Important Takeaways:

• The Trump administration on Wednesday nixed federal approval of New York’s “congestion pricing” automobile tolls, which had been instituted just last month to raise funds for the region’s aging mass transit system.
• In a letter to New York Gov. Kathy Hochul, U.S. Transportation Secretary Sean Duffy said the federal government has jurisdiction over highways leading to Manhattan and that these additional tolls posed an unfair burden in motorists outside the city.
• “New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” Duffy said in statement.
• “Commuters using the highway system to enter New York City have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes. But now the toll program leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways.”
• Under the system, most cars entering Manhattan’s central business district — from 60th Street all the way down to the southern tip of the Financial District — had to pay a peak fee of $9 from 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends.
• “Today, the MTA filed papers in federal court to ensure that the highly successful program — which has already dramatically reduced congestion, bringing reduced traffic and faster travel times, while increasing speeds for buses and emergency vehicles — will continue notwithstanding this baseless effort to snatch those benefits away,” MTA Chairman and CEO Janno Lieber said.

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