The Trump administration said on Wednesday it is rescinding approval of New York City's congestion pricing program designed to reduce traffic and raise billions to upgrade New York's aging subway and bus systems.

The Trump administration on Wednesday nixed federal approval of New York's "congestion pricing" automobile tolls, which had been instituted just last month to raise funds for the region's aging mass transit system.

The transportation secretary said he would revoke federal approval for the program, citing the cost to motorists; the M.T.A. quickly filed a lawsuit to stop the move.

In a letter to New York Gov. Kathy Hochul, the DOT said it rescinded a Nov. 21, 2024 agreement signed under the Value Pricing Pilot Program, or VPPP, that effectively ends tolling authority for New York City's cordon pricing plan, which imposes tolls on drivers entering Manhattan below 60th Street.

The Trump administration moved to revoke federal approval for congestion pricing on Wednesday, making good on a campaign promise to kill the tolls that since Jan. 5 have charged drivers a $9 daytime fee to enter Manhattan south of 60th Street.

A new congestion pricing program implemented by the Metropolitan Transportation Authority last month drove up the cost for commuters who drive from Northeast Pennsylvania into New York City on a