Trump Administration Considers Halting New York City's Congestion Pricing Program

The Trump administration is contemplating a move to stop New York City's congestion pricing program, according to two insiders. The Department of Transportation is evaluating the possibility of withdrawing a crucial federal authorization that the tolling plan received from the Biden administration last year. If executed, this action could potentially lead to a legal confrontation between the state and federal governments, effectively undermining the nascent congestion pricing initiative.

No decisive conclusion has been reached, but President Trump previously promised to terminate congestion pricing after assuming office, arguing it negatively impacts the city’s economy. Opponents of the program have implored Trump to reassess it, with New Jersey Governor Philip D. Murphy labeling it a "disaster for working- and middle-class New Jersey commuters and residents" in a recent correspondence to Trump.

The tolling program commenced on January 5 after overcoming several lawsuits aimed at blocking it and a temporary suspension by New York Governor Kathy Hochul in June.

Hochul and Trump have communicated twice this week, including on Thursday morning, discussing various issues including congestion pricing. Sources state the governor informed Trump that the program is demonstrating success.

Trump indicated to Hochul that they should reconvene soon regarding this topic.

A White House spokesman did not immediately provide a comment.

Transit experts note that reversing a transportation project of this scale is uncommon. New York's congestion pricing plan, conceptualized over sixty years ago, is the first of its kind in the United States. Legal experts assert that the federal government’s action could violate existing laws and would likely encounter significant opposition in court.

Michael Gerrard, a Columbia Law School professor who advocates for the program, stated, "It is questionable whether the administration can unilaterally halt congestion pricing. The legal authority for that is not at all apparent."

The Metropolitan Transportation Authority (M.T.A.), responsible for operating congestion pricing, declined to comment on the potential threat to the program but referred to previous statements regarding the plan's robustness.

Janno Lieber, chair and chief executive of the M.T.A., stated in an interview this month, "We've been sued in every federal court and state court east of the Mississippi, and we're batting 1.000. We've won every time."

A representative for Hochul highlighted her earlier remarks praising the program and its significance in enhancing New York's transit system.

Cities like London, Stockholm, and Singapore, which have enacted congestion pricing, utilized the tolls to reduce traffic and vehicle emissions, encourage public transportation, and generate revenue. While such tolls initially face disapproval, they often gain public support over time. According to a Siena College survey from December, more than half of New York voters opposed congestion pricing.

Approved by state lawmakers in 2019, the plan imposes a $9 fee on most vehicles entering Manhattan south of 60th Street, notorious for its traffic congestion. The program received its final bureaucratic clearance in November when the Federal Highway Administration granted New York the necessary approval to impose driver tolls.

The M.T.A. invested half a billion dollars in infrastructure for toll collection preceding the program's launch.

The goal of congestion pricing is to reduce vehicle traffic in the newly tolled area, which includes iconic landmarks like the Empire State Building, Times Square, and Wall Street. The toll revenue is projected to assist the M.T.A. in raising $15 billion for repairs and enhancements to the city's aging subway system, which still relies on equipment dating back to World War II. The funds will also support upgrades to the authority’s bus fleet and two commuter train lines.