President Donald Trump's administration on Wednesday ordered a halt to New York City’s congestion pricing system, which thins traffic and funds mass transit by imposing high tolls on drivers entering some parts of Manhattan.
Launched on Jan. 5, the city’s system uses license plate readers to impose a $9 toll on most vehicles entering Manhattan neighborhoods south of Central Park. In its early days, transit officials say the toll has brought modest but measurable traffic reductions.
In a statement, U.S. Transportation Secretary Sean P. Duffy announced the federal government has rescinded its approval of the program, calling it “slap in the face to working class Americans and small business owners.”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.”
President Trump on Wednesday made good on a campaign promise to do away with the MTA's controversial congestion pricing program in Manhattan, but it's not a done deal just yet. NBC New York's Rana Novini and Chris Jose report.
Hochul said she's ready to fight the administration's decision in court.
"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.
The Metropolitan Transportation Authority (MTA) said it is heading to court over the DOT withdrawal of its congestion pricing approval.
“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. 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," MTA Chair and CEO Janno Lieber said in a statement.
Trump, whose namesake Trump Tower penthouse and other properties are within the congestion zone, had vowed to kill the plan as soon as he took office. He previously characterized it as a massive, regressive tax, saying “it will be virtually impossible for New York City to come back as long as the congestion tax is in effect.”
Similar tolling programs intended to force people onto public transit by making driving cost-prohibitive have long existed in other global cities, including London, Stockholm, Milan and Singapore, but the system had never before been tried in the U.S.
Reaction to congestion pricing decision by Trump administration
The Trump administration order set off a wave of reaction from congestion pricing supporters and critics.
New Jersey Gov. Phil Murphy, a Democrat, had fought the tolls and court and wrote a letter Trump on Inauguration Day imploring him to kill the program.
"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 Wednesday.
“Although we have had a difference of opinion with our colleagues in New York on congestion pricing, we have always had a productive relationship with our neighbors across the Hudson. I look forward to continuing that spirit of partnership for the benefit of the entire Tri-State Area," the New Jersey governor added.
Staten Island Borough President Vito Fossella thanked the Trump administration for its decision.
"It was always a three-strike loser and a nonstarter for Staten Island - more traffic, more air pollution and more tolls. The program was revived unceremoniously, at a politically opportune time for political reasons. To bring an end to the program is the right thing not just for Staten Island but for the City as a whole. The MTA should follow this action by turning off the toll readers and relieving Staten Island residents from this unnecessary and burdensome tax once and for all," Fossella said in a statement.
Rep. Jerry Nadler, D-N.Y., said the federal government's rationale for rescinding its approval of congestion pricing as "utterly baseless and frankly, laughable" in a statement.
"The arguments presented by the US DOT against congestion pricing are utterly baseless and frankly, laughable. Congestion pricing has not only consistently withstood significant legal challenges, emerging victorious in every court decision to date, but it has also become immensely popular among New Yorkers, delivering on its promises—less traffic, fewer crashes, and reduced noise pollution, all contributing to safer, quieter streets," Nadler said.
"Mr. President, we’ll see you in court," the New York congressman said.
GOP Rep. Mike Lawler called the DOT's decision a "win" for New Yorkers.
"This is a huge win for New York families, commuters, and small businesses ruthlessly targeted by this unjust tax.” “Make no mistake: this entire program is nothing more than a scam — a money grab — and is the symptom of a far deeper, systemic issue in our state - government overreach and rampant mismanagement at the hands of Kathy Hochul and her cronies in Albany,” Rep. Mike Lawler (R-N.Y.) said in a statement.
Rep. Josh Gottheimer (D-N.J.) celebrated the decision by the federal government.
"From Day One, when we first started this fight, we knew that the Congestion Tax was just a giant cash grab for New York and the MTA — all on the backs of hardworking Jersey families. They never cared about how the tax would hurt Jersey families — they just needed the cash to pay for the MTA’s woeful mismanagement. That was just confirmed today — and now, we can all breathe a sigh of relief," Gottheimer said.
On Long Island, one town supervisor called the Trump administration's decision a vindication of his town's lawsuit to halt congestion pricing.
"They were just looking to stick it to the commuters in the tri-state area to fill their coffers," said Hempstead Town Supervisor Don Clavin. Hempstead's legal argument was cited in the Department of Transportation’s decision.
