Trump administration sets deadline for NYC to shut down controversial congestion pricing toll

The U.S. Department of Transportation issued a letter ordering the Metropolitan Transportation Authority to eliminate its congestion pricing toll in New York City by March 21.

Heavy traffic enters Lower Manhattan after crossing the Brooklyn Bridge in New York City. (AP Photo/Bebeto Matthews, File)

TRUMP ADMIN MOVES TO BLOCK NYC CONGESTION TOLL PROGRAM

Last week, the Trump administration issued a federal order halting the program, which began Jan. 5 and aimed to limit traffic and fund mass transit by adding a $9 toll on "most" vehicles entering Manhattan's core south of Central Park.

Despite Trump's action, the tolls have continued due to a federal lawsuit filed by the MTA, a state agency that runs public transit in New York City

"Our position is clear: this is not a lawful order. We have already filed a lawsuit and now it’s up to the courts to decide," John J. McCarthy, MTA chief of policy and external relations, wrote in a statement on Wednesday.

Critics say the tolling negatively impacts suburban commuters or those without access to the subway system, causing increased costs for working-class Americans and small business owners. The "cordon pricing" method of tolling means drivers are required to pay a toll regardless of which roads they use, as there are no toll-free options.

Manhattan became the nation's first city to enforce a congestion pricing system.  (AP Photo/Mary Altaffer, File)

About 85% of non-taxi and for-hire vehicles revenue was generated from passenger vehicles, and 15% was generated from trucks, buses, and motorcycles, the agency reported. And 95% of revenue was generated during peaking tolling hours.

Expenses from the program, which include operating camera infrastructure and customer service, amounted to $9.1 million. Factoring in another $2 million for mitigation efforts, the results were a net surplus of $37.5 million.

New York Gov. Kathy Hochul, a proponent of the program, met with Trump to discuss the issue.

The Democrat claimed the city is "paralyzed with gridlock," and the program could "make the city move again."

"The people in my state need to know I'm willing to take the fight wherever I have to," Hochul said.

New York Gov. Kathy Hochul has been outspoken about her thoughts on the controversial tolling program, vowing not to end it. (AP/ Getty Images)

As the situation unfolds, Hochul said she expects the state's case to be won in court and the program will continue.

The Federal Highway Administration and NYSDOT entered into an agreement on Nov. 21, 2024, approving the Central Business District Tolling Program (CBDTP) under the Value Pricing Pilot Program (VPPP). 

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The VPPP, which was approved by Congress in 1991, is an exception to the general rule outlawing tolling on highways as a pilot to test congestion reduction techniques. 

New York is one of about a dozen states allowed to implement the program. 

Fox News Digital's Danielle Wallace, Charles Creitz and Stephen Sorace contributed to this report.

Alexandra Koch is a breaking news writer for Fox News Digital. Prior to joining Fox News, Alexandra covered breaking news, crime, religion, and the military in the southeast.

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