Introduction to Congestion Pricing
With just hours remaining before a federal deadline to bring an end to congestion pricing, New York City’s controversial tolling program was given a last-minute extension by the Trump administration.
U.S. Department of Transportation Secretary Sean Duffy posted on social media Tuesday afternoon that the state would have 30 more days to stop collecting congestion pricing tolls. The initial deadline to halt the program was set for Friday.
Duffy said more time would be allowed "as discussions continue," but seemingly threatened to cut off funding for New York if Gov. Kathy Hochul did not turn off the cameras.
Background on the Conflict
"Your refusal to end cordon pricing and your open disrespect towards the federal government is unacceptable," Duffy said in a tweet. "Your unlawful pricing scheme charges working-class citizens to use roads their federal tax dollars already paid to build…Know that the billions of dollars the federal government sends to New York are not a blank check. Continued noncompliance will not be taken lightly."
In February, President Donald Trump ordered congestion pricing tolling to cease, as the DOT said it rescinded approval for her state’s controversial congestion program.
That letter was sent to New York officials on Feb. 20, the day after Transportation Secretary Sean Duffy announced he’d rescinded federal approval of the toll, calling it a "slap in the face to working class Americans and small business owners.”
Gov. Hochul has promised an “orderly resistance” to the federal decree, which called for an “orderly termination” to congestion pricing. Similar toll programs have long existed in other cities, including London, Stockholm, Milan and Singapore, but have never been tried before in the U.S.
Response from New York Officials
“We will not be steamrolled here in New York,” the Democratic governor previously vowed at a board meeting of the Metropolitan Transportation Authority, the state agency that’s overseeing the toll. “We’re in this fight together, and I’m in this as long as it takes.”
Hochul has met privately with Trump at the White House, where she presented him a booklet her press secretary, Avi Small, said showed the early success of congestion pricing.
NBC 4’s Andrew Siff reports on the new March 21st date that was set by the Trump Administration and Governor Kathy Hochul’s response.
The MTA has filed suit in Manhattan federal court, arguing the Trump administration lacks legal authority to revoke approval for the program, which was granted under Democratic President Joe Biden’s administration.
Effectiveness of Congestion Pricing
“The federal government cannot unilaterally terminate the program,” Janno Lieber, chair and CEO of the MTA, said on an appearance on NY1 last month. “Once it’s begun, there’s all kinds of case law in federal courts about the procedures that the federal government has to use to take away an approval to reverse a decision. None of this complies with that, and that’s why we are so comfortable that this is a strong case, and we’re going to win.”
Lieber argued that the tolling plan, which launched on Jan. 5, is working as intended.
He said there are 60,000 fewer vehicles a day driving into the tolling zone — a 10% reduction — while travel times are noticeably faster on tunnels and bridges into Manhattan as well as its busy cross streets.
Pedestrian traffic is up around 4% and economic activity appears to be up, with Broadway theater attendance, restaurant reservations and retail sales in the tolling zone seeing increases over a similar period in 2024, Lieber said.
He said the MTA is on track to generate roughly $500 million from the toll program by the end of the year, allowing it to move forward with planned subway, bus and transit improvements. The MTA earned nearly $50 million in roughly the first month of the toll’s operation, according to a report the agency released last month.
“We’re not going back, no matter what the rhetoric from other parts of the East Coast is," Lieber said. “We tried gridlock for 50 years, and it was bad for our economy, it was bad for our health and it was bad for New Yorkers’ quality of life.”
The fight over congestion pricing is reaching a boiling point, with both sides digging in their heels. New York Gov. Kathy Hochul and Transportation Secretary Sean Duffy have been trading a war of words over the controversial program, as the Trump administration has ordered it to end, but the state refuses to back down. NBC New York’s John Chandler reports.
Public Opinion
A survey published earlier in March showed a majority of New Yorkers were in favor of the city’s congestion pricing toll, mirroring the support found in international cities who have implemented similar programs.
The Siena College poll found that 42% of New York City residents want the congestion pricing toll to stay, while a slightly smaller 35% support President Donald Trump’s attempts to squash the tolling program aimed at lessening vehicle traffic in Manhattan and funding the MTA.
Maybe most noticeable about the new poll, is the change in opinion in just the few months that congestion pricing has been in place.
New Yorkers were asked about their feelings on congestion pricing back in December, and Siena College found that a smaller number (32%) support the toll. Meanwhile, an overwhelming 52% were in opposition.
Favorability is still weaker outside of New York City. Statewide, roughly one-third of people polled support the program, versus 40% who want it gone.
The Riders Alliance told NYC Streetsblog it makes sense that the people who see the program’s success up close would be the "biggest champions of its success."
"With gridlock down, buses moving faster, and revenue rolling in for reliable trains and accessible stations, New York is proving that our government can work for the people," Riders Alliance Director of Policy and Communications Danny Pearlstein told the outlet.
Conclusion
The extension given by the Trump administration to New York City’s congestion pricing program indicates a continued standoff between federal and state authorities. As the debate unfolds, it’s clear that the effectiveness of the program, as well as public opinion, will play significant roles in determining the future of congestion pricing in New York City.
FAQs
Q: What is congestion pricing?
A: Congestion pricing is a tolling program aimed at reducing vehicle traffic in Manhattan and funding the MTA.
Q: Why has the Trump administration ordered an end to congestion pricing?
A: The Trump administration has rescinded federal approval for the program, citing it as a "slap in the face to working class Americans and small business owners.”
Q: What is the current status of the program?
A: The program has been given a 30-day extension by the Trump administration, with a new deadline set for March 21st.
Q: What are the effects of congestion pricing on traffic and the economy?
A: According to the MTA, there are 60,000 fewer vehicles a day driving into the tolling zone, and travel times are noticeably faster. Economic activity also appears to be up, with increases in Broadway theater attendance, restaurant reservations, and retail sales.
Q: What is the public opinion on congestion pricing?
A: A majority of New Yorkers are in favor of the city’s congestion pricing toll, with 42% wanting it to stay, according to a Siena College poll.
