Trump moves to end NYC congestion pricing, but Hochul fights back: What happens next?

New York Gov. Kathy Hochul says she's not backing down from New York City’s congestion pricing plan, even after the Trump administration moved to end the toll.

Hochul and the MTA insist the plan is still in place, while a lawsuit has been filed in response to the federal government's decision.

‘Slap in the face’

What we know:

Transportation Secretary Sean Duffy sent a letter to Hochul, dated Wednesday, informing her that the DOT's Federal Highway Administration would terminate the approval of the controversial program.

The letter says, in part: "The president expressed his concerns about the extent of the tolling," adding "and the significant burdens on the New York City residents, businesses and area commuters." 

The department said it rescinded a Nov. 21 agreement signed under the Value Pricing Pilot Program, effectively ending NYC's authority to impose the toll. The letter ended with a statement saying the congestion pricing program would be terminated.

Duffy called the toll a "slap in the face" to working class Americans and small business owners.

"As detailed in the letter, the Secretary is terminating the pilot for two reasons," the DOT detailed in a press release. "First, the scope of the CBDTP is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in this major urbanized area. Second, the toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion. By doing so, the pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction – not transit revenue generation."

"CONGESTION PRICING IS DEAD," Trump posted on Truth Social. "Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!"

Gov. Hochul responds

What they're saying:

In a fiery press conference at Grand Central Terminal, Hochul responded to the news, saying, "I'm here to say New York hasn't labored under a king in over 250 years," and added, "we sure as hell are not gonna start now."

"I don't care if you love congestion pricing or hate it, this is an attack on our sovereign identity, our independence, from Washington," she said.

She continued on to say: "In case you don't know New Yorkers, we do not back down, not now, not ever" – making clear that "the cameras are staying on" despite what she called Trump's "attempt" to end congestion pricing.

Hochul also stated that if congestion pricing were to be halted, "the next time you're stuck in traffic, you’ll know who to blame" as she held up a cover of TIME magazine featuring Trump.

‘Destructive to New York’

The other side:

Trump has repeatedly criticized congestion pricing, claiming that it's hurting businesses. He called these $9 tolls to get into the Central Business District "destructive to New York."

"Congestion pricing is not a good situation," Trump told reporters on Air Force One. "They're treating the people of New York very badly."

Meanwhile, the MTA board doubled down on what they say are the benefits of the tolling program, reporting that since it went into effect, traffic has been down 9%. But it's a statistic that Trump believes is problematic.

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"Traffic will go down because people aren’t going to come," Trump said. "If people don't come, that means the whole place is, it's going to be a disaster. That means they’re not going to spend their money in New York."

The MTA has responded to the Trump administration's move with a lawsuit, arguing that congestion pricing is essential for funding subway and bus improvements. A significant portion of the program’s revenue was earmarked for public transit enhancements, including station accessibility upgrades and the long-awaited extension of the Q subway line into Harlem.

Congestion pricing meaning

The backstory:

New York City's congestion pricing program, launched back in January, imposes a $9 toll on most drivers entering Manhattan below 60th Street.

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The landmark initiative, which began on Sunday, is designed to reduce traffic congestion, improve air quality and raise funds for much-needed public transit upgrades.

The landmark initiative was designed to reduce traffic congestion, improve air quality and raise funds for much-needed public transit upgrades, although critics have said it is just one more unfair cost to commuters to fund the MTA.

Big picture view:

Similar toll programs for getting people into public transit by making it cost-prohibitive to drive have long existed in other global cities, including London, Stockholm, Milan and Singapore, but the system had never been tried before in the U.S.

New York intends to use the money from tolls to issue bonds that would fund billions of dollars in improvements and repairs for the city’s creaky and cash-strapped transit system, which carries some four million riders daily.

Is congestion pricing still in effect?

What's next:

Within minutes of the announcement, the MTA filed a lawsuit, and until a judge issues a verdict, "we're not turning off the tolls," MTA Chair Janno Lieber said. The governor echoed a similar sentiment, saying the toll program would continue while the lawsuit plays out.

New York CityMTADonald J. TrumpKathy Hochul