New York marked the first anniversary Monday of its congestion pricing program, but it remains at risk from the U.S. Department of Transportation, which has sought to terminate the program for nearly a year. Congestion pricing will have its day in court Jan. 28, when oral arguments will be heard in a suit filed by the New York Metropolitan Transportation Authority against the DOT.
Transportation Secretary Sean Duffy rescinded the Federal Highway Administration’s approval of the state’s congestion pricing program on Feb. 19, 2025, calling the plan “a slap in the face to working-class Americans and small business owners.” New York Gov. Kathy Hochul vowed to keep the program operating.
After a year, fears of an economic downturn stemming from congestion pricing failed to materialize. Instead, office leasing grew over 9% in Manhattan, the number of private sector jobs in the toll zone increased and there were fewer vacant storefronts in the zone, according to an MTA news release.
Data shows reductions in air pollution, traffic congestion and vehicle collisions within the tolling zone. Traffic is flowing faster on bridges and tunnels into and out of Manhattan, according to the MTA, and transit ridership into the tolling zone grew 8% on buses and 9% on subways through September.
“One year of congestion pricing in New York has been an unmitigated success for commuters and the climate,” Evergreen Action Senior Policy Lead for Transportation Liya Rechtman said in a statement.
The tolling plan also aims to raise funds for the MTA’s capital projects. By November, the program had netted $518 million in toll revenue, exceeding projections. These revenues, when leveraged with bond issuance, are helping to fund the Second Avenue subway extension to East Harlem, make accessibility improvements at subway and rail stations, modernize subway signal systems and pay for new subway and commuter rail cars, the MTA says.
“All New Yorkers are benefiting, with new investments in mass transit and other projects that make it easier to get around without a car,” New York City Department of Transportation Commissioner Mike Flynn said in a statement.
But the battle to keep the program going continues.
U.S. District Judge Lewis Liman, who issued a temporary restraining order last year prohibiting the DOT from taking any action to stop the congestion pricing program, will preside over the upcoming hearing. Even if the court’s ruling favors the MTA, however, there are more unresolved lawsuits from a variety of parties.
The state of New Jersey sued the U.S. Transportation Department last year over the Federal Highway Administration’s approval of New York’s tolling plan. New Jersey Gov. Phil Murphy said in a Nov. 14, 2024, statement that the state “has never been meaningfully consulted on the design of this plan,” and alleged that “this effort has always simply been a way to take money from the pockets of New Jersey residents.”
Other pending suits come from Town of Hempstead, New York, Supervisor Donald Clavin and New York State Assembly Member Jake Blumencranz, representing Oyster Bay. Both represent suburban Long Island communities.
The Trucking Association of New York also sued the MTA, claiming that delivery trucks were singled out as the only vehicle class not granted a full or partial toll exemption.
Congestion pricing advocates dismissed these concerns. “Of the entire parade of horribles that the program’s opponents threatened, just one has come true: Success has once again proven the worth of government action and emboldened everyday New Yorkers to continue to tackle persistent challenges together,” Riders Alliance Policy and Communications Director Danny Pearlstein said in a statement.
