U.S. Department of Transportation terminates tolling approval for New York City’s cordon pricing program
WASHINGTON, D.C. – The U.S. Department of Transportation’s Federal Highway Administration Wednesday terminated approval of the pilot for New York’s Central Business District Tolling Program (CBDTP).
In a letter to New York Governor Kathy Hochul, the Department rescinded a November 21, 2024 agreement signed under the Value Pricing Pilot Program (VPPP) that effectively ends tolling authority for New York City’s cordon pricing plan, which imposes tolls on drivers entering Manhattan below 60th Street.
“New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” said U.S. Transportation Secretary Sean P. Duffy. “Commuters using the highway system to enter New York City have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes. But now the toll program leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways. It’s backwards and unfair. The program also hurts small businesses in New York that rely on customers from New Jersey and Connecticut. Finally, it impedes the flow of commerce into New York by increasing costs for trucks, which in turn could make goods more expensive for consumer. Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few.”
The construction of federal-aid highways as a toll-free highway system has long been fundamental to the Federal-aid highway program. Except for limited exceptions allowed by Congress, highways constructed with Federal-aid highway funds cannot be tolled. The construction of Federal-aid highways as a toll-free highway system has long been fundamental to the Federal-aid highway program. The VPPP is one of the exceptions to the general prohibition against tolling.
As detailed in the letter, the Secretary is terminating the pilot for two reasons. First, the scope of the CBDTP is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in this major urbanized area. Second, the toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion. By doing so, the pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction – not transit revenue generation.
The Federal Highway Administration will work with the project sponsors on an orderly termination of the tolls.
“The cameras are staying on,” said New York Governor Kathy Hochul.
“I want to thank President Trump and Secretary Duffy for their efforts to halt the current congestion pricing program in Manhattan’s Central Business District. While I have consistently expressed openness to a form of congestion pricing that meaningfully protects the environment and does not unfairly burden hardworking New Jersey commuters, the current program lines the MTA’s pockets at the expense of New Jerseyans. Although we have had a difference of opinion with our colleagues in New York on congestion pricing, we have always had a productive relationship with our neighbors across the Hudson. I look forward to continuing that spirit of partnership for the benefit of the entire Tri-State Area,” Governor Phil Murphy said.
“Thank you, President Trump, for listening to New Jersey’s concerns and ending Congestion Pricing. From the very beginning, I have opposed this deeply flawed program that unfairly targeted New Jerseyans and all those who commute into Manhattan. This was nothing more than a money grab on New Jersey taxpayers. I have made it a priority in my discussions directly with President Trump as well as my House colleagues on both sides of the aisle. This is a huge victory, and we will never stop standing up for New Jersey,” said Congressman Tom Kean, Jr.
“Today is a huge win for Jersey families, their wallets, and the environment. From Day One, when we first started this fight, we knew that the Congestion Tax was just a giant cash grab for New York and the MTA — all on the backs of hardworking Jersey families. They never cared about how the tax would hurt Jersey families — they just needed the cash to pay for the MTA’s woeful mismanagement. That was just confirmed today — and now, we can all breathe a sigh of relief. I’ll never stop fighting to protect Jersey families. As I always say, don’t mess with Jersey. Screw with us, and you’ll find out why,” said U.S. Congressman Josh Gottheimer (NJ-5).
