US DOT Revokes Approval of NYC Congestion Tolling Plan

U.S. Department of Transportation Secretary Sean Duffy has informed New York Governor Kathy Hochul that the Federal Highway Administration (FHWA) has revoked its approval of New York City’s Central Business District Tolling Program, better known as congestion pricing. The congestion pricing program began on January 5, 2025. A termination date has not been announced.

Federal law prohibits tolls on existing lanes of federally funded highways. However, there is an FHWA program, the Value Pricing Pilot Program (VPPP), which makes an exception for fifteen states, including New York. Secretary Duffy said the New York plan failed to meet VPPP standards in two ways:

1. New York has no alternate routes available to avoid the tolls. All previously approved VPPP plans offered alternate, toll-free routes.

2. The NYC toll revenues flow to the Metropolitan Transit Authority (MTA), which operates the NYC subways, with rates set to meet MTA’s budgetary needs and not used for congestion relief, the purpose of the VPPP.

The MTA is preparing litigation against the U.S.DOT decision.