Last spring, New York City was set to roll out a controversial policy called congestion pricing. This is a plan that charges drivers a fee to enter Manhattan’s busiest areas. The goal was to reduce traffic, cut pollution, encourage public transportation and to raise money for the MTA (NYC public transportation). But the plan hit a major speed bump when Governor Kathy Hochul delayed it, fearing it would cost her political party votes in the November 2024 election.

After months of delays, congestion pricing finally went into effect in January of 2025. The results were immediate—fewer cars on the road, and smoother traffic in the city. Despite early concerns, businesses didn’t suffer. In fact, ticket sales for Broadway shows and restaurant reservations actually went up, proving initially that people were still coming to Manhattan, just using different ways to get there.

New elected President Trump stepped in this month and reversed the policy, calling it unfair to drivers. His argument was that not everyone could afford the extra cost, and it placed an unfair burden on commuters. In general, residents of the outer boroughs, Long Island, Upstate NY, and NJ were that commuted to the city by driving were against the plan. Commuters and residents of Manhattan liked the plan.  

Now, Governor Hochul is taking the federal government to court, arguing that they don’t have the authority to block New York’s decision on congestion pricing. The legal battle could take months, if not years, to resolve. It might even go all the way to the Supreme Court who may have to decide on NY State’s sovereign right to implement congestion pricing.