WASHINGTON – The U.S. Department of Transportation’s Federal Highway Administration is terminating approval of the pilot for New York’s Central Business District Tolling Program (CBDTP).
In a letter to New York Governor Kathy Hochul, the Department rescinded a Nov. 21, 2024 agreement signed under the Value Pricing Pilot Program (VPPP). It effectively ends tolling authority for New York City’s cordon pricing plan. The plan imposes tolls on drivers entering Manhattan below 60th Street.
Slap in the Face to Working Class
“New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” said U.S. Transportation Secretary Sean Duffy. “Commuters using the highway system to enter New York City have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes.”
No Free Highway Alternative
“But now the toll program leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways,” Duffy said. “It’s backwards and unfair. The program also hurts small businesses in New York that rely on customers from New Jersey and Connecticut. Finally, it impedes the flow of commerce into New York by increasing costs for trucks, which in turn could make goods more expensive for consumer. Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few.”
Highways Constructed with Federal-aid Highway Funds Cannot be Tolled
The construction of federal-aid highways as a toll-free highway system has long been fundamental to the Federal-aid highway program. Except for limited exceptions allowed by Congress, highways constructed with Federal-aid highway funds cannot be tolled. The construction of Federal-aid highways as a toll-free highway system has long been fundamental to the Federal-aid highway program. The VPPP is one of the exceptions to the general prohibition against tolling.
Reasons for Termination
As detailed in the letter, the Secretary is terminating the pilot for two reasons.
- The scope of the CBDTP is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in this major urbanized area.
- The toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion. By doing so, the pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction – not transit revenue generation.
The Federal Highway Administration will work with the project sponsors on an orderly termination of the tolls.
Owner-Operator Independent Drivers Association Applauds Change
“OOIDA and the thousands of small business truckers who operate in New York City welcome USDOT’s decision to rescind tolling authority for New York ‘s congestion pricing plan,” said Todd Spencer, OOIDA president. “Truckers often have very little control over their schedules, so this congestion pricing plan is particularly problematic for owner-operators and independent drivers.
“We routinely have no other choice than to drive through metropolitan areas during periods of high congestion because of the rigidity of current federal hours of service requirements. Additionally, shippers and receivers generally have little regard for a driver’s schedule, frequently requiring loading and unloading to occur at times when nearby roads are most congested. New York City’s congestion pricing plan was anti-trucker to begin with and we will continue fighting to ensure it doesn’t come back. Beyond New York City, we encourage the Trump Administration and Congress to fight the expansion of tolling across the country.”
President Trump Asked for Program Review
In the letter, Duffy said the President asked him to review the FHWA’s approval of the program under VPPP. Trump expressed his concerns about the burden the program placed upon residents, business and area commuters.
“I share the President’s concern’s about working class American’s who now have an additional financial burden to account for in their daily lives,” Duffy said.
You can view a full copy of the letter here.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
