USDOT Secretary Rescinded FHWA Approval Of MTA Congestion Pricing Program
On Wednesday, the Trump administration moved to end the MTA congestion pricing program. In a letter to New York Governor Kathy Hochul, USDOT Secretary Sean Duffy stated he is terminating FHWA approval of the program and FHWA officials will be in contact with state authorities “to discuss the orderly cessation of toll operations under this terminated pilot project.” Formally, Duffy rescinded the November 2024 Value Pricing Pilot Program (VPPP) agreement among state and federal agencies that authorized initiation of the tolling initiative.
Duffy stated that an evaluation of the program he conducted at Trump’s direction led him to conclude that it “exceeds the authority authorized by Congress under VPPP” for two reasons. First, it deprives motorists of any toll-free access to the Manhattan congestion zone. Secondly, the primary motivation for tolling appears to be revenue generation rather than congestion reduction. Duffy acknowledged that he took into consideration public concerns raised by Trump and legal issues raised by New Jersey’s governor and other litigants challenging FHWA and MTA in court.
In an accompanying news release, the secretary called the program “a slap in the face to working class Americans and small business owners” who are required to pay tolls to use Manhattan infrastructure they have already financed with their taxes. It “leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways. It’s backwards and unfair.”
Swift Legal Action Keeps Congestion Pricing In Effect For Now
MTA Chair and CEO Janno Lieber released a brief statement shortly after USDOT Secretary Sean Duffy withdrew FHWA approval of MTA’s congestion pricing program. He confirmed that the agency had already filed pleadings in federal court to ensure that tolling will continue “notwithstanding this baseless effort to snatch those benefits away from the millions of mass transit users, pedestrians and, especially, the drivers who come to the Manhattan Central Business District.”
In remarks to reporters, New York Governor Kathy Hochul and MTA chief Janno Lieber left no doubt about their commitment to preserving the tolling program. The governor challenged the legality of Mr. Duffy’s decision and pointedly questioned President Trump’s motives for instigating it. The tolling system will remain in full operation while the MTA court challenge plays out, she said. Ms. Hochul characterized the state-federal contest as a fight “for our residents, our commuters, our riders, our drivers, our emergency personnel. Life has gotten better [following the program’s implementation] for those who have asthma. People with illness. That’s who we’re fighting for.”
The New York Times interviewed legal experts who believe the Trump administration may have difficulty sustaining its authority to halt the program. According to the article, MTA’s complaint “includes a half-dozen legal arguments, many of which hinge on whether [USDOT Secretary] Duffy’s effort to reverse course is ‘arbitrary and capricious’ under the law. The filing also implies that aborting a program that has resulted in decreased traffic in Manhattan would require the federal government to first assess whether shutting it down would cause harm to the environment.”
Another MTA basis of attack is that FHWA has relied on the same statutory authority invoked by Duffy “to implement tolling programs in Texas and Florida, without similar objections.” FHWA “has never attempted to unilaterally rescind tolling authority for any V.P.P.P. program or project,” MTA claims. It argues that doing so, would “create uncertainty” any time there is a change of agency or presidential administration, “uncertainty that may make it difficult to issue bonds for other projects and would clearly undermine the purposes of the V.P.P.P.” (In support of the latter argument, the complaint notes, at paragraph 14, that MTA has already incurred debt that is secured by the revenue it expects to collect through congestion zone tolling.) (MTA’s legal action is captioned as Metropolitan Transportation Auth. and Triborough Bridge and Tunnel Auth. v. Duffy, et al., No. 1:25-cv-01413 (S.D.N.Y., Feb. 19, 2025).
Illinois Tollway Contract Award Started Major Interchange Project Planning
Daily Herald reported, the Illinois Tollway Authority has “launched a massive redo” of the Downers Grove interchange that connects the Reagan Memorial Tollway (I-88) with and the Veterans Memorial Tollway (I-355). Last month, the Tollway board approved a $35.3 million master plan design services contract with Hanson Professional Services, Inc., to get the project started. Authority engineers describe the facility as a “bottleneck on the system” needs some infrastructure repair.
