President Trump recently stated publicly that he has the ability to terminate New York City’s Congestion Pricing through the federal Department of Transportation. If the congestion pricing is not canceled, it could lead to the withholding of millions of dollars in federal funds for New York State. New York Governor Kathy Hochul has expressed willingness to continue discussions with Trump, but has not clearly stated whether she will adjust the policy.
In an interview with the New York Post last Sunday, Trump claimed that he has “great power” to end congestion pricing and mentioned that his discussions with Hochul were conducted out of respect. He stated that if he decides to intervene, he could use the federal Department of Transportation in Washington to “kill” the policy and even consider withholding federal funds to compel New York State to cancel the congestion pricing.
According to current regulations, the New York State Legislature passed a congestion pricing plan in 2019 aimed at reducing traffic congestion in Midtown and Downtown Manhattan while raising funds for the Metropolitan Transportation Authority (MTA). The plan has received approval from the federal Department of Transportation. In 2023, the federal government approved MTA’s environmental impact assessment, deeming the plan as having “no significant environmental impact” and paving the way for its implementation. At the end of last year, the policy also received support from the federal agreement under the Value Pricing Pilot Program, allowing toll revenues to be used for purposes other than road maintenance. Congestion pricing officially took effect on January 5th this year.
Although a federal judge has ruled that the Department of Transportation’s environmental assessment is valid, analysts suggest that Trump may still seek legal means to overturn the Biden administration’s approvals.
Republican New York Congresswoman Nicole Malliotakis recently told the media that Trump has the authority to revoke the Biden administration’s “rubber stamp approval” and reevaluate the policy’s environmental impact.
Chen Jiashan, co-chair of the Greater Chinatown Alliance, previously told this publication that the environmental impact assessment conducted by MTA only lasted three months and had loopholes as it did not include a study on the economic impact. “They only care about pollution and congestion, so it is unfair.”
Regarding the economic impact of congestion pricing, opponents argue that drivers entering Manhattan below 60th Street are required to pay a basic toll of $9, which they see as an additional tax on the working class and a burden on local small businesses.
However, groups supporting congestion pricing have stated that if Trump takes action, they will be prepared to file a lawsuit.
In response to Trump’s remarks, Governor Hochul’s office recently informed NBC that the Governor has had several “productive conversations” with Trump and is willing to continue communication to ensure that the policy benefits New York and the entire metropolitan area. However, Hochul has not explicitly stated whether she will adjust or pause the policy.
Currently, it is unclear when the next conversation between Hochul and Trump will take place. Due to the ongoing controversy surrounding congestion pricing, it is widely anticipated that the outcome of Trump’s efforts to terminate the policy remains uncertain and could lead to intense legal and political battles.
In terms of the effectiveness of congestion pricing in alleviating traffic pressure, preliminary data released by MTA shows that overall vehicle flow into the toll zone has decreased by approximately 5%, resulting in significant reductions in commute times.