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By Jesus Mesa and Gabe Whisnant
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President Donald Trump's administration on Wednesday ordered a halt to New York City's congestion pricing system, which was created to thin traffic and fund mass transit by imposing higher tolls on drivers entering some parts of Manhattan.
In a statement, U.S. Transportation Secretary Sean P. Duffy announced the federal government has rescinded its approval of the program, calling it "slap in the face to working class Americans and small business owners."
Duffy said his agency will work with the state on an "orderly termination of the tolls."
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Why It Matters
After launching in early January, the congestion pricing experiment reduced traffic in Manhattan's Central Business District by one million vehicles, according to the Metropolitan Transportation Authority (MTA) — a 7.5 percent drop from the same period last year.
The plan charged most drivers $9 to enter the city's most congested streets, aiming to cut traffic and pollution while generating billions for the MTA, which runs the region's mass transit system.
Travel times across major bridges and tunnels also improved by 34 percent, and some drivers who initially opposed the toll now support it, citing shorter and easier commutes.
What To Know
In a letter to New York Governor Kathy Hochul, the U.S. Department of Transportation revoked a November 2024 agreement under the Value Pricing Pilot Program (VPPP). This decision strips New York City of its authority to impose congestion tolls on drivers entering Manhattan below 60th Street.
The Trump administration cited two main reasons for ending the pilot program, arguing the program's scope was unprecedented, failing to provide a toll-free option for drivers, and that the toll rate was primarily set to generate revenue for public transit.
The decision comes just weeks after the program launched and despite early MTA data showing it was exceeding expectations.
President Trump, whose Trump Tower penthouse and other properties are located within the congestion zone, had promised to eliminate the plan once in office. His administration's move aligns with opposition from New Jersey Democratic Governor Phil Murphy and suburban lawmakers, who argue the toll unfairly burdens their constituents.
"New York State's congestion pricing plan is a slap in the face to working-class Americans and small business owners," Duffy wrote in his statement.
Duffy says that commuters already pay their fair share through existing transportation taxes and that congestion pricing unfairly penalizes them.
"Commuters using the highway system to enter New York City have already funded the construction and improvement of these highways through gas taxes and other taxes. Now, the toll program takes even more money from working people to fund a transit system, not highways. It's unfair and counterproductive."
Mixed Reactions
While congestion pricing gained support in NYC, it remained unpopular in the suburbs among commuters driving into Manhattan from New Jersey, Connecticut, Long Island and Westchester. The Trump administration sided with these critics, arguing that the toll would harm businesses by discouraging shoppers, tourists and workers from commuting into Manhattan.
Transit advocates, however, argue that congestion pricing was effective and is crucial for the long-term sustainability of New York's public transit system and for reducing gridlock. They view the rollback as politically motivated rather than based on sound policy.
"Republicans, including many New York Republicans, have targeted this program as part of their culture war on everything," said Jon Orcutt, a former policy director at the city's Department of Transportation.
Later Wednesday, the MTA said in a post on X that it filed papers in federal court against the Trump administration.
"It's mystifying that after four years and 4,000 pages of federally-supervised environmental review–and barely three months after giving final approval to the Congestion Relief Program–USDOT would seek to totally reverse course," the statement read.
What People Are Saying
**President Donald Trump on Truth Social: "**CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!"
Speaking about Trump's post after the decision to rescind approval for congestion pricing, Gov. Hochul said: "New York hasn't labored under a king in over 250 years. We sure as hell are not going to start now."
Duffy said the program disrupts commerce by increasing costs for trucks, potentially raising prices for consumers: "Every American should be able to access New York City, regardless of their economic means. It shouldn't be reserved for an elite few."
Jon Orcutt, a former policy director at the city's Department of Transportation, told Newsweek: "New York worked with the federal government for years. There were thousands of pages documenting all those negotiations and agreements. So, my strong hope is that Governor Hochul will go to court and keep congestion pricing running."
New York State Sen. Andrew Gounardes, a Democrat, on X: "By blocking this successful policy, Trump will be directly responsible for more traffic, more crashes, more polluted air, slower buses and less funding for our transit system. This means no new station elevators for elderly and disabled riders, and no new subway signals to speed up commutes for working New Yorkers."
What Happens Next
Given that congestion pricing has already been implemented and has legal backing from both state law and previous federal approvals under the Biden administration, New York authorities would likely challenge Trump's decision in court. They would argue that the program, once enacted, cannot be unilaterally ended by the new administration without due legal process.
Update: 2/19/25, 2:04 p.m. ET: This article has been updated with additional information.
Update: 2/19/25, 2:50 p.m. ET: This article has been updated with a comment from President Trump.
Update: 2/19/25, 7:39 p.m. ET: This article has been updated with a comment from Governor Hochul.
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