Department of Transportation Cancels NYC Congestion Pricing Plan

February 19, 2025 TruthUSA

The U.S. Department of Transportation has put a stop to New York City’s toll initiative, citing the absence of a free option for drivers and its emphasis on generating revenue for the public transportation system.

The U.S. Department of Transportation has rescinded its approval for the Central Business District Tolling Program in New York City, thereby terminating the planned toll for drivers entering Manhattan below 60th Street.

This decision nullifies a Nov. 21, 2024, agreement that had permitted these tolls under the Value Pricing Pilot Program (VPPP), as detailed in a statement from the department.

In a letter to Governor Kathy Hochul, U.S. Secretary of Transportation Sean Duffy raised concerns that the structure of the toll undermines the principle of preserving toll-free federal-aid highways.

“New York State’s congestion pricing strategy is an affront to working-class Americans and small business owners,” he stated in a statement. “Commuters utilizing the highway system to reach New York City have already funded the construction and enhancement of these highways through gas taxes and other levies. This toll program provides no free highway alternative for drivers and instead extracts additional funds from working individuals to finance a transit system rather than the highways. This approach is ill-conceived and unjust.”

The letter notes that the toll authority was canceled for two main reasons. The first is that the plan lacks any toll-free option for many drivers within the affected area.

The second reason is that the fee structure was primarily designed to generate revenue for public transit rather than to effectively alleviate traffic congestion.

Due to these concerns, officials concluded that the pilot program did not conform to the parameters of what is permissible under the VPPP.

The tolls were launched on January 5. The NYC Metropolitan Transit Authority aimed to utilize the revenue for significant transit enhancements, including repairs, new elevators, and expansion of the subway system.

Supporters argued that encouraging drivers to explore alternative modes of transportation could lessen pollution and congestion while generating funding for vital projects within the transit network.

Critics of the tolls contended that it unfairly burdens commuters and businesses, who are already paying taxes meant to maintain the highways they utilize.

The letter indicated that the Department of Transportation determined the program imposed “significant burdens” on workers and businesses without offering any workable free route into lower Manhattan.

Adjacent states, including New Jersey, voiced their concerns regarding the new costs imposed on drivers who frequently travel to the city.

The secretary’s correspondence references long-established federal regulations that generally restrict tolls on roads constructed with federal funding.

While the VPPP allows for limited exceptions to assess congestion-reduction tactics, the Department found that this form of cordon pricing was excessive. Furthermore, the department disapproved of the toll structure’s focus on revenue generation for public transit rather than primarily aiming to alleviate highway congestion.

The department stated that the Federal Highway Administration would collaborate with local officials to ensure an orderly termination of the tolling.

The letter confirmed that federal authorities found no substantial justification for allowing fees that are inconsistent with the intended purpose of the pilot program. The secretary expressed that while some local agencies have incurred costs, the urgent need to comply with federal law takes precedence over any anticipated toll revenues for those agencies.

As per the statement, New York is no longer authorized to collect fees under this pilot, reversing the brief cordon pricing plan unless a new legislative framework is developed.

Governor Hochul, along with the New York Department of Transportation and the New York City Department of Transportation, did not respond to requests for comments from The Epoch Times prior to publication.

Michael Washburn contributed to this report.

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