In a Feb. 19 letter, Department of Transportation Secretary Sean Duffy informed New York Gov. Kathy Hochul that the Federal Highway Administration has revoked its approval of the Central Business District Tolling Program, better known as congestion pricing (https://www.prepassalliance.org/how-nycs-congestion-pricing-will-impact-the-trucking-industry/).
The tolling program began January 5, 2025. A termination date is not yet known.
Tolling of existing lanes of federally funded highways is not legal. But a federal program, the Value Pricing Pilot Program (VPPP), makes an exception for 15 states, including New York. Secretary Duffy, however, said the New York City scheme failed to meet VPPP standards for two reasons:
- First, the New York plan does not offer motorists any route to avoid the tolls. All other tolling plans approved under the VPPP offer alternative routes without tolls.
- Second, the funds from the Central Business District Tolling Program go into the coffers of the Metropolitan Transit Authority, which operates the New York subway system. The toll rates were set to meet MTA’s budgetary needs rather than reduce congestion, the purpose of the VPPP program.
In making his announcement, Secretary Duffy also mentioned the impact the tolling program had on trucking, increasing operating costs which must be passed on to consumers. The tolling plan was opposed by the Trucking Association of New York, the American Trucking Associations, and the Owner-Operator Independent Drivers Association. Simply put, freight does not ride the subways.
The Metropolitan Transit Authority said it will challenge the legality of Secretary Duffy’s decision.