The U.S. Department of Transportation (“DOT”) said the Federal Highway Administration has “terminated approval” on New York City’s controversial congestion pricing plan. The program was the first of its kind in the nation, which went into effect earlier this year.

President Trump celebrated the move from the DOT, with a post from the White House reading: “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” –President Donald J. Trump”

In a letter to New York Gov. Kathy Hochul, U.S. Transportation Secretary Sean Duffy said they were terminating its Nov. ’24 agreement with the state, stating that the federal government has jurisdiction over these highways leading to Manhattan and that these additional tolls posed an unfair burden in motorists outside the city.

Calling the program “backwards and unfair,” Duffy said: “New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners. 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. But now the toll program leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways. It’s backwards and unfair. The program also hurts small businesses in New York that rely on customers from New Jersey and Connecticut. Finally, it impedes the flow of commerce into New York by increasing costs for trucks, which in turn could make goods more expensive for consumer. Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few.”

Under the system, most cars entering Manhattan’s central  business district — from 60th Street all the way down to the southern tip of the Financial District — had 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.  Gov. Hochul has defended the program, noting that early MTA data shows that the program has been working. In an analysis released near the end of January, the MTA said 1 million fewer vehicles had entered the most congested parts of Manhattan, and that travel times on inbound bridges and tunnels had been reduced.

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