Benesch Won Design Contract For Major PA Turnpike Interchange Project
On Wednesday, the Pennsylvania Turnpike Commission (PTC) announced its selection of Alfred Benesch and Company as lead design consultant for the Breezewood Interchange project. The major design and expansion initiative “will reconfigure the Breezewood Interchange (Exit 161) by providing a direct link of the Pennsylvania Turnpike to Interstate 70 and includes a three-mile total reconstruction and widening of the PA Turnpike (I-70/76 and Interstate 76) between mileposts 160-163.” The undertaking became possible through PTC’s ongoing transition to open-road tolling.
Benesch will perform an alternative analysis study and provide preliminary design and final design services, stakeholder engagement included. PTC selected Benesch through a competitive procurement process in which thirteen firms participated. (It declined to identify the unsuccessful proposers.) The commission stated, “Benesch demonstrated a strong understanding of the anticipated project issues and challenges, proposed a sound approach to evaluating potential alternatives and creating effective public involvement plans, displayed significant relevant experience, and will staff the project with highly qualified team members.”
PTC chief executive Mark Compton called the selection of a lead designer a milestone in the progress of the Breezewood initiative.
These are a few of the toll industry developments TRN covered last week. If you’re not a subscriber to Daily News Briefs, click here for a free, 14-day trial. Read the news as it happens every weekday.
Florida Will Start Dynamic Pricing Of I-4 Express Lanes Tomorrow
WKMG and WFTV reported that Florida DOT will start dynamic pricing of the I-4 Express lanes facility in metro Orlando on Monday, February 24. According to a recently revised FDOT web page, a base rate of 50 cents per segment “will be adjusted throughout the day as needed, by travel segment, with the goal of keeping vehicles moving at a minimum of 50 mph.” A “handout” linked to the web page states, “Dynamic tolling is a proven approach to maintaining reliable travel times as usage of I-4 Express increases.” On the basis of travel data, the department expects toll costs won’t rise significantly with the change. Drivers will “most likely to see a small increase on the busiest segments near downtown Orlando during peak hours of 6-9 a.m. and 3-7 p.m. weekdays.”
FDOT opened the express lanes to traffic in 2022. Since then, an inaugural 50-cent-per-segment fixed toll rate has been in effect. From the outset, FDOT stated it would eventually convert to dynamic pricing, but it also refrained from making any commitment about the scheduling of a change.
San Bernardino County (CA) Launched I-15 Express Lanes Construction
The San Bernardino County (California) Transportation Authority (SBCTA) announced that construction is getting underway on the I-15 Corridor Freight and Express Lanes Project. A Skanska-Coffman Specialties joint venture will add one or two tolled managed lanes in each direction to an eight mile-long I-15 corridor. “This stretch,” according to SBCTA, “which includes the SR 60 and I-10 interchanges, and one of the largest logistics centers in the U.S., is considered one of the most congested bottlenecks while serving 50 percent of the interstate truck traffic to and from Southern California.” The project will “create a seamless experience connecting to Riverside County Transportation Commission’s (RCTC’s) I-15 Express Lanes” and “relieve congestion and improve traffic flow for everyone on I-15 while strengthening the link between coastal ports and the critical movement of goods across the country.”
To mark the construction start, SBCTA and the City of Rancho Cucamonga will host a kick-off event next Thursday morning, February 27, at the Rancho Cucamonga Civic Center.
Cape May County, NJ, Bridges Will Go Cashless May 10
OCNJ Daily reported that the Cape May County (New Jersey) Bridge Commission, operator of five seashore toll bridges, announced that its transition to cashless toll collection will take place on May 10. The agency decided last September to convert to all-electronic tolling as an efficiency and cost-saving measure. About 90 percent of its transactions are already processed through E-ZPass. Although the commission will no longer need toll collectors, it plans to retain about a dozen of those employees as part-time drawbridge tenders. A commission official noted that the contractual date for conversion to AET was originally April 1, but Conduent, the New Jersey E-ZPass vendor, recently rescheduled it citing work in progress on other projects.
