The U.S. Dept. of Transportation said in a letter to New York Gov. Kathy Hochul (D) on Feb. 19 that it has rescinded its earlier approval for New York City’s first-in-the-country congestion pricing program. But state officials said they would fight the move, filing a lawsuit in federal court minutes after receiving the notice. 

U.S. Transportation Secretary Sean Duffy called the program, which is aimed at reducing traffic congestion and is set to help fund billions of dollars’ worth of subway, bus and other transportation projects, “a slap in the face to working class Americans and small business owners.” In a post on social media, President Donald Trump claimed victory, declaring congestion pricing “DEAD” and New York “SAVED.” He added, “LONG LIVE THE KING!”

Hochul responded at a press conference held in front of New York City subway station turnstiles, saying that the congestion pricing program would remain in effect.

“New York hasn’t labored under a king in under 250 years,” Hochul said, referencing the president’s post. “We sure as hell aren’t going to start now.”

In its lawsuit, New York’s Metropolitan Transportation Authority alleges that the efforts to terminate the program “are unlawful” and is asking a judge to declare the termination null and void in its suit. 

“It’s mystifying that after four years of environmental study and 4,000 pages of environmental review, the U.S. DOT would seek to reverse course,” MTA Chair and CEO Janno Lieber said at the governor’s press conference. 

Federal officials were just one part of a multi-party agreement and the Trump administration's actions looking to terminate the agreement “obviously do not require [MTA] to cease operation of the program,” the complaint states. “The status quo is that congestion pricing continues, and unless and until a court orders otherwise, [MTA] will continue to operate the program as required by New York law.”

Map courtesy MTA

MTA planned to fund projects with $15 billion in bonds to be paid down with the collected tolls. Those projects include the $7.7-billion Second Avenue Subway Phase 2 extension, plus accessibility improvements at subway stations, subway signal modernization and bus infrastructure. 

According to MTA’s complaint, its affiliate, the Triborough Bridge and Tunnel Authority (TBTA), previously issued $378.8 million in short-term notes funding infrastructure costs and already issued another $500 million in short-term notes funding a portion of the $15 billion in projects. TBTA also expects to close a $500-million bank loan supporting the capital program this month. It is relying on the toll funding to repay those debts. Lieber said that MTA has no contingency plan for the funding. 

“I think it’s a real mistake to allow infrastructure projects to be at the whim of the politics of the moment,” says Sam Schwartz, a former New York City traffic commissioner and founder of traffic engineering firm Sam Schwartz Consulting LLC. “People in other states that are planning major infrastructure projects shouldn’t have to worry that a new administration may come in after the Trump administration and suddenly kill their projects.”

The congestion price program applies to most of Manhattan south of 60th Street, with passenger cars facing $9 tolls during peak hours. It took effect Jan. 5, and MTA data show drivers quickly began altering their patterns, arriving in the Manhattan Central Business District (CBD) in the early morning before peak pricing or taking public transit.

Reduced Congestion

Average weekday trip times across river crossings into the CBD in January were down across the board compared to a year earlier, ranging from a 10% reduction for drivers entering Manhattan via the Brooklyn or Manhattan bridges to a 48% reduction for drivers entering Manhattan via the Holland Tunnel, according to MTA. Weekday travel times within the CBD were also mostly down compared to a year earlier. MTA also said bus and subway ridership were also up, as was ridership at some Long Island Rail Road stations and all Metro-North Railroad stations. 

“New Yorkers are already seeing faster commutes, less traffic and increased safety on streets, with a 51% drop in crash-related injuries,” said Kate Slevin, executive vice president of Regional Plan Association, a nonprofit civic group, in a statement. 

Even items like restaurant reservations, Broadway show attendance, yellow cab trips and commercial office leases were up in January compared to a year before, according to Lieber, which he attributed to the congestion pricing program. 

Duffy wrote in his letter to Hochul that Trump had asked him to review the Federal Highway Administration’s approval, which had been granted in November. Despite the benefits seen so far, Duffy wrote that the scope of the program as approved “exceeds the authority authorized by Congress” because there is not a non-tolled alternative available, and because, he claimed, the tolls were primarily driven by the need for MTA funding and not for other goals such as reducing congestion. 

“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,” Duffy added in the statement. “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.”

Federal Highway Administration staff will contact the New York State Dept. of Transportation “to discuss the orderly cessation of toll operations under this terminated pilot project,” Duffy concluded his letter. It does not provide a firm end date. 

Schwartz, the former New York City traffic commissioner, says he hopes the Trump administration will give the program at least a year to see if it meets its goals—or that Trump may see the benefits in reduced traffic on Fifth Avenue in front of Trump Tower.

“I think that they have overstepped their bounds,” he says of the U.S. Dept. of Transportation. “This program has been incredibly successful, far more than I expected. Traffic speeds are up, traffic injuries are down. Broadway is up. Every indication I have looked at is looking good.”