Federal agency pressures state to abandon major traffic program: 'Critical to our economic future'

The Trump administration ordered New York City to stop congestion pricing by March 21, which is now fast approaching, potentially ending a program that promised to reduce traffic and improve air quality in the city. That said, New York has filed a lawsuit to keep the program in place.

What's happening?

As the Guardian reported, Federal Highway Administration (FHWA) executive director Gloria Shepherd sent a letter to New York state and city officials ordering them to cease collection of tolls on federal aid highways in Manhattan's Central Business District. 

The Manhattan Central Business District Tolling Program was approved by the FHWA in 2023 and officially implemented in January of this year. The program is designed to collect fees from vehicles driving below 60th Street in Manhattan during peak traffic hours. 

The program received criticism because some believed the fees would negatively impact low-income residents. Despite the controversy, this congestion pricing initiative was implemented, earning revenue for the Metropolitan Transportation Authority. The MTA reported increases in ridership and smoother commutes since the implementation of the program. 

Now, Shepard and Transportation Secretary Sean Duffy are calling on the initiative to end, citing concerns over the financial burden on working-class New Yorkers.

Why is congestion pricing important?

When announcing the program in 2023, New York Governor Kathy Hochul said that it would "reduce traffic in our crowded downtown, improve air quality, and provide critical resources to the MTA." 

The primary fee was projected to be $15, but it was later reduced to $9 after concerns about the severity of the price. As the Guardian concisely summarized it, the fee is imposed on those "who enter Manhattan below 60th Street between 5 a.m. and 9 p.m. on weekdays" with "a lower fee from 9 a.m. to 9 p.m. on weekends."

The FHWA did not say whether it would be more open to a lesser toll. 

Funds from the tolls go toward improving and maintaining the New York City subway and New York commuter rails, according to the MTA website. Improvements to these systems should lead to faster and more reliable service in the long run. 

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Congestion pricing has already resulted in a reduction of cars, increased ridership in public transportation, and smoother bus commutes. Subway ridership has gone up 7.3% on weekdays and 12% on weekends since the implementation of the program. 

Fewer cars and more public transportation usage can reduce air pollution and lower transportation costs for consumers. Transportation makes up the largest portion of greenhouse gas pollution in the U.S., with the Environmental Protection Agency reporting 28% of air pollution coming from the transportation industry in 2022. 

What's being done to protect congestion pricing?

The MTA and the Triborough Bridge and Tunnel Authority filed a lawsuit to block the Trump administration's order to stop congestion pricing. 

Governor Hochul announced the MTA's lawsuit in a post on X, formerly known as Twitter. She said that "foot traffic to local businesses is spiking" and "public transit is the lifeblood of New York City and critical to our economic future."

Editor's note: A previous version of this article stated that the New York State Bridge Authority was part of the lawsuit; the correct authority is the Triborough Bridge and Tunnel Authority.

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