The U.S. Department of Transport (DOT) issued a letter ordering the New York City Metropolitan Transportation Agency (MTA) to eliminate controversial busy tolls by mid-March.
The letter, dated and signed by Federal Highway Administration (FHWA) Executive Director Gloria Shepherd on February 20, released Wednesday, says the New York State Department of Transportation (NYSDOT) and its project sponsors “need to stop” the collection of tolls on the federal highways of New York’s Central Business District Toll Program by March 21.
The implementation of the program noted that DOT Secretary Sean Duffy was initially approved by the FHWA before sending a letter to close the program on February 19th.
Shepherd asked for agents and sponsors of the project to “end operations” in a “orderly manner” manner.
After crossing the Brooklyn Bridge in New York City, heavy traffic will lead you to the bottom of Manhattan. (AP Photo/Bebeto Matthews, file)
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Last week, the Trump administration issued a federal order halting the program, which began on January 5th, aiming to limit traffic and fund mass transport by adding a $9 toll to “most” vehicles entering Manhattan’s core, south of Central Park.
Despite Trump’s actions, tolls continue due to a federal lawsuit filed by the MTA, the state agency that operates public transport in New York City.
“Our position is clear. This is not a legal order. We have already filed a lawsuit. Now it’s up to the court to decide,” MTA’s policy and external relations chief John J. McCarthy wrote in a statement Wednesday.
Critics say the tolls will negatively affect suburban commuters and commuters who have no access to the subway system, causing an increase in costs for working-class Americans and small business owners. The “Cordon pricing” method of tolls means that drivers will have to pay the toll regardless of the road used, as there is no toll-free option.
President Donald Trump has suspended the program over concerns about working-class Americans and small businesses. (Donald Trump 2024 Campaign)
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Advocates argue that fees limit traffic congestion and reduce air pollution.
On Monday, the MTA announced that it generated $37.5 million in tolls from the Congestion Relief Zone (CRZ) generating $4866 million in revenue from January 5th to January 31st.
The numbers show that the program is on track to generate the $500 million that MTA initially predicted.
“We expect net revenues of $500 million, especially in a warm month when traffic volumes increase that bring confidence in forecasts,” said Jai Patel, MTA’s co-chief financial officer. “All metrics show that the program not only reduces traffic, but also predicts revenue that is the target for 4,000 pages of research and what we saw in the fall.”
Of the nearly $50 million generated since the start of the program in January, 22% came from taxis and employed vehicles ($10.6 million), 68% came from passenger cars, 9% from trucks, and 1% from buses and motorcycles.
Manhattan has become the country’s first city to implement a crowded pricing system. (AP Photo/Mary Altaffer, file)
Approximately 85% of non-tax and employed vehicles’ income is generated from passenger cars, and 15% reports that they are generated from trucks, buses and motorcycles. Additionally, 95% of revenue was generated during peaking traffic hours.
The cost from the program, which includes operating camera infrastructure and customer service, was $9.1 million. Considering an additional $2 million for mitigation efforts, the result was a net surplus of $37.5 million.
New York Governor Kathy Hochul, a supporter of the program, met with Trump to discuss the issue.
Democrats argued that the city is “numbed by the gridlock” and that the program could “make the city work again.”
“People in my state need to know that I am going to fight anywhere, wherever I am,” Hochul said.
New York Gov. Kathy Hochul is frank about her thoughts on the controversial fee program and has vowed not to finish it. (AP/Getty Images)
As the situation unfolds, Hochul said he expects the state case to win in court and the program will continue.
The Federal Highway Administration and NYSDOT signed a contract on November 21, 2024, and approved the Central Business District Fee Program (CBDTP) under the Value Pricing Pilot Program (VPPP).
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The VPPP, approved by Congress in 1991, is an exception to the general rule that abolishes highway tolls as a pilot to test congestion reduction technology.
New York is one of approximately 12 states that are permitted to implement the program.
Danielle Wallace, Charles Creitz and Stephen Sorace of Fox News Digital contributed to this report.
Alexandra Koch is a news writer for Fox News Digital. Before joining Fox News, Alexandra covered news, crime, religion and military in the Southeast.
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