The Trump administration is discontinuing New York City’s controversial congestion pricing initiative, just weeks after its launch.
In a letter sent to Governor Kathy Hochul on Wednesday, the U.S. Department of Transportation announced it was ending its agreement with the state made in November 2024. This decision follows multiple discussions between President Trump and Hochul regarding the program’s termination, as reported by a high-ranking source familiar with the situation.
Transportation Secretary Sean Duffy described congestion pricing as “backwards and unjust,” claiming it negatively impacts small businesses.
“New York State’s congestion pricing initiative is disrespectful to working-class Americans and small business proprietors,” wrote Duffy. “Commuters who utilize the highway system to enter New York City have already contributed to the construction and enhancement of these roads through gas taxes and various taxes. However, the toll program now leaves drivers with no free highway alternatives, instead extracting more money from working individuals to fund a transit network rather than highways. This approach is both backwards and unfair. The program also jeopardizes small businesses in New York that depend on customers from New Jersey and Connecticut. Furthermore, it obstructs the movement of goods into New York by escalating costs for trucks, potentially resulting in higher prices for consumers. Every American should have the opportunity to access New York City, irrespective of their financial status. It shouldn’t be exclusive to an elite few.”
Shortly after the announcement to cancel the tolling plan, Trump took to Truth Social to proclaim, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!”
Hochul, MTA, Riders Alliance counter the move
Hochul expressed her discontent with the administration’s actions on Wednesday and pledged to challenge the Trump administration legally.
“Public transit is essential for New York City and crucial to our economic growth, which President Trump, as a New Yorker, should understand,” Hochul stated. “Since this innovative program commenced last month, congestion has decreased significantly, allowing commuters to arrive at work more quickly. Broadway shows are seeing record attendance, and local businesses are witnessing increased foot traffic. School buses are transporting children to classes punctually, and yellow cab rides have surged by 10%. Transit usage is on the rise, drivers are enjoying better experiences, and support for this plan is growing daily.”
Hochul appeared to respond directly to Trump’s social media remarks.
“We are governed by law, not ruled by a monarch. The MTA has begun legal action in the Southern District of New York to safeguard this vital program. We’ll meet you in court,” Hochul asserted.
The MTA announced on Wednesday that it is filing court documents to ensure the program remains operational. MTA Chairman and CEO Janno Lieber termed the Trump administration’s decision to reverse approval as “mystifying,” asserting that the program has yielded positive outcomes.
“Today, the MTA submitted legal documents to federal court to ensure that this highly successful program — which has drastically reduced congestion, leading to decreased traffic and quicker travel times, while enhancing speeds for buses and emergency vehicles — will continue in spite of this unfounded effort to remove those benefits from the millions of mass transit users, pedestrians, and notably, the drivers who access the Manhattan Central Business District,” Lieber stated. “It is perplexing that following four years and 4,000 pages of federally-supervised environmental review — and only three months after final approval for the Congestion Relief Program — the USDOT would attempt to completely reverse its stance.”
Hochul responds to “long live the king” statement
During a press conference Wednesday afternoon with MTA leadership, the governor reiterated her stance against Trump’s “long live the king” social media comment.
“Let me be clear: New York has not been ruled by a king in over 250 years, and we certainly will not start now. This is the land where battles were fought, we stood up to a king and prevailed. In case you haven’t heard, New Yorkers, we fight back, and we do not retreat – not now, not ever,” Hochul declared.
She emphasized that she and the MTA are advocating for all New Yorkers, including commuters, drivers, and residents suffering from asthma.
“Whether you support or oppose congestion pricing, this is an affront to our sovereignty and our freedom from external control. We are a nation of states. This is what we fought for, something that visionaries like Alexander Hamilton championed – to establish a system where we are not under the thumb of a king or anyone from Washington,” Hochul said.
She also confirmed that the license plate reader cameras will remain operational, and Lieber added that the MTA’s legal documentation states they will not deactivate the tolls without a court mandate.
“New York is not going back. We’ve already experienced gridlock for 60 years; it was a failure. It cost our economy billions. However, what is enhancing our economy and improving New York’s conditions? Congestion pricing,” Lieber stated.
The Riders Alliance announced it intends to combat the termination of congestion pricing.
“Public transit users have benefitted from congestion relief and are now enjoying quicker, more reliable bus services from all over New York and New Jersey. We organized for a decade, holding two governors accountable, and prevailed in courts across three states after extensive environmental studies. We are devoted to defending our victory and will do so with every resource at our disposal,” commented Riders Alliance Director Betsy Plum.
“This initiative is generating funds for construction jobs to repair the subway. It is unjust and regressive to revert to a congested New York,” added Riders Alliance Director of Policy and Communications Danny Pearlstein. “We have already succeeded in legal challenges in New York, New Jersey, and Pennsylvania to uphold congestion pricing. We are well-versed in litigation and will return, expecting the governor of New York and the MTA to stand with us.”
Opposition welcomes Trump administration’s action
Some leaders from New York City and its suburbs celebrated the decision to terminate the program.
