On 20 February 2025 the Executive Director of the US Federal Highways Administration wrote to the Commissioners of the New York State and City Departments of Transportation and the President of the MTA as follows, essentially requesting that the New York congestion charging scheme cease to operate from 21 March 2025 on "Federal aid highways":
Dear Commissioner Dominguez, Commissioner Rodriguez, and President Sheridan:
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.
A Federal aid highway covers all Interstates and the Primary road system (FAP) and Secondary road system (FAS), so does not cover all roads within the zone, but it does include some.
This follows a letter to the Governor of New York from the Secretary of Transportation expressing concern about the scheme's burden upon people in New York and New Jersey:
I share the President’s concerns about the impacts to working class Americans who now have an additional financial burden to account for in their daily lives. Users of the highway network within the CBD tolling area have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes. The recent imposition of this CBDTP pilot project upon residents, businesses, and commuters left highway users without any free highway alternative on which to travel within the relevant area. Moreover, the revenues generated under this pilot program are directed toward the transit system as opposed to the highways. I do not believe that this is a fair deal.
The use of revenues is clearly a key issue, but the misconstruing of the need for a fee to enable people without a free alternative is unfortunate.
I have concluded that the scope of this pilot project as approved exceeds the authority authorized by Congress under VPPP.
This is hotly debated. The Secretary's claims are that the legislation enabling the scheme did not envisage cordon pricing, compared to conventional tolls. The other key claim is that as the scheme is primarily designed to raise revenue, not reduce congestion, then it is outside the scope of the Value Pricing Pilot Program.
By contrast, the Governor of New York, Kathy Hochul is pushing back. Here is her speech to the MTA Board. and her statement on receipt of the letter from the Secretary of Transportation.
Her main claim is that it is not for the Federal Government to stop New York from introducing pricing on its roads. She is litigating against the claim of the Secretary of Transportation.
So the battle for New York congestion charging goes to the courts...
