The Trump administration is set to deliver a significant setback to New York Governor Kathy Hochul by withdrawing its approval of the city's contentious congestion pricing scheme.
The move, which is expected to be announced on Wednesday, has been described as a "backwards and unfair" policy that disproportionately affects working-class Americans and small business owners. This information was obtained by The New York Post.
The Federal Highway Administration, a division of the U.S. Department of Transportation, will terminate the approval of the controversial program, as revealed in a letter from Transportation Secretary Sean Duffy to Governor Hochul. Duffy criticized the plan, stating, New York States congestion pricing plan is a slap in the face to working class Americans and small business owners. He argued that the toll program unfairly burdens drivers who have already contributed to the construction and improvement of city roads through their taxes.
Duffy further lambasted the scheme, saying, Its backwards and unfair, and highlighted the potential harm to small businesses in New York City that rely on customers from neighboring states like New Jersey and Connecticut. The toll program, he argued, leaves drivers without any free highway alternative and instead, extracts more money from working people to fund a transit system, not highways.
The department will officially revoke the agreement signed on November 21 under the Value Pricing Pilot Program (VPPP) that imposed a hefty $9 surcharge for drivers entering Manhattan below 60th Street starting in January. Duffy emphasized, Every American should be able to access New York City regardless of their economic means. It shouldnt be reserved for an elite few.
The congestion pricing toll, according to the department, contradicts the federal highway aid program, which bans tolling on roads built with federal funds unless Congress grants an exception. Duffy's letter to Hochul, as viewed by The New York Post, further explains his rationale for terminating the pilot, including its failure to provide a toll-free alternative for drivers who have no other option but to use city roads.
The letter also asserts that the toll rate, which instantly made New York City the most expensive city in the U.S. to drive in, was established to generate revenue for the Metropolitan Transportation Authority (MTA) rather than to reduce congestion, which was the plan's stated purpose. Duffy stated, The pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction not transit revenue generation.
Duffy also addressed the potential financial impact on the transit system, writing, To be sure, the termination of the program may deprive the transit system of funding, but any reliance on that funding stream was not reasonable given that [Federal Highway Administration] approved only a pilot project.'
When questioned about the toll scheme's efficacy last month, Governor Hochul responded, Therell be more data than you can imagine. Today is the first day, I wouldnt count todays data. Lets give it a few days to sink in and get a trend.
The scheme, aimed at raising billions to fund the transportation network's $15 billion 2020-2024 capital improvement plan, was so unpopular that New York City drivers began finding ways to avoid the surcharge within days of its implementation.
The Department of Transportation has committed to working with the project sponsors on an orderly termination of the tolls, although the exact timeline for when the tolls will stop being collected remains unclear. This decision marks a significant victory for those who have criticized the scheme as an undue burden on the working class and small businesses, reinforcing the importance of economic accessibility in urban planning.
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