration, "We'll see you in court.
On Wednesday, the Federal Highway Administration terminated approval of the pilot for the tolling program, which was meant to ease congestion in the busiest part of Manhattan, curb emissions, and generate funds for the city's mass transit system.
In a letter to New York Governor Kathy Hochul, the Department rescinded a Nov. 21, 2024 agreement signed under the Value Pricing Pilot Program that effectively ends tolling authority for New York City’s cordon pricing plan.
In the letter, Secretary of Transportation Sean 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," said Duffy. "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.”
“Since this first-in-the-nation program took effect last month, congestion has dropped dramatically and commuters are getting to work faster than ever. Broadway shows are selling out and foot traffic to local businesses is spiking,” Hochul said in a statement posted to the social media platform X (formerly Twitter).
Trucking groups reacted to the federal government's decision to stop the tolling.
The Trucking Association of New York praised the federal government's actions.
"We stand with President Trump and Secretary Duffy in their efforts to end the congestion pricing program," said Kendra Hems, president of the association. "We agree with their decision to halt this program, and we hope it leads to an immediate cessation of the collection of tolls."
Hems also said that since the Metropolitan Transportation Authority has already filed a lawsuit against the actions of Trump and Duffy, her organization will continue with the lawsuit it filed in federal court months ago.
"Until there is a final decision on whether Trump can actually rescind the prior approval for congestion pricing, we plan to continue to keep our lawsuit active," said Hems.
American Trucking Associations President and CEO Chris Spear said, "“We commend President Trump and Secretary Duffy for terminating this disastrous tolling scheme.
"Truckers don't drive into Manhattan to sightsee. They do it because customers depend on them. The deliveries they make are essential to businesses and residents and keep New York City running.
“Truckers deserve our gratitude. Instead, New York imposed a $21.60 toll — eventually climbing to $36 — each time they crossed south of 60th Street. Even worse, the proceeds of this shakedown were not dedicated to improving roads and bridges but rather subsidized a bloated and mismanaged transit bureaucracy that has proven unable to control spiraling costs. New York’s subways were never going to deliver the city’s freight."
Spear also said ATA supports the Trucking Association of New York's efforts to fight the congestion pricing program, and said ending it will "remove an unjust hardship on truckers serving New York."
Owner-Operator Independent Drivers Association President Todd Spencer had a similar reaction.
“OOIDA and 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," Spencer said in a statement. "Truckers often have very little control over their schedules, so this congestion pricing plan is particularly problematic for owner-operators and independent drivers. We routinely have no other choice than to drive through metropolitan areas during periods of high congestion because of the rigidity of current federal hours of service requirements.
"Additionally, shippers and receivers generally have little regard for a driver’s schedule, frequently requiring loading and unloading to occur at times when nearby roads are most congested. New York City’s congestion pricing plan was anti-trucker to begin with and we will continue fighting to ensure it doesn’t come back. Beyond New York City, we encourage the Trump Administration and Congress to fight the expansion of tolling across the country."
