A congestion pricing showdown between the Federal Highway Administration of the Department of Transportation of the United States and the departments of transportation of both the city and state of New York is underway, as the rescission of approval and termination of the original agreement for the Central Business District Tolling Program will be effective as of Friday, March 21, 2025.
Congestion Pricing Showdown. Grab Your Popcorn.
The following letter was sent by Gloria M. Shepherd — who is the current executive director of the Federal Highway Administration — to three recipients and is copied verbatim:
I am writing pursuant to Secretary Duffy’s February 19, 2025, letter terminating the November 21, 2024 Value Pricing Pilot Program (VPPP) Agreement under which the Federal Highway Administration (FHWA) has approved the implementation of tolls as part of the New York’s Central Business District Tolling Program (CBDTP). The Secretary’s letter stated that the FHWA will contact the New York State Department of Transportation (NYSDOT) and its project sponsors, Triborough Bridge and Tunnel Authority (TBTA) and New York City Department of Transportation (NYCDOT), to discuss the orderly cessation of toll operations under the CBDTP.
In order to provide NYSDOT and its project sponsors time to terminate operations of this pilot project in an orderly manner, this rescission of approval and termination of the November 21, 2024 Agreement will be effective on March 21, 2025. Accordingly, NYSDOT and its project sponsors must cease the collection of tolls on Federal-aid highways in the CBDTP area by March 21, 2025. Please work with Rick Marquis, the FHWA’s New York Division Administrator, to provide the necessary details and updates regarding the cessation of toll operations.
Recipients of that letter include:
- Marie Therese Dominguez, who is the current commissioner of the Department of Transportation of the state of New York
- Ydanis Rodriguez, who is the current commissioner of the Department of Transportation of the state of New York
- Catherine T. Sheridan, who is the president of bridges and tunnels of the Metropolitan Transportation Authority of New York
The Federal Highway Administration initially terminated approval of the pilot for the Central Business District Tolling Program on Wednesday, February 19, 2025 as the result of an order to halt the congestion pricing program that was issued from the current president of the United States. Sean P. Duffy — who is the current secretary of the Department of Transportation — sent a letter to Kathy Hochul that outlined the reasons why the agreement that was signed under the Value Pricing Pilot Program on Thursday, November 21, 2024 was officially rescinded; but the current governor of the state of New York responded with a blistering official rebuttal.
The Central Business District Tolling Program has generated $48.66 million in revenue during its first 27 days, according to this official press release from the Metropolitan Transportation Authority of New York, with the net operating revenue at $37.5 million dollars after expenses and operating costs. At that rate, the program could generate almost $600 million in annual revenue, which exceeds the original estimate of $500 million for 2025.
“The Trump Administration is once again trying to overrule New Yorkers”, Kathy Hochul posted at her official X social media account. “They’re about to find out what happens when you piss off 6 million New York commuters.”
The Trump Administration is once again trying to overrule New Yorkers.
They're about to find out what happens when you piss off 6 million New York commuters. pic.twitter.com/K8M5XK4FQY
— Governor Kathy Hochul (@GovKathyHochul) February 26, 2025
Meanwhile, protests and rallies have been held in Manhattan in favor of the congestion pricing program, with the latest one at Union Square on Saturday, February 22, 2025.
Traffic congestion on the streets of the lower half of Manhattan south of East 60 Street and West 60 Street has reportedly been significantly reduced since the Central Business District Tolling Program became effective.
A Brief History of the Congestion Pricing Program
On Tuesday, August 16, 2022, this article here at The Gate With Brian Cohen first reported that a congestion pricing program may be coming to the city of New York — along with a plethora of information that led to that initial proposal.
The toll rates were then revealed after members of the board of the Metropolitan Transportation Authority overwhelmingly voted to approve congestion pricing in the city of New York on the morning of Wednesday, December 6, 2023 — and the cost would initially be a minimum of $15.00 per day for passenger vehicles before the program was paused indefinitely on Thursday, June 6, 2024.
Despite the “indefinite pause”, the New York Congestion Pricing Program became effective as of Sunday, January 5, 2025 at midnight pursuant upon approval by the board of the Metropolitan Transportation Authority at its meeting on Monday, November 18, 2024. The toll was reduced to nine dollars per day for the initial implementation of the program; and the following schedule of the cost for motorists to enter the lower half of Manhattan was announced with a daytime automobile E-ZPass toll of:
- $9.00 from 2025 through 2027
- $12.00 from 2028 through 2030
Final Boarding Call
…but that was before the termination of the program by the federal government of the United States — and the showdown has begun. With a revenue of almost $50 million per month on the line and chances to increase that revenue, both the city and state of New York — as well as the Metropolitan Transportation Authority — are going to fight to the bitter end to keep the Central Business District Tolling Program going.
Grab your popcorn, as this will be an interesting — and very expensive — legal case…
All photographs ©2025 by Brian Cohen.