Indiana House Sent Funding Bill With Tolling Provisions To Senate
Indiana Capital Chronicle reported, on Thursday, the Indiana House passed and sent to the Senate HB 1461, a wide-ranging measure aimed at “heading off anticipated transportation funding shortfalls.” The vote was 71-21 in favor of adoption. Although much of the bill concerns local fundraising and a state matching grant program, it would also update 2017 legislation that opened up opportunities (so far, neglected) to raise revenue through highway and bridge tolling. One provision would authorize INDOT to apply to the federal government for a project tolling waiver with the governor’s approval. If a waiver were granted, state authorizing legislation wouldn’t be required.
“Every interstate highway in Indiana potentially could become a toll road under legislation green-lighted Thursday by the Republican-controlled House,” The Times of Northwest Indiana reported. Perhaps in reaction to the article’s lead, the bill’s sponsor, transportation committee chair Jim Pressel (R-20), “downplayed the significance of the tolling component . . . by pointing out a 2017 state law already allows the governor to seek federal approval to toll interstate highways.” Pressel said the bill’s provisions are merely intended to expand gubernatorial discretion on where a toll project can be implemented. One limitation in current state law is that the first tolled interstate be located at least 75 miles away from an existing tollway or toll bridge.
Indiana’s new governor, Mike Braun (R) hasn’t yet staked out a position on tolling. However, according to the article, he voted to approve the 2017 toll authorization law while a member of the Indiana House.
Florida’s Turnpike Held Public Hearings On Mainline Widening Proposal
In an announcement dated February 13 that wasn’t posted online until February 19, Florida’s Turnpike Enterprise (FTE) gave notice of two public hearings on a proposal to widen the turnpike mainline (SR 91) from SR 70 to SR 60 in St. Lucie, Indian River, Okeechobee and Osceola counties. The hearings, one virtual, one in-person, took place last week.
According to a project website, FTE is conducting a project development and environment study based on its identification of a need to widen the turnpike segment. The proposed expansion “will accommodate future traffic volumes of freight and passenger vehicles linked to the projected growth in population and industry for the year 2045.” Additional information can be found in a virtual public meeting exhibit room linked to the website.
Nova Scotia’s 2025 Budget Spelled End Of Halifax Harbour Bridges Tolling
CBC News reported, Halifax Harbour Bridges (HHB), the government commission that maintains and operates two major Nova Scotia toll bridges, “is preparing for tolls to come off in less than two months.” On Wednesday, the province’s finance minister presented a 2025-2026 budget that, among other things, allocates funding to replace toll revenue. The Progressive Conservative party pledged to make the MacKay and Macdonald bridges toll-free during the November 2024 snap election in which it was returned to office.
An HHB spokesperson said tollbooths will not disappear by April but the bridge’s electronic and cash-only payment lanes will be redesigned to permit traffic to flow freely. As part of the financing transition, HHB will become a government-controlled (Crown) corporation but its current board composed of local officials and provincial appointees will remain in charge. The government will provide a CAD 15 million operating grant for this year and cover the CAD 86 million cost of planned capital improvements. Eventually, the public treasury will also fund a proposed MacKay Bridge replacement project.
A belief that toll elimination will improve mobility and ease traffic congestion is one government rationale for the fun. Some bridge officials and transportation experts have questioned that rationale.
Washington State Bill Would Impose Supplemental Mileage-Based User Fee
The Seattle Times reported on Washington State legislation, HB 1921, that proposes to create a mileage-based road use charge (RUC) program supplemental to the state’s gas tax. The bill would initiate the program in three phases between 2027 and 2035. Participation would initially be voluntary starting with EV and hybrid vehicle owners, but all types of passenger vehicles would eventually have to be enrolled in the program. Commercial trucks and other heavy vehicles would be exempt from participation. Drivers would self-report mileage on an annual basis, paying an initial rate of 2.6 cents per mile. Any state fuel taxes a driver pays would be credited against the RUC fees he or she owes.
The prime sponsor, House Transportation Committee Chair Jake Fey (D-27), said the bill ensures that all drivers make a contribution to highway maintenance, and it will raise the funds needed to close the state’s transportation budget shortfall. He failed to move RUC legislation out of his committee during two previous legislative sessions but thinks the current bill will win support, “pointing to the number of new legislators, as well as lawmaker fatigue over continually dealing with inadequate transportation revenue and delayed projects.”
Washington State began working on an RUC Program in 2012. Information about the progress of RUC development and an analysis of HB 1921 can be found on the state transportation commission website.
