What to Know
- The U.S. Department of Transportation announced on Wednesday it is withdrawing its support for New York City's first-in-the-nation congestion pricing plan, opening a new chapter in the controversial program's history.
- While the department provided the authorization for the pilot program, congestion pricing is operated by the Metropolitan Transportation Authority.
- An end to congestion pricing could lead to the delay or end of multiple infrastructure projects announced by the MTA that rely on funding from the $9 peak-hour toll to enter Manhattan.
The U.S. Department of Transportation announced on Wednesday it is withdrawing its support for New York City's first-in-the-nation congestion pricing plan, opening a new chapter in the controversial program's history.
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 program, which it had originally granted on Nov. 21 under the Biden administration.
While the reactions to the news of congestion pricing are mixed among New York and New Jersey elected officials, a spokesperson from the governor's office said any descriptions of congestion pricing as over are premature.
The president posted on Truth Social, meanwhile, that the program was halted, adding "LONG LIVE THE KING" who "saved" New York. So what's the case?
Can the DOT terminate congestion pricing unilaterally?
The Department of Transportation's letter indicates that they were withdrawing support for the tolling plan but did not specify a date by which it would "terminate" the pilot program. While the department provided the authorization for the pilot program, congestion pricing is operated by the Metropolitan Transportation Authority.
In a statement, MTA Chair and CEO Janno Lieber said the agency filed a lawsuit in federal court to ensure the plan will remain in place.
"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 chairman added.
The lawsuit claims that the Trump administration's efforts to end congestion pricing are "unlawful" and declares the tolling system as the status quo.
"The status quo is that Congestion Pricing continues, and unless a court orders otherwise, Plaintiffs will continue to operate the Program as required by New York law," the federal court challenge reads.
NYC Comptroller and mayoral candidate Brad Lander said his office was exploring "all available options" to reverse the Trump administration's decision to stop congestion pricing.
What projects could be affected by an end to congestion pricing?
On Jan. 10, days after the controversial program started, the MTA chair and CEO Janno Lieber announced the purchase of 265 electric buses as the first project "unlocked" by congestion pricing. The busses were purchased during the first week and are expected to be in circulation across the city later this year.
Another big project that could be affected by the possible end of congestion pricing is the second phase of the Second Avenue subway extension. In the days before the toll was implemented, the MTA issued a request for proposals from companies that could design and build the extension of the Q line between 96th and 125th streets, THE CITY, an independent newsroom reported.
When the project was "paused" last summer, NBC New York reported on that the pause would impact projects to add elevators and ramps for at least 18 subway stations and upgrading signals for C & F lines in Brooklyn and Manhattan.
In the letter, Duffy recognizes that an end to congestion pricing "may deprive the transit agency of funding, but any reliance on that funding stream was not reasonable given that FHWA approved only a 'pilot project.'"
