President Donald Trump's administration on Wednesday ordered a halt to New York City's congestion pricing system, which thins traffic and funds mass transit by imposing high tolls on drivers entering some parts of Manhattan.
Launched on Jan. 5, the city's system uses license plate readers to impose a $9 toll on most vehicles entering Manhattan neighborhoods south of Central Park. In its early days, transit officials say the toll has brought modest but measurable traffic reductions.
In a statement, U.S. Transportation Secretary Sean P. Duffy announced the federal government has rescinded its approval of the program, calling it "slap in the face to working class Americans and small business owners."
Duffy said his agency will work with the state on an "orderly termination of the tolls."
New York Gov. Kathy Hochul has not responded to the letter from the Department of Transportation with a spokesperson earlier in the afternoon saying it had yet to receive the letter.
The Metropolitan Transportation Authority (MTA) said it is heading to court over the DOT withdrawal of its congestion pricing approval.
"Today, the MTA filed papers in federal court to ensure that the highly successful program - which has already dramatically reduced congestion, bringing reduced traffic and faster travel times, while increasing speeds for buses and emergency vehicles - will continue notwithstanding this baseless effort to snatch those benefits away from the millions of mass transit users, pedestrians and, especially, the drivers who come to the Manhattan Central Business District. It's mystifying that after four years and 4,000 pages of federally-supervised environmental review - and barely three months after giving final approval to the Congestion Relief Program - USDOT would seek to totally reverse course," MTA Chair and CEO Janno Lieber said in a statement.
Trump, whose namesake Trump Tower penthouse and other properties are within the congestion zone, had vowed to kill the plan as soon as he took office. He previously characterized it as a massive, regressive tax, saying "it will be virtually impossible for New York City to come back as long as the congestion tax is in effect."
Similar tolling programs intended to force people onto public transit by making driving cost-prohibitive have long existed in other global cities, including London, Stockholm, Milan and Singapore, but the system had never before been tried in the U.S.
The Trump administration order set off a wave of reaction from congestion pricing supporters and critics.
Staten Island Borough President Vito Fossella thanked the Trump administration for its decision.
"It was always a three-strike loser and a nonstarter for Staten Island - more traffic, more air pollution and more tolls. The program was revived unceremoniously, at a politically opportune time for political reasons. To bring an end to the program is the right thing not just for Staten Island but for the City as a whole. The MTA should follow this action by turning off the toll readers and relieving Staten Island residents from this unnecessary and burdensome tax once and for all," Fossella said in a statement.
Rep. Jerry Nadler, D-N.Y., said the federal government's rationale for rescinding its approval of congestion pricing as "utterly baseless and frankly, laughable" in a statement.
"The arguments presented by the US DOT against congestion pricing are utterly baseless and frankly, laughable. Congestion pricing has not only consistently withstood significant legal challenges, emerging victorious in every court decision to date, but it has also become immensely popular among New Yorkers, delivering on its promises -- less traffic, fewer crashes, and reduced noise pollution, all contributing to safer, quieter streets," Nadler said.
"Mr. President, we'll see you in court," the New York congressman said.
GOP Rep. Mike Lawler called the DOT's decision a "win" for New Yorkers.
"This is a huge win for New York families, commuters, and small businesses ruthlessly targeted by this unjust tax." "Make no mistake: this entire program is nothing more than a scam -- a money grab -- and is the symptom of a far deeper, systemic issue in our state - government overreach and rampant mismanagement at the hands of Kathy Hochul and her cronies in Albany," Rep. Mike Lawler (R-N.Y.) said in a statement.