The Federal Highway Administration (FHWA), a division of the U.S. Department of Transportation, made headlines on Wednesday by announcing the cancellation of New York’s congestion pricing program, just one month after it was officially implemented.
U.S. Transportation Secretary Sean Duffy informed New York Governor Kathy Hochul of this decision through a letter, retracting prior support for the Value Pricing Pilot Program (VPPP), which aimed to impose tolls on vehicles entering Manhattan.
In a dramatic statement, the White House took to social media platform X to declare, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” This proclamation was paired with a humorous image of Trump sporting a crown on a mock TIME magazine cover.
The FHWA characterized the initiative as “unprecedented” and noted that the lack of a toll-free option for drivers was pivotal in its discontinuation. Duffy emphasized that the tolling framework was intended to generate funding for transportation rather than to alleviate traffic congestion, which he contended was contrary to the aims of the VPPP.
New Jersey Governor Phil Murphy expressed his appreciation to President Trump and Secretary Duffy for their decision. In contrast, Governor Hochul revealed that legal measures against the President are already in progress, asserting, “We are a nation of laws, not ruled by a king,” in her response on X.
Here’s what you should know.
When was NYC congestion pricing initiated?
Although the VPPP received legislative approval in 2019, advocates had to wait for a federal environmental assessment. The Biden Administration granted approval for the program on November 21 of last year, but it wasn’t until January 5 that congestion pricing officially began.
The initial launch of the program during the summer was paused in June amid concerns about its potential effects on the local economy. A revised version subsequently lowered the toll from $15 to $9.
How is NYC congestion pricing financed?
Under the congestion pricing scheme, drivers are charged $9 upon entering Manhattan’s Congestion Relief Zone, which extends below 60th Street, during weekdays from 5 a.m. to 9 p.m. This toll applies to drivers using the Brooklyn, Manhattan, Williamsburg, and Queensboro bridges, as well as the Holland, Hugh L. Carey, and Queens Midtown tunnels.
Read More: What the FAA Layoffs Mean for Air Safety
The FHWA indicated it would work with project leaders to ensure an orderly shutdown of the tolls, although the timeline for this process remains uncertain.
What is Hochul’s reaction?
In response, New York’s Metropolitan Transportation Authority (MTA) initiated a federal lawsuit on Wednesday to preserve the program. MTA Chair and CEO Janno Lieber expressed his bewilderment over the decision, stating, “It’s mystifying that after four years and 4,000 pages of federally-supervised environmental review—and merely three months after granting final approval to the Congestion Relief Program—USDOT would seek to completely reverse course,” in a statement on X.
Hochul highlighted that this innovative program has already yielded positive effects on the city’s transportation system, citing enhanced commute times, increased foot traffic for local businesses, and a rise in yellow cab rides. She also mentioned a boost in public transit ridership in her statement on X.
“Congestion pricing is a thoroughly researched, globally recognized approach that is enshrined in New York State law,” declared Julie Tighe, President of the NY League of Conservation Voters. “We need the federal government to collaborate in addressing congestion pricing, not act as an obstacle. New Yorkers deserve relief from traffic, improved transit options, and cleaner air—we will continue to advocate for this every day.”
Can Trump halt congestion pricing?
Congestion pricing has previously faced legal hurdles, especially from neighboring New Jersey, which contended that the program placed an unfair burden on its residents. On his first day in office, Murphy reached out to Trump, who had campaigned on a platform promising to eliminate congestion pricing, urging the President to reconsider the initiative thoroughly.
Read More: President Trump Suggests He’s Above the Law in Social Media Post Invoking Napoleon
However, some critics question whether the President has the legal authority to stop congestion pricing. Congressman Jerry Nadler, a Democrat from New York, criticized the Department of Transportation, arguing that the agency does not have the power to suspend the program. “The Value Pricing Program is firmly established under federal law, and its approval cannot be revoked arbitrarily, especially when it is clearly providing tangible benefits,” Nadler stated on X. “Mr. President, we’ll see you in court.”
The MTA characterized the Administration’s decision to terminate the program as unlawful, claiming that the Trump Administration acted without conducting an environmental review of the implications of halting the VPPP. “If FHWA had the authority to unilaterally terminate a VPPP program that had already been approved and implemented, it would create uncertainty around the future of such initiatives whenever leadership at FHWA, USDOT, or the White House changed—uncertainty that could complicate bond issuance for other projects and would clearly undermine the objectives of the VPPP,” the legal complaint states.
