Trump administration revokes approval for New York City congestion pricing.
Federal Government Rescinds Approval for NYC Congestion Pricing, MTA Vows Legal Battle
NEW YORK – The U.S. Department of Transportation has revoked its approval of the MTA's congestion pricing toll program, but the agency is preparing to challenge the decision in federal court to keep the plan in place.
Launched on January 5, the city's congestion pricing system uses license plate readers to charge most vehicles a $9 toll when entering Manhattan south of Central Park. In its early weeks, transit officials reported measurable traffic reductions.
U.S. Transportation Secretary Sean P. Duffy announced Wednesday that the federal government was pulling its support, calling the toll an undue financial burden on working-class Americans and small businesses. He said the agency would work with New York to facilitate an "orderly termination" of the program.
In response, New York Governor Kathy Hochul pledged to fight the decision, revealing that the MTA filed a lawsuit within minutes of receiving notification from the federal government.
"Within seconds of getting this notification, our MTA was prepared. We filed a lawsuit within minutes," Hochul said in a press conference. "We are very confident we will succeed. And I also want to be clear—the cameras are staying on."
MTA Chair Janno Lieber defended the program’s success, citing early data that showed positive effects on the city.
"Traffic was down 9% in January, with 1.2 million fewer vehicles entering the central business district," Lieber said. "Bus speeds are up, crashes are down, and pedestrian traffic has surged. This is working."
He also countered claims that congestion pricing would hurt businesses, pointing to economic indicators showing growth.
"Restaurant reservations are up 7%, Broadway grosses have risen 25%, and commercial office leasing increased 61% in January compared to last year," Lieber said. "People want to be in New York."
Lieber referenced polling that found 60% of New Yorkers support allowing the city and state to maintain congestion pricing.
However, President Trump—whose Trump Tower penthouse and other properties are located within the congestion zone—made it clear he intended to kill the plan upon taking office. Following the Transportation Department’s decision, he declared victory on Truth Social.
"CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED," Trump wrote, later posting an image of himself wearing a crown in front of the New York skyline.
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