The Trump administration has issued a firm deadline for New York to abandon its congestion pricing plan, a move that has sparked immediate backlash from Governor Kathy Hochul. The administration’s directive aims to halt the implementation of the controversial tolling system, which was set to charge drivers entering Manhattan’s central business district.

However, Hochul has made it clear that New York will not comply, calling the decision an attempt to “overrule New Yorkers” and dictate the state’s transportation policies.

What Is Congestion Pricing?

Congestion pricing is a traffic management strategy designed to reduce congestion by imposing fees on vehicles traveling through specific high-traffic zones. New York’s plan, which was set to launch later this year, would have charged most drivers at least $15 to enter Manhattan below 60th Street. The revenue generated—estimated at $1 billion annually—was earmarked for improvements to the Metropolitan Transportation Authority (MTA), including subway and bus upgrades.

Despite initial federal approval under the Biden administration, the Trump administration has reversed course, demanding the state halt the program immediately.

Trump Administration’s Argument Against Congestion Pricing

The administration’s opposition to congestion pricing is based on several factors, including economic concerns and its potential impact on commuters. According to Transportation Secretary Mike Johnson, the policy would impose an unfair financial burden on drivers, particularly those commuting from lower-income neighborhoods and New Jersey.

“New Yorkers and the surrounding communities should not be subject to yet another tax disguised as a toll,” Johnson said in a statement. “The administration is committed to ensuring that federal transportation policies do not disproportionately harm hardworking Americans.”

In addition to financial concerns, opponents argue that the plan could push traffic into outer boroughs and surrounding areas, leading to increased congestion in places like Brooklyn, Queens, and the Bronx. The administration has given New York officials until the end of the month to comply with the shutdown order.

Hochul’s Defiant Response

Governor Hochul swiftly responded, rejecting the Trump administration’s directive and reaffirming the state’s commitment to congestion pricing. She described the federal order as a blatant overreach, stating that New York’s transportation policies should be decided by New Yorkers—not Washington.

“We will not allow this administration to dictate how we manage traffic and public transportation in New York City,” Hochul said. “This plan was designed to improve our subways, reduce pollution, and address congestion that has plagued our city for decades. The federal government should not be in the business of overstepping states’ rights.”

Hochul emphasized that congestion pricing had undergone extensive reviews and public hearings, and she criticized the sudden shift in federal policy. She also pointed out that several other cities, including London and Stockholm, have successfully implemented similar pricing models.

Political and Economic Fallout

The battle over congestion pricing is quickly becoming a heated political issue, with both sides using it to rally their supporters. New York City Mayor Eric Adams has backed Hochul, calling the Trump administration’s move a “political stunt” designed to undermine state authority.

On the other hand, some local politicians, particularly those representing suburban communities, have praised the federal intervention. New Jersey Governor Phil Murphy, who has long opposed the tolling plan, described it as “a win for New Jersey drivers” and vowed to continue fighting congestion pricing in court.

Economists and transit experts warn that halting the plan could have long-term consequences for New York’s transportation infrastructure. The MTA, which is already facing financial struggles, had been counting on congestion pricing revenue to fund essential upgrades. Without this funding, the agency may be forced to cut services or raise fares.

What Happens Next?

With Hochul refusing to comply, the conflict is expected to head to the courts, setting up a legal showdown over state vs. federal authority. The MTA has stated that it will continue moving forward with the congestion pricing rollout unless legally forced to stop.

Legal experts predict that the case could take months to resolve, leaving New Yorkers in limbo as they await the fate of the tolling system. If Hochul prevails, congestion pricing could still take effect, providing much-needed revenue for the city’s transit system. However, if the federal government succeeds, it could set a precedent for increased federal control over state infrastructure projects.

For more updates on this developing story, visit The New York Times.

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