New York City’s first-in-the-nation congestion pricing plan is in jeopardy after President Trump’s administration withdrew federal approval for the program on February 19, 2025. U.S. Transportation Secretary Sean Duffy informed Gov. Kathy Hochul that the federal government was terminating its November 2024 agreement with the state, a move that could derail the controversial toll system.
History of NYC’s Congestion Pricing Plan
The congestion pricing plan was nearly 20 years in the making, inspired by successful models in cities like London and Singapore.
2007: Michael Bloomberg’s First Attempt
- Then-Mayor Michael Bloomberg introduced congestion pricing in April 2007 as part of his “PlaNYC” sustainability initiative.
- The plan proposed an $8 toll for most vehicles entering Manhattan below 86th Street during weekday business hours.
- Despite receiving federal funding and City Council approval, the proposal failed in the state Legislature due to opposition from outer borough lawmakers.
2017: Gov. Cuomo Revives Congestion Pricing
- In 2017, Gov. Andrew Cuomo revisited the idea to reduce traffic and fund MTA improvements.
- The “Fix NYC” commission recommended an $11.52 toll for vehicles below 60th Street during peak hours.
- Then-Mayor Bill de Blasio initially opposed the plan but later endorsed it as part of a deal with Cuomo to improve the MTA.
- In 2019, the first congestion surcharge was implemented on taxis and ride-share vehicles below 96th Street.
2021-2023: Hochul Takes Over & Federal Approval
- After Cuomo resigned in 2021, Gov. Hochul took charge of the project.
- In summer 2023, the federal government approved the plan, clearing a major hurdle.
- In March 2024, the MTA board approved a $15 toll for most vehicles entering Manhattan below 60th Street during peak hours.
- The tolls were set to begin on June 30, 2024, but Hochul paused the program due to concerns about economic impact.
The Latest Battle: Trump Administration Blocks Plan
November 2024: Hochul Resurrects the Toll at a Lower Rate
- After the 2024 election, Hochul revived the program with a lower $9 toll, which the MTA and federal government approved.
- The congestion pricing toll officially launched on January 5, 2025.
February 2025: Federal Government Pulls Approval
- Trump administration officials and opponents of the toll lobbied to reverse the program.
- After talks between Hochul and Trump stalled, the U.S. Department of Transportation announced on February 19, 2025, that it was withdrawing federal approval.
- The MTA quickly responded by filing a lawsuit to keep the program in place.
What Happens Next?
- Gov. Hochul and the MTA are fighting back, filing court papers to stop the rollback of congestion pricing.
- Legal experts suggest the case could head to the U.S. Supreme Court.
- The outcome of this battle will determine whether congestion pricing survives or is permanently shut down.
