In a significant shift in federal transportation policy, the Federal Highway Administration (FHWA) has rescinded its prior approval of New York City’s Central Business District Tolling Program (CBDTP), effectively halting the city’s congestion pricing initiative. The decision, announced Wednesday, follows a directive from President Donald Trump to review the program’s scope and economic impact on commuters, businesses, and the broader supply chain.
The move comes after U.S. Department of Transportation Secretary Sean Duffy formally withdrew the federal government’s authorization of the tolling initiative, citing two primary concerns. First, Duffy described the program as “unprecedented,” noting that it did not provide a toll-free option for many drivers. Second, he argued that the program was structured primarily to generate revenue for the Metropolitan Transit Authority (MTA) rather than serving its intended purpose of reducing congestion.
Policy Rationale and Economic Considerations
Proponents of congestion pricing have long argued that such programs help reduce traffic congestion, lower emissions, and encourage the use of public transportation. However, opponents—including the trucking industry, small business advocates, and some commuter organizations—have raised concerns that the program disproportionately impacts working-class individuals and businesses that rely on vehicular transportation.
Duffy characterized the program as “a slap in the face to working-class Americans and small business owners,” emphasizing that commuters have already contributed to the construction and maintenance of New York’s highways through fuel taxes and other levies. His statement echoed sentiments expressed by various stakeholders who argue that congestion pricing places additional financial burdens on those who rely on personal or commercial vehicles for their livelihoods.
The tolling structure, which charged large trucks $21.60 and smaller trucks $14.40 to enter Manhattan below 60th Street, was set to increase incrementally, reaching $36 for some vehicles by 2031. While night-time discounts were available, industry representatives argued that the policy failed to account for the operational realities of truck drivers, whose schedules are often dictated by customers and federal hours-of-service regulations.
Response from the Transportation and Business Sectors
The trucking industry has been among the most vocal opponents of congestion pricing, citing increased costs and supply chain inefficiencies. Kendra Hems, President of the Trucking Association of New York (TANY), expressed strong support for the FHWA’s decision. “We stand with President Trump and Secretary Duffy in their efforts to end the congestion pricing program,” Hems stated, calling for an immediate cessation of toll collections.
Similarly, the Owner-Operator Independent Drivers Association (OOIDA) and the American Trucking Associations (ATA) welcomed the policy reversal. Todd Spencer, President of OOIDA, emphasized the program’s disproportionate impact on independent drivers who have little control over their schedules. ATA President and CEO Chris Spear added that truckers are essential to New York City’s economic ecosystem, and the additional tolls unfairly penalized those who ensure the city’s supply chain remains operational.
Beyond the trucking industry, business leaders and policy analysts have debated the broader implications of the decision. Some argue that rescinding the program undermines efforts to address traffic congestion and environmental concerns in densely populated urban areas. Others contend that the decision reflects a more balanced approach to transportation policy, recognizing the economic realities faced by businesses and commuters.
Alternative Solutions to Address Urban Congestion
While the FHWA’s decision halts congestion pricing in its current form, the underlying issue of traffic congestion in New York City remains unresolved. Some experts have proposed alternative strategies, such as expanding the city’s microhub program to facilitate last-mile deliveries, incentivizing off-peak deliveries, and offering subsidies for electric vehicle conversions. These approaches, advocates argue, could help alleviate congestion and reduce emissions without imposing broad-based tolls on commercial and personal vehicle operators.
Looking Ahead: Policy Implications for Other Cities
The rescission of New York City’s congestion pricing plan may have broader implications for other municipalities considering similar initiatives. Cities such as San Francisco, Los Angeles, and Chicago have explored congestion pricing as a means of managing traffic flow and funding public transportation improvements. The federal government’s decision to withdraw support for New York’s plan could serve as a precedent for future policy discussions at the national level.
As policymakers and industry leaders continue to debate the merits and drawbacks of congestion pricing, the challenge remains to develop equitable and effective solutions that balance congestion mitigation, economic vitality, and transportation funding needs. Whether through revised tolling strategies, targeted investments in public transit, or innovative traffic management solutions, the conversation surrounding urban congestion is far from over.