Trump Administration Halts NYC Congestion Pricing Program
Background
New York City’s congestion pricing plan, approved by the Federal Highway Administration (FHWA) in 2021, aimed to reduce traffic congestion by charging tolls for vehicles entering Manhattan south of 60th Street. The program faced legal challenges and criticism from elected officials, businesses, and commuters.
Trump Administration’s Action
In November 2023, U.S. Transportation Secretary Sean Duffy sent a letter to New York Governor Kathy Hochul, stating that the FHWA’s approval of the pilot program was "not authorized by law." Duffy argued that the "cordon pricing" method, which charged tolls regardless of the roads used, exceeded the authority granted under the Value Pricing Pilot Program (VPPP).
Legal Basis
Duffy cited a provision in the VPPP that prohibits tolling on highways without a free alternative. He argued that the NYC congestion pricing plan provided no such option for drivers who needed to travel by vehicle in the designated area.
Economic Impact
Duffy further stated that the program "hurts small businesses in New York that rely on customers from New Jersey and Connecticut." He also expressed concern that the increased costs for trucks could raise consumer prices.
Response from New York Officials
Governor Hochul and MTA Chair Janno Lieber condemned the Trump administration’s move, claiming that it was a political attack on New York City. Hochul announced that the MTA had filed a lawsuit to ensure the program’s continuation.
Political Support
The Trump administration’s action drew praise from Republican elected officials and critics of the congestion pricing plan. New York City councilman Bob Holden hailed it as a "victory for working- and middle-class families."
Industry Support
The Owner-Operator Independent Drivers Association also welcomed the decision, stating that congestion pricing was particularly problematic for truckers who had limited control over their schedules.
Next Steps
The FHWA will contact the New York State Department of Transportation to facilitate the orderly termination of the program. However, the MTA’s lawsuit could prolong the legal battle.
Conclusion
The Trump administration’s decision to block the NYC congestion pricing program highlights the ongoing debate over the role of tolls in managing traffic congestion. While supporters argue that pricing mechanisms can reduce congestion and raise revenue for transportation infrastructure, opponents maintain that they unfairly burden drivers and businesses. The outcome of the MTA’s lawsuit will likely shape the future of congestion pricing in New York City and beyond.
