Trump administration kills new york city congestion tolls scheme

HOBOKEN, NJ — The U.S. Department of Transportation has revoked federal approval for New York City’s congestion pricing plan, effectively ending the tolling program that would have charged drivers entering Manhattan below 60th Street.

President Donald J. Trump promised the termination of that program shortly after he was elected. New Jersey Governor Phil Murphy has not yet commented on the action.

In a letter to New York Governor Kathy Hochul on Wednesday, the department rescinded a previous agreement under the Value Pricing Pilot Program (VPPP), eliminating the city’s authority to implement the Central Business District Tolling Program (CBDTP).

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“New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” U.S. Transportation Secretary Sean Duffy said in a statement. He argued that the program unfairly burdens commuters, increases costs for businesses, and contradicts the intent of federal highway funding.

The decision was based on two factors: the lack of a toll-free alternative for many drivers and the program’s primary focus on generating transit revenue rather than reducing congestion, according to the Transportation Department.

Federal officials said they would work with New York authorities on an orderly termination of the program, which was set to launch later this year.

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