The New York City congestion pricing plan has been an ongoing saga for New Jersey and New York drivers. The plan was first announced in 2021, halted weeks before it was set to take effect in June 2024, and a revised plan was officially implemented in January 2025. The plan has been met with much criticism from drivers and State officials alike. In most recent news, President Donald Trump announced plans to end congestion pricing in February 2025. The Hoboken Girl is sharing the most recent information on congestion pricing and what the next steps are after President Trump’s announcement. Read on for the latest updates on the New York City congestion pricing plan.

Status Quo

January 5th, 2025 was the first day of the new congestion pricing plan. Before its implementation, the plan was the subject of extensive debate between supporters and detractors, public transit advocates, taxpayer groups, and even the states of New York and New Jersey.

The plan created a toll structure that mandated a $9 congestion pricing fee for all non-commercial vehicles entering Manhattan south of 60th Street.  Despite the controversial nature of the plan, the goal is to raise $15 billion for MTA system improvements and to reduce gridlock in midtown and lower Manhattan.

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Per the New York Times, observers noted reduced vehicular traffic in the zone and anecdotally faster bus trips since the congestion pricing plan began.

What's Next

On Wednesday, February 19th, 2025 President Donald J. Trump announced that he would end the congestion pricing plan. In a letter sent to New York Governor Kathy Hochul, Transportation Secretary Sean Duffy expressed the agency’s rescission of its approval of the toll program.

The Value Pricing Pilot Program (VPPP) is a program managed by the Federal Highway Administration that is designed to help state and local governments underwrite changes to highway tolling programs. The VPPP is an essential element of the NYC Congestion pricing plan. By rescinding the approval for the VPPP, the congestion pricing program is essentially rendered null.

A statement issued by the Department of Transportation included the following information about Secretary Duffy’s rationale:

“As detailed in the letter, the Secretary is terminating the pilot for two reasons.  First, the scope of the CBDTP is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in this major urbanized area. Second, the toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion. By doing so, the pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction – not transit revenue generation.”

The MTA has filed a lawsuit to preserve the congestion pricing plan, per a press release. Governor Hochul has also expressed her dedication to keeping the plan in place, as evidenced by her comments during a joint appearance with the chair of the MTA. “We're in fight mode within seconds of us getting this notification. Our MTA was prepared. We knew this could come and filed a lawsuit within minutes. I'm very confident we will be successful. And I also want to say, the cameras are staying on. We are keeping the cameras on. Lights, cameras, action. They're staying on,” she said.

NJ Governor Phil Murphy has long been a critic of the pricing plan, and issued the following statement following President Trump’s announcement:

“I want to thank President Trump and Secretary Duffy for their efforts to halt the current congestion pricing program in Manhattan’s Central Business District.

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.

Although we have had a difference of opinion with our colleagues in New York on congestion pricing, we have always had a productive relationship with our neighbors across the Hudson. I look forward to continuing that spirit of partnership for the benefit of the entire Tri-State Area.”

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In the meantime, the tolling will remain in effect for drivers. Observers say that the situation presents a unique legal question about the role of the federal government. In a Gothamist article, a lawyer for the Natural Resources Defense Council (NRDC) expressed skepticism about whether the administration’s decision would hold. Attorney Eric Goldstein told Gothamist, “ The courts impose a very high burden when the federal government seeks to reverse course and completely do a 180 turnaround simply because administrations have changed. They've got to prove that their rationale is legally justified, and it's hard to see how they can make that case.”

This post will be updated with any further information.

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