Federal Government Revokes Approval of New York City Congestion Pricing: What’s Next for the City and Commuters?
New City, NY – In a significant policy shift, the Executive Branch of the federal government has terminated its approval of New York City’s congestion pricing plan, raising questions about the future of the city’s ambitious traffic and environmental initiative.
The repeal comes just a month after the toll system was implemented to generate funds for the Metropolitan Transit Authority (MTA) and modernize the region’s aging mass transit infrastructure.
Federal Government Cites ‘Unfair Burden’ on Motorists
Transportation Secretary Sean Duffy announced the repeal, arguing that the additional tolls imposed an unjust strain on drivers, particularly those commuting from outside Manhattan. “New York State’s congestion pricing plan is a slap in the face to working-class Americans and small business owners,” Duffy said. “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.”
The congestion pricing system required most vehicles entering Manhattan’s central business district—from 60th Street to the southern tip of the Financial District—to pay a peak fee of $9 from 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends.
New York’s Response: A Legal Battle Looms
Governor Kathy Hochul, undeterred by the federal government’s stance, emphasized that the cameras vital to the toll collection system would remain operational. “The cameras are staying on,” Hochul said in a press conference at Grand Central Terminal. “New York hasn’t labored under a king in over 250 years, and we sure as hell are not going to start now.”
Janno Lieber, chairman and CEO of the MTA, indicated that the agency would pursue legal action to challenge the federal government’s decision. “Congestion pricing underwent a thorough federal review and proved its benefits,” Lieber asserted. “We tried gridlock for 60 years. It didn’t work. It cost our economy billions. But you know what’s helping our economy? What’s making New York a better place? Congestion pricing.”
Support and Opposition Split Along Regional Lines
The move to repeal congestion pricing has garnered mixed reactions. While officials in New York City argue that the plan reduces gridlock and promotes public transit, critics from surrounding regions claim it unfairly penalizes suburban commuters.
“Today is a huge win for Jersey families, their wallets, and the environment,” said Rep. Josh Gottheimer (D-N.J.). “From Day One, when we first started this fight, we knew that the Congestion Tax was just a giant cash grab for New York and the MTA—all on the backs of hardworking Jersey families.”
Rockland County’s voice in Albany, State Senator Bill Weber, also praised the decision, highlighting the toll’s disproportionate impact on Rockland County residents. “Thank you to President Trump and his administration for ending congestion pricing. Rockland County has been treated like an ATM for the MTA for far too long, and we refuse to be a doormat any longer. Fighting against this unfair toll has been one of my biggest priorities while running for and serving in the New York State Senate. Now, we must ensure that congestion pricing remains a thing of the past—for the sake of our hardworking Rockland County commuters,” Weber said.
Governor Hochul responded to criticisms from New Jersey and Rockland officials with a mix of pragmatism and humor. “In what world should we be standing down to the will of another state?” she remarked. “I mean, I personally would like to have all the New York teams playing in New York. But I’m not proposing that the federal government go annex the Meadowlands,” referring to the New Jersey-based stadium where the New York Giants and Jets play.
What’s Next for New York City’s Congestion Pricing?
The path forward is expected to be contentious, with the MTA preparing for a protracted legal battle. Analysts suggest that the courts will need to weigh complex jurisdictional and regulatory issues, including the federal government’s authority over state-implemented toll systems and the broader implications for local traffic management policies nationwide.
In the meantime, the city and state governments are exploring contingency plans to maintain funding for the MTA’s critical infrastructure projects. The toll cameras will continue to operate, though whether they will collect fees or merely gather data remains uncertain until the legal dust settles.
For now, New Yorkers and commuters into the city are left in a state of limbo, wondering whether congestion pricing will survive the political and legal challenges ahead.