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

The U.S. Department of Transportation is withdrawing its support for New York City's controversial congestion pricing plan and will discuss with the state and stakeholders how to end the program, the agency announced Wednesday.

The department released a letter from Secretary Sean Duffy it said it sent to Gov. Kathy Hochul regarding its decision to "terminate" approval of the congestion pricing pricing program, which it had originally granted on Nov. 21 under the Biden administration.

"New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners," the letter from the DOT read. "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."

Duffy said the congestion pricing program is beyond the scope of the approval for a "Value Pricing Pilot Program" authorized by Congress, in part, because it appears to be "driven primarily by the need to raise revenue for the Metropolitan Transit Authority (MTA) system as opposed to the need to reduce congestion."

DOT boss Duffy said his department would work with New York state officials to "discuss the orderly cessation of toll operations under this terminated pilot project." If the federal government succeeds in killing congestion pricing, it was not clear when the tolls would stop being collected.

MTA Chair and CEO Janno Lieber said the agency is ready to fight the administration and has filed papers in federal court to keep the program going.

"Today, the MTA filed papers in federal court to ensure that the highly successful program – which has already dramatically reduced congestion, bringing reduced traffic and faster travel times, while increasing speeds for buses and emergency vehicles – will continue notwithstanding this baseless effort to snatch those benefits away from the millions of mass transit users, pedestrians and, especially, the drivers who come to the Manhattan Central Business District," Lieber said in a statement. "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.”

"We're not turning off the tolls," Lieber said in a news conference Wednesday afternoon.

Until a federal judge rules on the case, the congestion pricing cameras will stay on, the governor's legal counsel said.

Following the decision by his Transportation Department, President Donald Trump posted on Truth Social, "CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!"

Hochul said congestion had dropped since the start of the pricing plan and commute times have gone down.

"Broadway shows are selling out and foot traffic to local businesses is spiking. School buses are getting kids to class on time, and yellow cab trips increased by 10 percent. Transit ridership is up, drivers are having a better experience, and support for this program is growing every day," Hochul said in a statement. "We are a nation of laws, not ruled by a king. The MTA has initiated legal proceedings in the Southern District of New York to preserve this critical program."

"We'll see you in court," she added.

It's not clear how long a court process may take, nor whether congestion pricing would proceed as the legal battles ensued.

"I don’t care if you like congestion pricing or not, this is an attack on our sovereign identity," said Hochul. "It feels like commuters are now the roadkill on Donald Trumps revenge tour against New York."

New Jersey officials have argued it’s an unfair tax for their residents and that it would increase traffic and pollution in their state. Gov. Phil Murphy, a Democrat who is opposed to New York's congestion pricing and took the plan to court previously, praised the decision by Trump and Duffy.

“While I have consistently expressed openness to a form of congestion pricing that meaningfully protects the environment and does not unfairly burden hardworking New Jersey commuters, the current program lines the MTA’s pockets at the expense of New Jerseyans," Murphy said in a statement.

The developments are not unexpected. Over the weekend, the president reportedly gave exclusive comments to the New York Post in which he referenced recent conversations with Hochul and touted his ability to kill the plan.

While many drivers might celebrate the end of the $9 peak toll that's only been in place for seven weeks, others have enjoyed a noticeable reduction in traffic.

The MTA has already been banking on major projects to be paid for by the revenue from congestion tolling -- from the extension of the Second Avenue subway to modern signals for older subway lines to accessibility projects, like elevators at more stations.

In his letter, Duffy said it did not appear that there would be any "substantial" costs to the physical stoppage of congestion pricing.