Federal Government Withdraws Support for NYC’s Congestion Pricing Program, Sparks Legal Battle

Edited by: Fern Sidman

In a dramatic policy reversal, the U.S. Department of Transportation (DOT) has withdrawn its support for New York City’s congestion pricing plan, effectively moving to end the initiative that aimed to alleviate traffic congestion and generate revenue for the Metropolitan Transportation Authority (MTA). As reported by NBC News, the DOT announced its decision on Wednesday, sending a formal letter from Transportation Secretary Sean Duffy to New York Governor Kathy Hochul to communicate the administration’s stance.

According to NBC News, the DOT had initially approved the congestion pricing plan under the Biden administration on November 21 as part of a federally sanctioned “Value Pricing Pilot Program.” However, in a stunning reversal, Secretary Duffy now contends that the program exceeds the scope of its authorization, arguing that the initiative prioritizes revenue generation for the MTA over its stated goal of reducing congestion. The department has signaled its intent to work with New York state officials to dismantle the program, though the timeline for this remains uncertain.

The MTA, which has heavily invested in congestion pricing as a means to improve mass transit and traffic flow, is preparing for a legal showdown. NBC News reported that Janno Lieber, the Chair and CEO of the MTA, issued a strong rebuttal, stating that the agency has already filed legal action in federal court to defend the program. “Today, the MTA filed papers in federal court to ensure that the highly successful program—which has already dramatically reduced congestion, bringing reduced traffic and faster travel times while increasing speeds for buses and emergency vehicles—will continue notwithstanding this baseless effort to snatch those benefits away from the millions of mass transit users, pedestrians, and, especially, the drivers who come to the Manhattan Central Business District,” Lieber told NBC News.

The controversy has extended beyond legal arguments, with President Donald Trump publicly celebrating the DOT’s decision. Taking to Truth Social, Trump declared, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” NBC News noted that the statement shines a proverbial spotlight on the political stakes of the issue, with opponents of the plan—including many Republicans—framing it as an excessive tax burden on commuters, while proponents emphasize its environmental and traffic-reduction benefits.

Governor Kathy Hochul, as reported by NBC News, remains firmly in support of congestion pricing and has pushed back against the federal government’s sudden reversal. She cited evidence that congestion has decreased, commute times have improved, and businesses in affected areas have seen increased foot traffic. “Broadway shows are selling out and foot traffic to local businesses is spiking. School buses are getting kids to class on time, and yellow cab trips increased by 10 percent. Transit ridership is up, drivers are having a better experience, and support for this program is growing every day,” Hochul said in a statement. Her remarks, covered by NBC News, also included a sharp rebuke of Trump’s comments, emphasizing, “We are a nation of laws, not ruled by a king. The MTA has initiated legal proceedings in the Southern District of New York to preserve this critical program. We’ll see you in court.”

NBC News also noted that while the DOT’s decision casts uncertainty over the future of congestion pricing in New York, the battle is far from over. The MTA has invested significant resources into implementing the initiative, and with legal action now underway, the matter is likely to be settled in federal court. Whether the courts uphold the DOT’s authority to revoke the program or side with New York’s claims that the plan is legally sound will have far-reaching implications for urban transit policy across the nation.

According to NBC News, the opposition to congestion pricing extends beyond the federal level. New Jersey Governor Phil Murphy, a Democrat who has long criticized the program and previously pursued legal action against it, welcomed the decision by President Donald Trump and Transportation Secretary Sean Duffy. In a statement obtained by NBC News, Murphy reiterated his openness to congestion pricing that prioritizes environmental protections but argued that New York’s current model disproportionately harms New Jersey commuters while primarily serving as a financial boon for the Metropolitan Transportation Authority (MTA). “While I have consistently expressed openness to a form of congestion pricing that meaningfully protects the environment and does not unfairly burden hardworking New Jersey commuters, the current program lines the MTA’s pockets at the expense of New Jerseyans,” Murphy stated.

The DOT’s decision was not entirely unexpected. Reports suggest that over the weekend, President Trump granted exclusive comments to the New York Post, in which he referenced recent discussions with Governor Kathy Hochul and underscored his ability to put an end to the program, according to the information provided in the NBC News report. This aligns with Trump’s broader opposition to congestion pricing, which he has framed as an unfair financial burden on commuters and businesses in Manhattan’s central business district.

For many drivers, the end of congestion pricing—if it indeed comes to a halt—could be welcome news. The program, which has been in effect for only seven weeks, requires vehicles entering Manhattan’s most congested areas to pay a $9 toll during peak hours. While this toll has been a source of frustration for some, the NBC News report also highlighted that others have observed a noticeable decrease in traffic congestion, allowing for smoother commutes, reduced emissions, and improved travel times for emergency and public transit vehicles.

However, the NBC News report emphasized that the stakes of eliminating congestion pricing extend beyond traffic concerns. The MTA has already allocated expected revenue from the tolls to fund key infrastructure projects, including the expansion of the Second Avenue subway, modernization of outdated subway signals, and accessibility improvements such as installing elevators at more stations. Without the congestion pricing funds, these projects face an uncertain future, and the MTA may be forced to seek alternative revenue sources or scale back its planned improvements.

In his letter to Governor Hochul, as cited by NBC News, Secretary Duffy asserted that there would be no “substantial” costs associated with halting the congestion pricing program. While this claim may alleviate concerns about financial penalties related to stopping the tolls, NBC News points out that the broader economic and transit impacts of losing congestion pricing revenue remain a pressing question for New York City officials.

As the legal and political drama continues, the NBC News report noted that the congestion pricing controversy is far from over. With the MTA fighting back in federal court, the Biden administration’s initial approval of the program under scrutiny, and President Trump declaring victory over the tolls, the coming months will determine whether congestion pricing remains a fixture of New York City’s urban policy—or fades into history as a short-lived experiment.