The Trump administration has put a stop to New York City’s congestion pricing tolls, a decision that has sparked reactions from various stakeholders.
What Happened: The White House has ordered a stop to New York City’s congestion pricing tolls, according to AP News. This decision, announced by U.S. Transportation Secretary Sean P. Duffy on Wednesday, rescinds federal approval for the tolls, which were implemented to reduce traffic and fund mass transit.
The toll system, which began on January 5, charges most vehicles $9 to enter Manhattan’s core, south of Central Park. It had already shown modest traffic reductions, according to transit officials. However, Duffy described the toll as a financial burden on working-class Americans and small business owners.
President Donald Trump, whose properties are within the congestion zone, celebrated the halt on Truth Social, declaring, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED.” The White House shared an image of Trump with a crown against the New York skyline.
Gov. Kathy Hochul (D) criticized Trump’s move, stating, “New York hasn't labored under a king in over 250 years.” She confirmed the toll program would continue during ongoing litigation. The Metropolitan Transportation Authority has filed a federal lawsuit to maintain the tolls, as reported by AP News.
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Why It Matters: The congestion pricing tolls were part of a historic initiative aimed at reducing traffic and funding public transit improvements in New York City. The program made New York the first U.S. city to implement such a system, following successful models in cities like London and Stockholm.
The tolls were expected to generate significant revenue for the MTA, which faces a potential $25 billion funding gap for future infrastructure upgrades. The MTA’s capital budget is crucial for subway renovations, signal upgrades, and sustainability programs.
Rideshare companies like Uber Technologies and Lyft Inc. supported the tolls, as they stood to benefit from reduced congestion and improved air quality. The halt of the program could impact these potential benefits and delay much-needed transit funding.
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
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