The U.S. Department of Transportation has revoked federal approval for New York City’s congestion pricing program, citing concerns that it exceeds the authority granted by Congress.
The decision, announced by Transportation Secretary Sean Duffy, effectively halts the nation’s first congestion pricing initiative, which had been in effect since earlier this year.
In a letter to New York Gov. Kathy Hochul, Duffy stated that a review determined the program’s scope went beyond what was authorized under the Federal Highway Administration’s Value Pricing Pilot Program.
“New York State’s congestion pricing plan is a slap in the face to working-class Americans and small business owners,” Duffy said in a statement. “Drivers who use these highways have already contributed to their construction and maintenance through fuel taxes and other fees. Now, this toll program forces them to pay even more without offering a free alternative, essentially making commuters fund a transit system rather than the roads they use. It’s unfair and misguided.”
The congestion pricing plan, designed to reduce traffic in Manhattan’s busiest areas while generating revenue for the city’s transit system, had been a major policy initiative for state and city officials. Supporters argued it was essential for funding subway and bus improvements, while critics contended it placed an undue financial burden on commuters and businesses reliant on vehicular access to the city.
Following the federal decision, a New York state official responded, asserting that the administration’s move would be challenged in court. “Regardless of the political motivations behind this decision, New York will fight to defend congestion pricing and ensure our transit system remains adequately funded,” the official said.
