New York Congestion Pricing Approval Pulled by Trump Administration – Fleet Management

The Trump administration said it is putting the kibosh on New York City’s controversial congestion pricing plan.

After multiple delays, the city officially implemented the plan in January. The program imposes tolls on drivers entering Manhattan below 60th Street. 

Heavy-duty trucks now must pay $21.60 each time they enter Manhattan south of 60th Street between 5 a.m. and 9 p.m. on weekdays and between 9 a.m. and 9 p.m. on weekends. 

On Feb. 19, the Federal Highway Administration announced it had terminated approval of the pilot for the program, officially called the Central Business District Tolling Program.

In a letter to New York Gov. Kathy Hochul, Transportation Secretary Sean Duffy said FHWA was rescinding a November 21, 2024, agreement signed under the Value Pricing Pilot Program. 

The move effectively ends tolling authority for the program, according to Duffy.

“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.

“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. 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.

“Finally, it impedes the flow of commerce into New York by increasing costs for trucks, which in turn could make goods more expensive for consumer[s]. Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few.”

Duffy: NYC Congestion Pricing Doesn’t Meet Congestion Pilot Program Requirements

Except for limited exceptions allowed by Congress, Duffy said, highways constructed with Federal-aid highway funds cannot be tolled. The VPPP is one of the few exceptions.

He gave two reasons for terminating the project:

1. The scope of the CBDTP is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in this major urbanized area.
2. The toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion. By doing so, the pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction — not transit revenue generation.  

“I have concluded that Congress did not, in using the vague phrase “value pricing pilot program,” authorize the unprecedented and consequential step of cordon pricing,” Duffy wrote.

The letter did not indicate a specific date for the end of the program, but said the FHWA  will work with the project sponsors on an orderly termination of the tolls.

Expect Legal Pushback on DOT’s Effort to End NYC Congestion Pricing 

The move is almost certain to spark a legal battle over the Trump administration’s federal authority and the 2019 state law initiating the tolls. 

Like many of the Trump administration’s recent initiatives to roll back and revoke programs previously approved, there are questions about the FHWA’s legal authority to kill a program that had been legally approved and upheld by the courts.

Duffy appeared to address this concern in his letter: “I recognize that FHWA under the prior administration concluded, when executing the November 21 Agreement, that the CBDTP was eligible for approval under VPPP, and that my determination represents a change in position. FHWA, however, did not explain the basis for its conclusion, and nothing in the prior approval undermines the above analysis upon which my determination is based.”

A New York state official told ABC News that whatever the Trump administration intends, the state will fight in court to preserve congestion pricing.

Why Trucking Opposed NYC’s Congestion Pricing

The program appeared to have been working, according to early data. In its first month, approximately 1.2 million fewer vehicles entered the congestion zone compared to the previous year, resulting in a 7.5% drop in traffic. 

Trucking interests opposed the congestion pricing plan. The Trucking Association of New York said it wasn’t opposed to the concept of congestion pricing in general (after all, congestion costs trucking time and money), but that the program unfairly targeted trucking.

Trucks, which make up only 4% of all NYC vehicle traffic, are charged on a per-trip basis, while passenger vehicles are only charged once per day, according to the association.

“OOIDA and the thousands of small business truckers who operate in New York City welcome USDOT’s decision to rescind tolling authority for New York ‘s congestion pricing plan,” said Owner-Operator Independent Drivers Association President Todd Spencer in a statement.

“Truckers often have very little control over their schedules, so this congestion pricing plan is particularly problematic for owner-operators and independent drivers. We routinely have no other choice than to drive through metropolitan areas during periods of high congestion because of the rigidity of current federal hours of service requirements. 

“Additionally, shippers and receivers generally have little regard for a driver’s schedule, frequently requiring loading and unloading to occur at times when nearby roads are most congested. … Beyond New York City, we encourage the Trump Administration and Congress to fight the expansion of tolling across the country.”