Following a pointed letter from United States Department of Transportation Secretary Sean Duffy to New York State Governor Kathy Hochul earlier this month, regarding New York City’s congestion pricing plan, the fate of the plan remains in limbo, with a potential March 21 expiration date.
The plan, which was rolled out by Governor Hochul, went into effect on January 5, in the form of a $9 toll for vehicles heading into Manhattan below 60th Street and also during peak hours. The objectives of the plan, as outlined by the Governor’s office, focus on cutting down on traffic congestion and pollution, while also bringing in revenue for public transportation improvements, too. The plan—also known as the Central Business District (CBD) Tolling Program (CBDTP) and a pilot project under the Value Pricing Pilot Program—was approved by the Federal Highway Administration late last year, under the Biden administration.
As previously reported, the fate of the plan came into question, with Secretary Sean Duffy writing a letter to Hochul on February 19, in which he stated that he was asked by President Trump to review FHWA’s approval of the plan.
“In particular, the President expressed his concerns about the extent of the tolling that was approved by the Department of Transportation on highways that have been constructed with funds under the Federal-aid Highway Program and the significant burdens on the New York City residents, businesses, and area commuters (including those from New Jersey and Connecticut) who regularly use the highway network in the CBD tolling area,” wrote Duffy.
The Secretary added that New Jersey Governor Phil Murphy wrote a letter to Trump, expressing significant concerns about the impacts of the imposition of tolls under the CBDTP pilot project is having on the state’s commuters and residents.
Duffy also noted that, like President Trump, he has concerns regarding the impacts of the program to working class Americans that now have an additional financial burden to account for in their daily lives.
To that end, Duffy observed that the CBDTP is not an eligible value-pricing pilot program for two main reasons:
- CBDTP uses a “cordon pricing,” a form of tolling in which drivers entering Manhattan south of 60th Street are charged tolls no matter what roads they use; and
- the imposition of tolls under the CBDTP pilot project appears to be driven primarily by the need to raise revenue for the Metropolitan Transit Authority (MTA) system, as opposed to the need to reduce congestion
“Federal aid infrastructure projects must be carried out in compliance with Federal law,” wrote Duffy. “Due to my conclusion concluded that the FHWA lacked statutory authority to approve the cordon pricing tolling under the CBDTP pilot project, I am rescinding FHWA’s approval of the CBDTP pilot project under the November 2021 agreement and terminating the Agreement…The FHWA will contact NYSDOT and its project sponsors to discuss the orderly cessation of toll operations under the terminated pilot project.”
Governor Hochul did not pull any punches in responding to Secretary Duffy’s letter, calling it an attack on the state’s sovereign identity and independence from Washington, adding that a lawsuit was filed soon after the letter was sent to her office.
“The next time you’re stuck in traffic, the next time your train is delayed, the next time you’re in a flooded station because infrastructure repairs were not made, I want you to think of this,” she said. “Think about this: Next time you’re stuck in traffic, we know where the blame goes.”
Fast-forward roughly one week later, and it remains clear that the congestion pricing plan’s days could be numbered.
That was made clear in a New York Times report, which stated that Gloria Shepherd, Federal Highway Administration Executive Director, penned a letter to New York transportation leaders that requested they “must cease the collection of tolls” by March 21. And Shepherd added that they must work with her organization “to provide the necessary details and updates,” relating the halting toll operations, the report added.
For its part, the New York MTA said that it would keep the congestion pricing plan intact, barring instructions from a federal judge, the report said.
From a trucking perspective, American Trucking Associations (ATA) President and CEO Chris Spear commended the Whitehouse for its efforts to terminate what he called a disastrous tolling scheme.
“Truckers don’t drive into Manhattan to sightsee,” said Spear. “They do it because customers depend on them. The deliveries they make are essential to businesses and residents and keep New York City running. Truckers deserve our gratitude. Instead, New York imposed a $21.60 toll —eventually climbing to $36—each time they crossed south of 60th Street. Even worse, the proceeds of this shakedown were not dedicated to improving roads and bridges but rather subsidized a bloated and mismanaged transit bureaucracy that has proven unable to control spiraling costs. New York’s subways were never going to deliver the city’s freight. The American Trucking Associations was proud to support the Trucking Association of New York’s leadership in their successful fight against this unfair policy. We also appreciate the Trump Administration restoring the original intent of the Value Pricing Pilot Program, which does not give states carte blanche ability to toll. Ending this program will remove an unjust hardship on truckers servicing New York.”
This is not the first time congestion pricing has faced a roadblock in New York City.
In 2008, a plan proposed by former New York Mayor Michael Bloomberg to charge a fee to drivers entering the most congested parts of Manhattan was squelched, when the New York State Assembly rejected the proposal.
Bloomberg’s plan, which was initially proposed on Earth Day in 2007, called for cars and trucks (those with low emissions being exempt) be required to pay $8 and $21, respectively, when entering Manhattan below 60th Street from 6 a.m. to 6 p.m. on weekdays. When the plan was first rolled out, it was slated for vehicles entering Manhattan below 86th Street. While motorists and truckers driving along Manhattan’s east and west sides would not have been fined under the original plan, the fee would have been deducted from the tolls commuters already pay to come into Manhattan via the connecting bridges or tunnels.
