New York, NY – On February 19, 2025, the Trump administration revoked federal approval for New York City’s congestion pricing program, a move that halts the controversial toll system just weeks after its January 5 launch. The decision has ignited a fierce legal pushback from the Metropolitan Transportation Authority (MTA) and Gov. Kathy Hochul, leaving commuters and businesses caught in the crossfire of a national debate over urban traffic solutions.
- The Trump administration terminated NYC’s congestion pricing on February 19, 2025, calling it “unfair” and revenue-driven.
- The program, which charged drivers $9 to enter Manhattan below 60th Street, aimed to reduce traffic and fund mass transit.
- The MTA filed a lawsuit in federal court to preserve the tolls, citing early successes like faster commutes and increased transit use.
- Gov. Kathy Hochul vowed to keep toll cameras running, setting up a showdown with federal officials.
- The decision affects millions of commuters and a projected $500 million in first-year revenue for the MTA.
A Sudden End to a Bold Experiment
New York City’s congestion pricing program, the first of its kind in the U.S., kicked off on January 5, 2025, charging passenger vehicles $9 during peak hours to enter Manhattan south of 60th Street. Modeled after systems in London and Singapore, it sought to ease gridlock and raise funds for the city’s aging subway and bus networks. But on February 19, U.S. Transportation Secretary Sean Duffy announced the Federal Highway Administration’s withdrawal of approval, labeling the tolls “backwards and unfair” to working-class drivers and small businesses.
Why the Trump Administration Pulled the Plug
The administration’s decision came after pressure from critics, including New Jersey Gov. Phil Murphy, who argued the tolls burdened commuters outside NYC. Duffy’s letter to Hochul highlighted two key issues:
- No Free Alternative: Unlike other toll programs, NYC’s plan offered no free highway option into Manhattan, a point Duffy called “unprecedented.”
- Revenue Over Relief: He claimed the $9 fee was set to boost MTA coffers rather than reduce congestion, undermining the program’s stated purpose.
President Trump celebrated the move on Truth Social, declaring, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED.”
MTA and Hochul Fight Back
The MTA wasted no time, filing a lawsuit in Manhattan federal court on February 19 to challenge the revocation. Early data showed promise: crossing times at the Lincoln Tunnel sped up by 17% and the Holland Tunnel by 40% in January 2025 compared to the previous year. Broadway attendance also rose 17%, countering fears of economic harm.
Gov. Hochul, speaking at Grand Central Terminal, defiantly stated, “The cameras are staying on,” and accused the administration of overreach. “New York hasn’t labored under a king in over 250 years,” she said. “We sure as hell aren’t going to start now.”
Quote from MTA Chair Janno Lieber:
“It’s mystifying that after four years of review and barely three months after approval, USDOT would reverse course. Congestion pricing is working.”
Impacts on Commuters and Businesses
The abrupt halt leaves daily life in flux. Drivers who paid tolls—36 million visited the congestion zone in January—face uncertainty about refunds or future charges. Businesses, from restaurants to Broadway theaters, worry about supplier costs and foot traffic, though some data suggests the tolls boosted visits. The MTA, meanwhile, risks losing $15 billion in planned transit upgrades without the revenue.
Congestion Pricing Effects (January 2025 vs. January 2024):
| Metric | January 2024 | January 2025 | Change |
|---|---|---|---|
| Lincoln Tunnel Crossing | Baseline | 17% faster | +17% |
| Holland Tunnel Crossing | Baseline | 40% faster | +40% |
| Broadway Attendance | Baseline | Up 17% | +17% |
| Zone Visitors | 34.5 million | 36 million | +1.5 million |
New York City’s congestion pricing saga is far from over, with legal battles looming and the Trump administration’s decision reshaping urban policy debates. Whether it’s a win for drivers or a loss for transit, the outcome will ripple across millions of lives. Stay informed as this story unfolds—follow updates on congestion pricing, NYC traffic, and federal oversight to see what’s next for America’s busiest city.
