NEW YORK — The administration led by President Donald Trump announced on Wednesday the cancellation of New York City’s congestion pricing initiative, designed to alleviate traffic congestion and finance public transit. The plan implemented high tolls for drivers entering certain parts of Manhattan, particularly areas south of Central Park.
Initiated on January 5, the city’s tolling program leverages license plate recognition technology to charge most passenger vehicles a fee of $9 upon entry into specified Manhattan neighborhoods. In its initial phase, transit officials report that the toll has contributed to slight yet significant decreases in traffic congestion. Furthermore, this toll is added to the existing fees drivers incur when using the region’s bridges and tunnels. For instance, during peak hours, motorists traveling from New Jersey through a tunnel face a total cost of $31.81 or a lower fee of $22.06 if they are participants in the E-ZPass system.
U.S. Transportation Secretary Sean P. Duffy stated that the federal government has rescinded its approval of the congestion pricing initiative, describing the decision as “a slap in the face to working class Americans and small business owners.” He assured that the agency would collaborate with state officials to oversee an orderly elimination of these tolls.
While similar tolling systems have operated in major cities around the world—such as London, Stockholm, Milan, and Singapore—New York City had never before implemented such an approach in the United States. Trump, who owns properties including Trump Tower within the congestion zone, criticized the plan as a significant tax targeting lower-income individuals. He expressed that the presence of the congestion charge would hinder the city’s recovery prospects during an earlier statement last November.
The funding generated by the toll is earmarked to support the city’s struggling public transit system, which services approximately 4 million riders daily. This tolling initiative has elicited mixed reactions. Proponents, which include transit advocates and environmentalist groups, argue that it represents a forward-thinking move to minimize air pollution, enhance pedestrian and cyclist safety, and expedite traffic for essential vehicles, such as those used for deliveries and by emergency services.
On the other hand, many New Yorkers who own vehicles, particularly those residing in suburban areas or neighborhoods with limited subway access, strongly oppose the high fees. New Jersey’s Governor Phil Murphy, a Democrat, actively campaigned against the tolls, even resorting to legal action and urging Trump in a letter on Inauguration Day to dismantle the program.
There were also concerns from New York Governor Kathy Hochul, who initially paused the rollout of the toll system last June due to potential economic repercussions. Nonetheless, after Trump assumed office, she reintroduced the plan but reduced the toll for passenger vehicles from $15 to $9, emphasizing its benefits for the city. She has since engaged in discussions with the President regarding the tolling program.
Initially approved by New York lawmakers in 2019, the congestion pricing plan faced significant delays while awaiting a mandatory federal environmental review, which was completed under President Joe Biden’s administration. The fees charged can fluctuate based on the time of day and the type of vehicle, with larger vehicles incurring higher charges and a reduced rate of $2.25 for most cars during late-night hours.
The implementation of this tolling system has been contested through several legal challenges prior to its launch, with lawsuits filed by various groups, including officials from New Jersey, unionized educators in New York City, members of the trucking industry, and local representatives from areas in close proximity to New York, such as Long Island and northern New Jersey.
