The Metropolitan Transportation Authority (MTA), the largest public transit authority in North America, is charged with managing public transportation in the New York City metropolitan area. It serves more than 15 million people in 12 New York counties and two counties in Connecticut. On Jan. 5, 2025, New York City implemented a congestion pricing program that will charge vehicles a toll for entering the most congested parts of Manhattan – with the goals of reducing traffic congestion, improving air quality and generating funds for MTA transit improvements. Specifically, officials plan to use some of this toll revenue to obtain $15 billion in bonds to fund myriad much-needed capital improvement projects. President-Elect Donald Trump, who during his first term showed a tendency for halting transit and infrastructure projects that were already in the works (such as the Gateway Tunnel Project), however, has vowed to stop the program once in office.
Despite congestion pricing having already gone into effect, one way President-Elect Trump could jeopardize the tolling system would be by rescinding federal approval of the various federal and state environmental assessments that are needed in order for the program to work. Alternatively, he could require additional ones to take place, which could further create uncertainty surrounding it. Additionally, President-Elect Trump could concede to the federal lawsuits pending that seek to stop the program and provide support to lawsuits that aim to overturn it. From a legislative perspective, House Republican lawmakers are already pressing for a law to block the tolls via a bill that’s gained Democratic support from moderates such as Rep. Josh Gottheimer (D-N.J.), a candidate for New Jersey governor. And an Anti-Congestion Tax Act has already been introduced in Congress in an attempt to prohibit the U.S. Department of Transportation from awarding any capital investment grants to the MTA for projects in New York until drivers from all New Jersey and New York crossings into Manhattan receive exemptions from the toll and the tax code is amended to offer commuters a federal tax credit at the end of the year that equals the amount that they paid in tolls.
For the MTA and New York City area, the consequences of these actions could be challenging. Specific infrastructure projects at risk include:
- updates to elevators, escalators and entrances, particularly in areas that currently lack full accessibility for people with disabilities
- signal system upgrades
- subway system expansion (including the extension of the Second Avenue Subway or new subway routes to underserved areas)
- bus fleet, network and rapid transit lane upgrades
- tunnel repairs (such as the Brooklyn-Battery Tunnel – now the Hugh L. Carey Tunnel), the Queens Midtown Tunnel and other critical crossings
- expansion of the Long Island Rail Road (LIRR) and Metro-North Railroad
Though Gov. Kathy Hochul implemented congestion pricing for the MTA before President Trump takes office on Jan. 20, 2025, it is not clear whether he will deliver on his promise to halt the controversial pricing program, making it a major infrastructure development to watch in 2025.
20 Posts in 20 Days Leading to Inauguration Day on Jan. 20
Holland & Knight’s Transportation & Infrastructure Industry Sector Group is prepared to assist industry clients in adapting to the anticipated changes by the new administration. Our team is writing new blog posts each day leading up to President-Elect Donald J. Trump’s inauguration, with insights regarding likely impacts on the various segments of the industry, including Aviation, Construction, Maritime, Freight Rail, Motor Carriers, Transit and Autonomous Transportation. Bookmark our Election Impacts on Transportation & Infrastructure resource page to follow along.