By David Shepardson
(Reuters) – The Trump administration said on Wednesday it is rescinding approval of New York City’s congestion pricing program designed to reduce traffic and raise billions to upgrade New York’s aging subway and bus systems.
U.S. Transportation Secretary Sean Duffy said the move will halt the program that charges most drivers $9 to enter much of Manhattan and began on January 5 to provide support for the Metropolitan Transportation Authority.
He criticized the toll program that “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 program, passenger vehicles are charged $9 during peak periods in Manhattan south of 60th Street. Trucks and buses pay up to $21.60. The fee is reduced by 75% at night.
The city has estimated the congestion charge would bring in $500 million in its first year.
New York Governor Kathy Hochul said earlier the money would underpin $15 billion in debt financing for mass transit capital improvements. The program was approved in the final months of former President Joe Biden’s administration, while President Donald Trump, a New York real estate developer, has criticized the charge.
The MTA said it was going to court to defend the program that “has already dramatically reduced congestion, bringing reduced traffic and faster travel times, while increasing speeds for buses and emergency vehicles.”
Transit officials say the program has cut commuting times and that inbound trip times on all Hudson River and East River crossings are now 10% to 30% faster or more, while bus service has also improved. Subway ridership also has grown since the toll was introduced.
Representative Jerrold Nadler, a New York Democrat, said revoking approval for a federal initiative of such a magnitude is “nearly without precedent.”
“Its approval cannot be arbitrarily revoked, especially when it is clearly delivering tangible benefits,” Nadler said.
Charged via electronic license plate readers, private cars pay once a day regardless of how many trips they make into the central business district.
A few other cities around the world previously implemented congestion pricing systems. London, which began its system in 2003, now charges 15 pounds ($18.67). Singapore and Sweden also have congestion pricing plans.
Before the fee, New York said more than 700,000 vehicles entered the Manhattan central business district daily, slowing traffic to around 7 miles per hour (11 kph) on average, which is 23% slower than in 2010.
(Reporting by David Shepardson; Editing by Chizu Nomiyama, Bill Berkrot and Deepa Babington)
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