Trump Admin Set To Axe NYC’s New Congestion Toll, DOT Secretary Duffy Confirms

It’s the end of an era, albeit an extremely short one. It seems only fitting that an administration focused on cutting spending an efficiency finally has told New York City – and its bottomless money pit the MTA – that enough is enough. 

New York City’s deeply unpopular congestion pricing plan is now set to be scrapped, as the Trump administration will revoke its approval Wednesday, calling the toll “backwards and unfair”, according to the New York Post. The Department of Transportation confirmed the report shortly after the Post’s scoop.

The Federal Highway Administration will revoke approval of New York’s controversial congestion pricing plan, according to a letter Transportation Secretary Sean Duffy will send to Gov. Hochul on Wednesday.

“New York State’s congestion pricing plan is a slap in the face to working-class Americans and small business owners. 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, not highways. It’s backwards and unfair,” Duffy said.

The Post writes that the U.S. Department of Transportation will revoke its approval of New York’s congestion pricing plan, officially rescinding the Nov. 21 agreement under the Value Pricing Pilot Program (VPPP). The plan, which imposed a $9 toll on drivers entering Manhattan below 60th Street, had made NYC the most expensive city in the U.S. to drive in.

“The pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction — not transit revenue generation,” the DOT stated, adding that the program conflicted with federal highway aid rules, which prohibit tolling on federally funded roads without congressional approval.

Duffy emphasized the program’s economic burden: “Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few.”

In a letter to Gov. Kathy Hochul, Duffy acknowledged that ending the tolls could impact transit funding but dismissed any expectation of long-term reliance on the revenue, noting that the Federal Highway Administration had only approved a pilot project.

The DOT said it will coordinate with project sponsors for an “orderly termination” of the tolls, though it remains unclear when collection will officially end.

As we noted last month, traffic had fallen about 7.5% as a result of the tolls. 

The congestion pricing program was initially set to take effect last year with a $15 charge, but New York Gov. Kathy Hochul later decided to put it on hold. Hochul eventually revived the program with a lower $9 charge.

The governor estimated that the new lower toll would save daily commuters around $1,500 per year when taking into account what they were originally on track to pay, and she promised discounts for commuters at the lower end of the income scale. For example, car owners earning less than $50,000 per year get a 50 percent discount on every toll after their 10th toll in a given month.

President Trump had previously expressed intent to end the program when he takes office.