(NEW YORK) -- The U.S. Department of Transportation said the Federal Highway Administration has "terminated approval" of New York City's congestion pricing plan, the first of its kind in the nation, which went into effect earlier this year.
The DOT shared a letter from Transportation Secretary Sean Duffy to New York Gov. Kathy Hochul, in which he said a review found that the "scope of this pilot project as approved exceeds the authority authorized by Congress" under the Federal Highway Administration's Value Pricing Pilot Program.
"New York State's congestion pricing plan is a slap in the face to working class Americans and small business owners," Duffy said in a statement on Wednesday. "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. It's backwards and unfair."
The head of the Metropolitan Transportation Authority said it would challenge the reversal in federal court.
"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 from the millions of mass transit users, pedestrians and, especially, the drivers who come to the Manhattan Central Business District," MTA Chair and CEO Janno Lieber said in a statement.
"It's mystifying that after four years and 4,000 pages of federally-supervised environmental review -- and barely three months after giving final approval to the Congestion Relief Program -- USDOT would seek to totally reverse course," he added.
Hochul also confirmed that the MTA has initiated legal proceedings in the Southern District of New York "to preserve this critical program."
"We are a nation of laws, not ruled by a king," she said in a statement. "We'll see you in court."
The congestion pricing plan, which launched on Jan. 5, charged passenger vehicles $9 to access Manhattan below 60th Street during peak hours as part of an effort to ease congestion and raise funds for the city's public transit system. During peak hours, small trucks and charter buses were charged $14.40 and large trucks and tour buses $21.60.
On Donald Trump's first day in office, New Jersey Gov. Phil Murphy asked the president and his administration to "reexamine" the highly debated congestion pricing plan and its impact on the Garden State.
In a letter to Trump, Murphy requested that "New York's congestion pricing scheme receive the close look it deserved but did not receive from the federal government last year."
In his letter to Hochul, Duffy noted that Trump asked him to review the Federal Highway Administration's approval of the congestion pricing program upon assuming his position as secretary last month.
"In particular, the President expressed his concerns about the extent of the tolling that was approved by the Department of Transportation on highways that have been constructed with funds under the Federal-aid Highway Program and the significant burdens on the New York City residents, businesses, and area commuters (including those from New Jersey and Connecticut) who regularly use the highway network in the CBD tolling area," Duffy said.
Duffy also mentioned Murphy's letter to Trump, in which the governor "expressed significant concerns about the impacts that the imposition of tolls" on New Jersey commuters and residents.
The secretary also said there are pending legal challenges over the plan "which question whether the scope of the project exceeds the authority of VPPP."
Duffy said the Federal Highway Administration will contact the New York State Department of Transportation "to discuss the orderly cessation of toll operations under this terminated pilot project."
Trump celebrated the DOT's move on Wednesday, saying on his social media platform Truth Social, "CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!"
Murphy thanked Trump and Duffy for their efforts to halt the program.
"While I have consistently expressed openness to a form of congestion pricing that meaningfully protects the environment and does not unfairly burden hardworking New Jersey commuters, the current program lines the MTA's pockets at the expense of New Jerseyans," he said in a statement.
Nassau County Executive Bruce Blakeman also expressed his gratitude to Trump and Duffy for their efforts to terminate what he called an "oppressive tax on the hard-working families of the metropolitan area."
"Taxing people for the privilege of being on a public thoroughfare, to me, is wrong," he said during a press briefing on Wednesday.
The Metropolitan Transportation Authority, which manages the city's subways as well as bridges and commuter rails, has said the toll would enable it to issue $15 billion in bonds to help fund capital projects.
In response to Murphy's letter to Trump, Hochul told reporters last month that if the congestion pricing plan is ultimately killed, "that comes with $15 billion more" the federal government will need to give to New York.
Hochul touted the success of the program on Wednesday, saying that congestion has "dropped dramatically" since the congestion pricing went into effect last month.
"Broadway shows are selling out and foot traffic to local businesses is spiking. School buses are getting kids to class on time, and yellow cab trips increased by 10%," she said. " Transit ridership is up, drivers are having a better experience, and support for this program is growing every day."
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