BREAKING NEWS: NYC Congestion Plan Pause Sparks Debate Over Federal Authority

On 19 February 2025, the U.S. Department of Transportation (DOT) revoked federal approval for New York City's congestion pricing program, halting the nation’s first urban tolling plan just weeks after its launch. The decision, confirmed in a letter from Transportation Secretary Sean Duffy to New York Governor Kathy Hochul, comes after President Donald Trump personally intervened to fulfill a campaign promise to end the initiative.

Duffy called the congestion pricing “backwards and unfair,” arguing that it disproportionately burdens working-class Americans and small businesses. He cited concerns over rising costs for commuters, small business owners, and truckers, warning that the tolling system could increase consumer prices and restrict access to Manhattan’s business district.

“New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” said Duffy in a DOT 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 … Every American should be able to access New York City regardless of their economic means.”

The move immediately set off a political and legal firestorm, with the Metropolitan Transportation Authority (MTA) filing a lawsuit in federal court to block the administration’s decision. MTA Chair and CEO Janno Lieber shared his frustration in a statement from the MTA. “It’s mystifying that after four years and 4,000 pages of federally-supervised environmental review – and barely three months after giving final approval to the Congestion Relief Program – USDOT would seek to totally reverse course,” said Lieber.

The Riders Alliance, an advocacy group for public transit users, also vowed to fight the administration’s decision. The group’s executive director, Betsy Plum, called congestion pricing a hard-fought victory. “We’ve organized for a decade and prevailed in court in three states [to] achieve a historic victory and will continue to defend it with everything we have,” said Plum in a statement on X (formerly known as Twitter).

Trump Attacks State-Level Regulations

The administration’s shift away from programs previously approved under the Biden administration comes as part of a broader effort to curb state authority over infrastructure and energy regulations. On 20 January 2025, the president declared a national energy emergency, directing federal agencies to override state-level restrictions on energy projects, expedite pipeline approvals, and roll back environmental permitting requirements.

In the case of New York, the president's opposition to congestion pricing is seen as deeply political. The program was initially set to go into effect last summer but was put on hold by Governor Hochul due to its controversial nature, which could harm Democrats in the upcoming election. After Trump won the election in November, Hochul reinstated the law and dropped the peak fare to enter the city from $15 to $9.

Hochul and Trump had recently been in talks about congestion pricing. While Governor Hochul stated in an 11 February 2025 press conference that she could make a “persuasive argument” as to why the congestion plan should remain in effect, the president seemingly remained unmoved from his previous plan. In a statement to the New York Post, Trump said, “I think [the congestion pricing plan is] really horrible, but I want to discuss it with her at this point. If I decide to do it, I will be able to kill it off in Washington through the Department of Transportation.”

In response to his actions, Governor Hochul stated, “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.”

Prior Success and Challenges to Congestion Plan

Early data suggests that congestion pricing was working as intended. According to the MTA, the program reduced traffic by nearly one million vehicles in its first month and cut travel times on inbound bridges and tunnels by 10% to 30%. Meanwhile, pedestrian traffic in Manhattan’s business district increased, indicating that fears of an economic downturn caused by the rule may have been overblown.

However, opposition to the toll remained fierce, particularly from New Jersey lawmakers, Republican members of Congress, and suburban commuters, who argued the program was an unfair money grab. In a letter to the president, New Jersey Governor Phil Murphy called for an end to the program, claiming it placed an excessive financial burden on commuters who already pay high bridge and tunnel tolls.

“The current congestion pricing scheme is a disaster for working and middle-class New Jersey commuters and residents who need or want to visit lower Manhattan and now need to pay a big fee on top of the bridge and tunnel tolls they already pay,” said Murphy. “And, adding insult to injury, New Jersey communities are not being fully compensated for the additional traffic and attendant pollution that will be re-routed to them because of congestion pricing.”

After President Trump’s decision on Wednesday, Governor Murphy released a statement thanking him and the transportation secretary for their efforts to halt the current congestion pricing program.

The Coming Legal Battle

With the federal government now revoking its support, congestion pricing’s future is in limbo. Congestion pricing supporters warn that if the program is permanently blocked, the state must find alternative funding sources to fill the $1 billion annual gap in MTA revenue. According to the MTA’s lawsuit, the agency has already planned to borrow against expected congestion pricing revenue, meaning New York could be left scrambling to cover its budget shortfall.

The battle over congestion pricing will be a significant test of federal versus state authority. If the president prevails, it could set a precedent for the federal government to override state policies on urban infrastructure, transit funding, and environmental regulations. However, if New York wins in court, it will send a strong message that states still have the power to implement their own transportation policies without federal interference.

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