In a significant policy shift, President Donald Trump announced the termination of a Manhattan congestion pricing scheme that was intended to fund the city's mass transit upgrades. This decision has prompted an array of legal battles spearheaded by New York Gov. Kathy Hochul.
Politico reported that the congestion pricing plan, also known as the congestion relief program, was initially approved and started charging motorists entering Manhattan below 60th Street on January 5th. The plan was aimed to improve traffic conditions and enhance public transport services.
Initially proposed with a toll fee of up to $15, the charge was lowered to $9 after interventions by Gov. Hochul in November.
The scheme hoped to generate approximately $1 billion annually, crucial for funding infrastructure improvements through municipal bonds.
However, in a sudden turn of events, President Trump declared through social media that congestion pricing was "dead." His announcement followed a decision by U.S. Transportation Secretary Sean Duffy to revoke the previously granted federal approval required for the tolls.
Duffy criticized the plan as detrimental to working-class Americans and small business owners who already contribute to highway maintenance via taxes.
His statement marked a significant policy reversal, considering the program’s approval was less than four months old at the time.
In response, Gov. Hochul and Janno Lieber, president and CEO of the Metropolitan Transportation Authority (MTA), filed legal actions seeking to preserve the congestion pricing effort. Hochul's administration argued that the abrupt cancellation of federal support undermined years of planning and legal compliance.
Lieber expressed confusion and frustration over the federal turnaround, highlighting the extensive environmental reviews and legal processes that the plan had successfully navigated. He noted the program's importance in not just easing congestion but also funding critical transit upgrades.
Gov. Hochul reinforced her commitment to challenge the decision in court, emphasizing the rule of law and the importance of sustainable transit funding for New York. She noted, "We are a nation of laws, not ruled by a king."
Support for the tolls wasn’t universal. New Jersey Gov. Phil Murphy applauded the decision to halt the program, aligning with his long-standing criticism of the tolls as harmful to New Jersey residents commuting to Manhattan.
Similarly, Democratic Rep. Josh Gottheimer opposed the imposition of tolls, which he viewed as unfairly burdensome on New Jersey families and a makeshift solution to cover the MTA’s alleged mismanagement issues.
On the other hand, transit advocates and city business leaders lauded the initial implementation of congestion pricing.
Betsy Plum of the Riders Alliance highlighted the improved bus services and traffic reductions, a testament to years of advocacy and legal battles aimed at realizing the toll system.
Maintaining a neutral stance, various legal and policy analysts now await the outcomes from the courts, which will play a decisive role in determining whether the congestion pricing initiative can be revived or will remain a halted endeavor.