Categories: Economy

Trump to Halt NY Congestion Pricing by Pulling Federal Approval


(Bloomberg) — New York Metropolis’s new congestion pricing program is prone to be halted after the US Division of Transportation introduced its plan to reverse an earlier federal approval for the tolling initiative, a transfer that can most definitely face authorized challenges.

The Federal Freeway Administration is strolling away from an settlement signed in November below President Joe Biden that permits the Metropolitan Transportation Authority — which runs the town’s transit community — to cost drivers getting into Manhattan’s busiest streets, in keeping with an announcement from US Transportation Secretary Sean Duffy.

“New York State’s congestion pricing plan is a slap within the face to working class Individuals and small enterprise house owners,” Duffy mentioned in an announcement. “Each American ought to have the ability to entry New York Metropolis no matter their financial means. It shouldn’t be reserved for an elite few.”

The choice will seemingly halt the primary congestion pricing program within the US, and dangers ending it altogether. There have been 1.2 million fewer automobiles south of sixtieth road between Jan. 5 and Jan. 31, a 7.5% drop, in keeping with the MTA. The journey time for the Holland Tunnel, which connects New Jersey to decrease Manhattan, has been lower by practically half.

Congestion pricing is anticipated to boost $15 billion to modernize subway alerts from the Thirties, make extra stations accessible and prolong the Second Avenue subway to Harlem. With out that new income, the MTA and state lawmakers might want to discover another funding supply or postpone important infrastructure initiatives meant to enhance service and appeal to extra riders.

Duffy is anticipated to terminate an settlement referred to as a worth pricing pilot program that the Federal Freeway Administration entered into with the MTA and New York officers on Nov. 21. That program permits US transportation companies to scale back congestion on highways by tolling and different charges.

Roadways in Texas, Florida and California have used such agreements and reversing MTA’s personal pact with the FHWA may put different states’ offers in danger, Janno Lieber, the MTA’s chief government officer, mentioned on Jan. 31 at an occasion in New York Metropolis.

“Even in the event you’re a conservative Republican from pink state, that the concept that the federal authorities would summarily rescind agreements with states and localities — that has nationwide implications,” Lieber mentioned.

Trump’s transfer to finish congestion pricing will in all probability face authorized challenges. It’s seemingly the MTA and Kathy Hochul may file swimsuit towards the FHWA to reinstate congestion pricing. Riders Alliance, which advocates for extra dependable and inexpensive mass transit in New York Metropolis, took authorized motion final yr to advance the tolling program after Hochul quickly paused it in June and should battle towards Trump’s resolution.

“We might completely do every part we will to defend this system,” mentioned Danny Pearlstein, a spokesman for Riders Alliance.

Hochul contends that the federal authorities doesn’t have the authorized authority to dam this system. “It’s been established and all the necessities of the federal authorities have been met,” she mentioned in a February interview with NY1.

The toll started on Jan. 5, with E-ZPass passenger automobiles paying $9 throughout peak hours to drive south of sixtieth Road, with the West Aspect Freeway and the FDR Drive exempt from the cost. State lawmakers accepted the initiative in 2019 to scale back site visitors in one of the crucial congested city areas on the earth, enhance air high quality and supply the MTA one other funding supply for infrastructure funding.

–With help from Laura Nahmias.

©2025 Bloomberg L.P.

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