Trump administration moves to end New York City's congestion pricing

By David Shepardson and Julia Harte

(Reuters) - The Trump administration said on Wednesday it was rescinding federal approval of New York City's congestion pricing program that is designed to reduce traffic and raise money to upgrade aging subway and bus systems.

U.S. Transportation Secretary Sean Duffy said the move will halt a 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, which launched on January 5, most passenger vehicles are charged $9 during peak periods to enter Manhattan south of 60th Street. Trucks and buses pay up to $21.60. The fee is reduced by 75% at night.

The Metropolitan Transportation Authority and a New York bridge authority quickly filed suit in Manhattan seeking to block the move. They said the decision was made "for blatantly political reasons" - to uphold a campaign promise of Republican U.S. President Donald Trump.

Trump touted the move on social media and wrote: "LONG LIVE THE KING!" The White House posted a mock photo of him on social media wearing a crown.

New York Governor Kathy Hochul, who has said that funds raised from the program would underpin $15 billion in debt financing for mass transit capital improvements, said the program had been a huge success, reducing commuting times and helping kids riding school buses get to classes on time.

"This is an attack on our sovereign identity, our independence from Washington. We are not subservient to a king or anyone else out of Washington," Hochul said at a press conference at a New York train station.

"The commuters of our city and our region are now the roadkill on Donald Trump's revenge tour against New York."

Congestion pricing, which the city has estimated would bring in $500 million in its first year, was approved in the final months of former President Joe Biden's administration. As it involved tolls on federal highways, it required U.S. approval.

Transit officials say the program has cut commuting times and that inbound trip times on all Hudson River and East River crossings are now 10-30% faster or more, while bus service has also improved. Subway ridership also has grown since the toll was introduced.

"Speeds are up, up, up. The streets are safer, half as many crashes, and that means pedestrians are not getting injured and killed," MTA CEO Janno Lieber said.

U.S. Representative Jerrold Nadler, a New York Democrat, said revoking federal approval is "nearly without precedent."

"Its approval cannot be arbitrarily revoked, especially when it is clearly delivering tangible benefits," Nadler said.

New Jersey Governor Phil Murphy, a Democrat who has opposed the program, praised Trump and Duffy for their efforts to halt it. He said the program gives the MTA excess funds at the expense of New Jersey commuters.

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 have implemented congestion pricing systems. London, which began its system in 2003, now charges 15 pounds ($18.70). 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, Julia Harte and Brendan O'Brien; Editing by Deepa Babington, Rosalba O'Brien and Nia Williams)