Trump Administration Strikes Back: The Battle Against NYC’s Congestion Pricing Plan | CNN Business

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Trump Administration Strikes Back: The Battle Against NYC’s Congestion Pricing Plan | CNN Business

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The Biden administration is stopping New York City’s congestion pricing plan. This program was meant to reduce traffic in busy areas and raise funds for the city’s aging infrastructure. The tolls aimed to make driving into parts of Manhattan during peak hours more expensive, hoping to ease congestion and bring in millions of dollars.

In a recent letter, US Transportation Secretary Sean Duffy informed Governor Kathy Hochul that the federal government would withdraw its support for the tolling structure that took effect earlier this year. Duffy criticized the plan, stating that it unfairly targets working-class Americans and small businesses. He argued that everyone should be able to visit New York City without facing high costs.

The congestion pricing program charged drivers $9 during rush hours and $2.25 at night for entering Manhattan south of 60th Street. It included discounts and exemptions for low-income drivers. The idea was to ease traffic congestion and fund public transportation improvements.

Duffy claimed that the city’s tolling system conflicts with federal highway laws. He pointed out that drivers using the highways have already paid for their construction through taxes, and he argued that the toll system places extra financial burdens on them. He also noted a lack of alternative routes for those who need to drive into the city.

The response in New York has been swift. Janno Lieber, head of the Metropolitan Transportation Authority, called the federal action unfounded, arguing that the program has helped lower traffic congestion and improve travel speeds for emergency vehicles. The MTA has filed a lawsuit to challenge the federal order.

President Trump, who lives in the affected area, has openly opposed the congestion pricing plan. In a social media post, he celebrated the Department of Transportation’s directive, declaring, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED.”

Governor Hochul criticized the federal government’s decision. She emphasized that the U.S. is a nation governed by laws, not by the whims of a single individual. She described the move as an attack on New York’s identity and independence from federal oversight.

This decision surprised Hochul, especially since she had been working to keep the program alive. She had been discussing the program with Trump and presenting data to show it was not discouraging visitors from coming to the city.

Opposition to congestion pricing has created challenges for Hochul, as it is unpopular in some areas outside of New York City. Critics, including Staten Island Borough President Vito Fossella, welcomed the federal action, arguing that the plan would have led to more traffic and pollution.

New Jersey Governor Phil Murphy also supported halting the program, stating that it unfairly imposed costs on New Jersey commuters who travel to Manhattan daily.

Despite the controversy, early data suggested the program was making a positive impact. Car traffic had decreased, with about 1.2 million fewer vehicles entering the congestion zone in January compared to the previous year. Travel times had improved significantly, making commutes easier during busy hours. Moreover, business activity in lower Manhattan increased, indicating that the tolls might not have diminished visitors as some feared.

Overall, the future of congestion pricing in New York City remains uncertain as the state and federal officials prepare for legal battles over the program.

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