The U.S. Department of Transportation is withdrawing its support for the Metropolitan Transit Authority (MTA) of New York City’s controversial congestion pricing plan and will discuss with the state and stakeholders how to end the program, the agency announced Wednesday, Feb. 19, 2025.
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New York City collected $48.6 million in revenue from the first month of its congestion pricing program that the Trump administration has moved to kill, a transit agency said.
The Metropolitan Transportation Authority (MTA) said on Monday that in January the program reduced congestion and raised $48.6 million with $11.1 million in expenses and net operating revenue of $37.5 million. New York Governor Kathy Hochul met with President Donald Trump on Friday to make the case for the congestion pricing program.
Under the program, which launched on January 5, most passenger vehicles are charged $9 during peak periods to enter Manhattan south of 60th Street. Trucks and buses pay up to $21.60. The fee is reduced by 75% at night.
The MTA, which has issued $900 million in debt for the congestion system infrastructure costs and capital projects, projected Monday it is on track to raise $500 million in net revenue the first year, noting it only collected revenue for 27 days in January.
In total, 68% of revenue came from passenger vehicles, 22% taxis and ride share vehicles, 9% from trucks and 1% motorcycles and buses.
The MTA sued last week seeking to block Trump’s effort to terminate the program.
Hochul has said that funds raised from the program would underpin $15 billion in debt financing for mass transit capital improvements.
The program was approved in the final months of former President Joe Biden’s administration.
Charged via electronic license plate readers, private cars pay once a day regardless of how many trips they make into the central business district.
A few other cities have implemented congestion pricing systems. London, which began its system in 2003, now charges 15 pounds ($18.70). Singapore and Sweden also have congestion pricing plans.
Before the fee, New York said more than 700,000 vehicles entered the Manhattan central business district daily, slowing traffic to around 7 miles per hour (11 kph) on average, which is 23% slower than in 2010.
