A political and legal fight is brewing over New York City's congestion tolling pilot program, with the Trump administration ordering the program to shut down, and New York vowing to fight back.

The tolling program was first proposed in 2023 as a way to reduce traffic in New York's busy Manhattan borough, although it's been plagued by fits and starts, and consistently faced criticism from businesses and lawmakers alike. In June 2024, New York Governor Kathy Hochul paused the program less than a month before it was originally scheduled to begin, saying at the time that it would risk "too many unintended consequences." An updated version of the pilot with lower tolling rates was approved by the Metropolitan Transportation Authority (MTA) in November, with the program finally taking effect on January 5, 2025. 

But, in a letter to New York Governor Kathy Hochul, U.S. Transportation Secretary Sean Duffy ordered her to end the tolling program, labeling it a "slap in the face to working class Americans and small business owners." 

"Every American should be able to access New York City regardless of their economic means," Duffy said. "It shouldn’t be reserved for an elite few.”

Although Duffy asserts that his office is unilaterally terminating the program, it's unclear if the federal government actually has that authority. According to a statement from Governor Hochul, the MTA has already filed a lawsuit challenging Duffy's order.

"We are a nation of laws, not ruled by a king," Hochul said. "We'll see you in the court." 

Data from the MTA found that weekday traffic inside the Manhattan toll zone dropped by 9% in the first week of February, compared to that same period in the previous year. Through the end of January, foot traffic into the area also rose by nearly 5% year-over-year, while in the first week of the pilot, travel times to drive across bridges and tunnels into Manhattan decreased by 11-63%, depending on the route. MTA Express bus ridership rose by 6% in the program's opening week as well. 

The tolling pilot currently charges passenger vehicles and smaller commercial vehicles $9 once a day during peak periods, as well as $14.40-21.60 for commercial trucks depending on size. The program is the first of its kind to be introduced in the U.S., mirroring similar systems that have been used in cities like London and Singapore.