Israel Began Procurement Of Tel Aviv Congestion Pricing System
The Jerusalem Post reported, Israel’s Finance Ministry has issued a tender for the planning, construction, operation, and maintenance of a congestion charge system in metro Tel Aviv. A congestion pricing program was approved in 2021 but development and procurement were disrupted until recent resolution of a dispute between the finance and transport ministries. The tender offer reportedly specifies toll gate sites, and construction, maintenance, system operation, and customer service requirements. Responses are due by May 8, and a toll system launch is expected in 2026 or 2027. The concession term is reportedly 22 years.
The article notes that congestion fees are expected to generate NIS 1.3 billion (USD 364.5 million) annually. It also has information about the location of congestion zones, toll rates, and toll exemptions.
Glasgow, Scotland, City Officials Explore Tunnel Tolling And Congestion Pricing
Glasgow Times reported, members of Glasgow’s city council are discussing the possibility of imposing tolls on non-resident motorists who use the Clyde Tunnel. They envision creating an electronic, plate-based collection system. The fees would provide much-needed municipal revenue, including funds for the tunnel’s operation and maintenance. “Despite most journeys through the tunnel starting or ending outside the city, Glasgow City Council is solely responsible for the maintenance of the vital route,” a circumstance successive city administrations have tried to change. Another measure under discussion is congestion pricing. Council members see that as a way to get commuters and visitors to start making some financial contribution to the city’s budget.
Glasgow Times reported that initial social media response to the tolling idea was negative.
Industry People Made News
Alan Williamson, Jr., PE, Construction Engineering Manager-East for the Pennsylvania Turnpike Commission (PTC), was named 2025 Engineer of the Year by Central Pennsylvania Engineers Week Council, an organization that celebrates the work of the engineering profession and encourages young people to consider careers in engineering. Mr. Williamson is the fourth PTC engineer to win the council’s annual Engineer of the Year award.
The Central Florida Expressway Authority (CFX) announced that Christopher “CJ” Maier was unanimously elected chair of the authority board by his colleagues. Maier, an appointee of Governor Ron DeSantis (R), has served on the CFX board since 2021. The board also elected Orlando Mayor Buddy Dyer (D) as vice chair and Seminole County Commissioner Andria Herr as treasurer. Mayor Dyer has been on the board member since its creation in 2014. A new Brevard County representative has joined the board. She is Commissioner Katie Delaney, and she replaces Commissioner Tom Goodson, whose two-year board tenure ended last month.
The Transportation Corridor Agencies boards welcomed some new members during their joint February meeting. William Go, an Irvine city councilmember joined both the San Joaquin Hills Transportation Corridor Agency and Foothill/Eastern Transportation Corridor Agency boards. Yorba Linda Mayor Janice Lim was seated on the Foothill/Eastern board. Erica Pezold, a Laguna Hills city councilmember became a San Joaquin Hills agency director.
Stephen LaForge, an incumbent Oklahoma Transportation Commission member and former Oklahoma Turnpike Authority (OTA) board member died recently at age 73. In a statement of condolence issued by Oklahoma DOT and OTA, Mr. LaForge, a real estate executive, was called “a respected business leader and community advocate” with a “focused understanding of the importance of a robust transportation network [and] with a clear vision for delivering needed improvements swiftly and responsibly.”
Transurban Boss Discussed IH-2025 Results And Expansion Possibilities
On Thursday, Transurban Group released 1H-2025 financial results and its investor presentation for the period. Among other things, the tollway operator recorded average daily traffic increases across its facilities, a statutory net loss after tax of $15 million, and a drop in both proportional EBITDA and proportional operating costs.
The Australian Financial Review reports that the loss was tied to legal costs Transurban incurred in a court dispute with ConnectEast, the Melbourne toll concession holder. CEO Michelle Jablko talked with the newspaper about the group’s current primary focus on Sydney toll rate restructuring negotiations with the New South Wales government, as well as possibilities for business growth. Ms. Jablko said there is corporate interest in opportunities in New Zealand, where the government is pushing infrastructure and tolling projects. While declining to provide specific information, she added that the group continues to explore expansion in North America.
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