“From the beginning, we’ve argued this was a losing proposition,” stated Staten Island Borough President Vito Fossella. “This is positive news for those who have been, in my opinion, exploited by those who claimed it would benefit them, while in reality, it harmed them.”
Fossella acknowledged that traffic had improved in certain areas, but emphasized that Staten Island residents shouldn’t have to pay an additional toll.
“Residents of Staten Island who commute by car already pay two tolls. Introducing a third toll for traveling in and around the city is unacceptable. Yes, traffic may have decreased in certain pockets, but it has worsened in other city areas, outside the Central Business District, which was our prediction from day one,” Fossella pointed out.
Nassau County Executive Bruce Blakeman praised the Trump administration for eliminating what he termed a “severe tax on hardworking families in the Metropolitan Area.”
“It never made sense. My representative to the MTA, David Mack, was the only one to vote against it, and he was correct, just as President Trump was. This is an oppressive tax, placing a financial burden on taxpayers, students, and workers in that region. Terminating it was the right course of action,” Blakeman remarked.
Blakeman noted that residents of Nassau County were “furious” about the tolling initiative.
“Spending $9 just for the privilege of driving on a public road is unacceptable for individuals commuting to work in downtown Manhattan, students in the area, or families wanting to visit for the day. They are extremely upset about this, and I believe they will be delighted that this tax has been revoked,” Blakeman conveyed.
Congressman Mike Lawler, a potential candidate for governor in 2026, also issued a statement expressing gratitude to Trump and criticizing Gov. Hochul.
“This is a significant victory for New York families, commuters, and small businesses who have been relentlessly targeted by this unfair tax,” Lawler stated, among other comments. “This entire program amounts to nothing but a scam — a money grab — and is indicative of a much deeper, systemic issue in our state — government overreach and widespread mismanagement under Kathy Hochul and her associates in Albany.”
“Instead of imposing new, crippling taxes on struggling families, we ought to conduct an audit of the MTA, which is the most poorly managed authority in America, to identify savings, address its tremendous waste, and ensure commuters receive the safety and service they rightfully deserve,” he concluded.
New Jersey officials celebrate the decision
New Jersey Governor Phil Murphy, who had earlier indicated that congestion pricing represented the one area of agreement with Trump, issued the following statement:
“I want to extend my thanks to President Trump and Secretary Duffy for their efforts to suspend the ongoing congestion pricing program in Manhattan’s Central Business District. While I have consistently expressed my willingness to accept a form of congestion pricing that effectively safeguards the environment and does not place an undue burden on hardworking New Jersey commuters, the current initiative simply fills the MTA’s coffers at the expense of New Jersey residents.”
“While we may differ in opinion with our counterparts in New York regarding congestion pricing, our collaborative relationship with our neighbors across the Hudson has always been productive. I anticipate continuing this mode of partnership for the benefit of the entire Tri-State Area.”
Congressman Josh Gottheimer, a strong opponent of the tolling scheme and a candidate to succeed Murphy, celebrated the termination of the “Congestion Tax.”
“This is a monumental win for Jersey families, their finances, and the environment. From the outset, we recognized that the Congestion Tax was essentially a ploy for New York and the MTA to siphon money — all at the expense of hardworking Jersey families,” Gottheimer stated. “They never considered the impact the tax would have on Jersey families; they just needed the funds to address the MTA’s documented mismanagement. This truth was solidified today, and now, we’re all able to exhale. I will persist in my efforts to protect Jersey families. As I always say, don’t tangle with Jersey. Cross us, and you’ll learn why.”
Congestion pricing just launched in January
The contentious program officially commenced just last month, on January 5, following years of disputes and delays.
Hochul has endorsed the program, citing initial MTA data indicating its effectiveness. An analysis released towards the end of January — the program’s inaugural month — showed that 1 million fewer vehicles entered Manhattan’s most congested zones, and travel times through inbound bridges and tunnels were reduced.
The push to discontinue the program is likely to ignite a legal battle. It is probable that the state of New York and the MTA will initiate a lawsuit to keep the program operational.
Prior to his election, Trump had vowed to “terminate” congestion pricing, and he has faced mounting pressure from local congressional members to act against it. Rep. Nicole Malliotakis had previously stated that Trump had “instructed the Department of Transportation to explore options” for halting the program.
The lengthy journey to congestion pricing
The implementation of congestion pricing in New York City has been a prolonged endeavor. Former Mayor Michael Bloomberg proposed it back in 2007. Former Governor Andrew Cuomo then legislated the plan in 2019, overcoming a multitude of subsequent legal challenges.
Just weeks before its initially scheduled launch in 2024, Hochul temporarily paused the initiative, stating that the proposed $15 fee was excessive. She later revoked the pause with a revised fee of $9 for the majority of drivers, leading to its launch in January.
It remains uncertain whether this latest attempt to halt the plan will actually stop its implementation.
Read DOT Secretary Sean Duffy’s letter
Stay tuned for further updates on this evolving situation.
