Less than two months after its implementation on Jan. 5, New York City’s congestion pricing program — also known as the Central Business District Tolling Program — had its federal approval revoked, resulting in a legal battle between the U.S. Department of Transportation and the Metropolitan Transportation Authority.
The revocation came in a letter to Gov. Kathy Hochul, in which the DOT canceled a November agreement under the Value Pricing Pilot Program.
The Federal Highway Ad-ministration states that the CBDTP was federally funded through the VPPP, which “provides transportation agencies with options to man-age congestion on highways through tolling and other pric-ing mechanisms.”
U.S. Transportation Secretary Sean Duffy claimed in the letter that the CBDTP was enacted primarily to generate revenue and was not in alignment with the goals of the VPPP.
Duffy also claimed that the program does not offer enough free options or alternatives for drivers.
Within an hour of the decision, the MTA responded by suing the DOT because the program met the requirements of the grant and should be allowed to continue.
The move was highly politicized, resulting in a showdown between Hochul and President Donald Trump.
Although congestion pricing is widely used in cities worldwide, it was the first of its kind in the United States.
The program was initially given the greenlight by former President Joe Biden’s administration in May 2023, but was rescinded by the current administration on Feb. 19.
Currently, all vehicles are charged a flat rate of $9 for entering Manhattan at or below 60th St., with planned fare hikes set to cap at $15 over the five years.
The program aimed to reduce the intense gridlock known to plague downtown and midtown Manhattan while tackling air pollution.
The revenue the MTA would generate from the program was intended to fund state-wide transportation projects.
Congestion pricing has been a topic of interest within NYC for almost two decades.
The project had gained and lost momentum periodically since 2007 when then-mayor Michael Bloomberg proposed a plan to charge drivers entering Manhattan during peak hours a congestion fee.
This was a part of PlaNYC — a strategic initiative designed to prepare the city for one million more residents, strengthen the economy, fight climate change and improve the quality of life for New Yorkers.
The program remains deeply divisive, drawing both strong support and opposition from politicians on both sides of the aisle.
Following the revocation of approval, Trump took to his social media platform Truth Social to declare: “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!”
The proclamation prompted Hochul to accuse Trump of attacking New York’s state sovereignty.
“New York hasn’t labored under a king in over 250 years. And we sure as hell are not going to start now,” Hochul posted to X.
This is not the first time that Hochul and Trump have not seen eye to eye since his return to office.
The two are also at odds over a New York state initiative that allows undocumented immigrants to get their driver’s licenses, further straining their already tense relationship.
