Trump administration sets deadline for NYC to cease congestion pricing toll
The U.S. Department of Transportation (DOT) has issued a letter ordering New York City’s Metropolitan Transportation Authority (MTA) to eliminate its controversial congestion pricing tolls by mid-March. The letter, signed by Federal Highway Administration (FHWA) Executive Director Gloria Shepherd on Feb. 20 and released Wednesday, directs the New York State Department of Transportation (NYSDOT) and its project sponsors to halt the collection of tolls on Federal-aid highways in New York’s Central Business District Tolling Program by March 21.
The program, which was initially approved by the FHWA, was terminated by DOT Secretary Sean Duffy in a letter sent on Feb. 19. In the letter, Shepherd called for the agencies and project sponsors to cease operations in an orderly manner. Despite the federal order to halt the program, toll collection has continued due to a federal lawsuit filed by the MTA, the agency responsible for public transit in New York City.
John J. McCarthy, MTA’s chief of policy and external relations, stated in a response to the federal order that the MTA believes it is not a lawful order and has already filed a lawsuit, leaving the decision up to the courts. Critics of the tolling program argue that it disproportionately impacts suburban commuters and those without access to the subway system, leading to increased costs for working-class Americans and small business owners.
On the other hand, advocates of the congestion pricing tolls assert that the fees will help limit traffic congestion and reduce air pollution in the city. The MTA reported that tolls generated $48.66 million in revenue, with a net of $37.5 million, from Jan. 5 to Jan. 31, putting the program on track to meet the projected $500 million in revenue.
The revenue breakdown showed that 22% came from taxis and for-hire vehicles, 68% from passenger vehicles, 9% from trucks, and 1% from buses and motorcycles. The MTA noted that 95% of revenue was generated during peak tolling hours, with expenses for operating camera infrastructure and customer service totaling $9.1 million.
New York Gov. Kathy Hochul, a supporter of the tolling program, met with President Donald Trump to discuss the issue. Hochul argued that the program is necessary to address gridlock in the city and vowed to continue the fight to keep it in place. Despite the federal order to end the program, Hochul expressed confidence that the state would win the case in court and that the program would continue.
The Central Business District Tolling Program was approved under the Value Pricing Pilot Program (VPPP), an exception to the general rule outlawing tolling on highways to test congestion reduction techniques. New York is one of about a dozen states allowed to implement the program under the VPPP.
As the situation unfolds, it remains to be seen how the legal battle over the congestion pricing tolls will play out. Stay tuned for updates on this developing story.
