Trump-Vance Administration moves forward to halt congestion pricing in New York City

The Trump-Vance Administration has moved forward to halt the Central Business District Tolling Program (CBDTP), also known as congestion pricing, in New York City. In a letter to New York Gov. Kathy Hochul on Feb. 19, U.S. Department of Transportation (USDOT) Secretary Sean Duffy rescinded a Nov. 21, 2024, agreement signed under the Value Pricing Pilot Program (VPPP). 

“New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” Duffy wrote in the letter. “Commuters using the highway system to enter New York City have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes, but now, 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. It’s backwards and unfair.” 

Duffy continued in his letter, saying, “The program also hurts small businesses in New York that rely on customers from New Jersey and Connecticut. Finally, it impedes the flow of commerce into New York by increasing costs for trucks, which in turn could make goods more expensive for consumers. Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few.” 

In the letter, Duffy says the administration is terminating the program for two reasons: 

1. The scope of the CBDTP is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in this major urbanized area.  
2. The toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion. By doing so, the pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction – not transit revenue generation. 

Congestion pricing features a 40 percent reduction in all tolls for vehicles entering the city’s Central Business District. The Federal Highway Administration (FHWA) will work with the project sponsors on an orderly termination of the tolls.  

Reaction 

In a post on Truth Social, President Trump said that “Manhattan, and all of New York, is SAVED.” 

House Committee on Transportation and Infrastructure Chair Sam Graves (R-MO-6) and Transit Subcommittee Chairman David Rouzer (R-NC-7) applauded the actions of the administration, saying, “We commend President Trump and Secretary Duffy for acting to provide relief for hardworking families, commuters, small businesses, truckers and more throughout the New York metropolitan area.  In particular, we applaud our Republican House of Representatives colleagues in the New York and New Jersey delegations for their relentless efforts to stand up for their constituents, share their concerns with the Trump Administration and get results.” 

New Jersey Gov. Phil Murphy also agreed with the actions taken by the administration. 

“I want to thank President Trump and Secretary Duffy for their efforts to halt the current congestion pricing program in Manhattan’s Central Business District. 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 [Metropolitan Transportation Authority’s (MTA)] pockets at the expense of New Jerseyans. 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,” Gov. Murphy said in a statement. 

The MTA is trying to fight the shutdown of the program. Immediately after Duffy’s letter was received, the MTA filed papers against the notion in federal court.  

In a statement, MTA Chair and CEO Janno Leiber said, “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.” 

Gov. Hochul echoed Leiber’s sentiments. In a statement of her own, she said, “Public transit is the lifeblood of New York City and critical to our economic future — as a New Yorker, like President Trump, knows very well. Since this first-in-the-nation program took effect last month, congestion has dropped dramatically and commuters are getting to work faster than ever. 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. 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.” 

Citizens Budget Commission President Andrew S. Rein commented, "The federal decision to revoke approval for New York’s congestion pricing program could undermine New York’s economy and quality of life and have ripple effects for the broader regional and national economy. It may stop a well-vetted program that is already benefiting drivers, riders and taxpayers, with less congestion and faster travel times. As congestion pricing’s future plays out in the courts, billions of dollars of critical MTA investments may be delayed or remain unfunded, increasing the likelihood of service disruptions and outages. We certainly hope this decision is reversed by the courts."