Trump Administration and Manhattan Toll Program: A Deal in the Making?

Trump Administration and Manhattan Toll Program: A Deal in the Making?

NEW YORK — President Donald Trump is exploring a potential deal with Gov. Kathy Hochul regarding the controversial Manhattan toll program, while House Republicans push for federal approval rescission.

Reports suggest that one option on the table involves scaling back the contentious toll initiative and allocating substantial investments towards enhancing New York City's infrastructure. A source familiar with the discussions disclosed this information to POLITICO.

Trump's Transit Concerns

Trump's perspective extends beyond tolls to encompass various transit issues within the city, such as bike lanes, e-bikes, and parking, viewing them as integral parts of both the problem and its solution.

Notably, the President is providing Governor Hochul with an opportunity to reconsider her stance on the tolls, signaling a willingness to negotiate. The anonymous source emphasized that this could be a beneficial move for the Governor.

Dialogues Between Trump and Hochul

Recent weeks have seen multiple discussions between the Democratic Governor and the Republican President concerning the toll program. The primary objective of the tolls is to generate $1 billion for bonding purposes, aiming to secure $15 billion for overhauling the region's deteriorating mass transit infrastructure.

In a conversation with The New York Post, Trump criticized the $9 tolls, referring to them as detrimental to the city. However, he expressed a desire to engage further in discussions with Governor Hochul before making a final decision.

Federal Approval Reversal Implications

The Trump administration holds the power to revoke federal approval for the toll program through the Department of Transportation. Such a move would effectively halt the toll initiative and likely trigger a legal dispute initiated by New York authorities.

Despite attempts to reach out for comments, the White House remained silent on the matter.

Hochul's Response

Responding to speculations about Trump's willingness to negotiate on toll-related issues, Governor Hochul's office neither confirmed nor denied the possibility. The office spokesperson highlighted the benefits of congestion pricing in New York City and emphasized ongoing discussions with federal officials.

The toll program, implemented on Jan. 5, has already shown promising signs of reduced traffic congestion and increased mass transit ridership, aligning with the intended objectives of congestion pricing.

However, Governor Hochul is cognizant of the political complexities surrounding the toll initiative. After briefly pausing the program last June due to concerns regarding its impact on swing seat Democrats in crucial House races, she later reinstated the program, reducing the toll from $15 to $9 right after the elections.

Future Scenarios

Given President Trump's unpredictable nature and his ties to New York, the possibility remains that he might opt to terminate the toll program without a negotiated settlement with Governor Hochul.

MTA Chair and CEO Janno Lieber has underscored the economic benefits of mass transit improvements to appeal to the pro-business stance of the President. The implications of withdrawing federal approval could have national repercussions, especially for office buildings like those owned by Trump in Manhattan.

Lieber's optimistic outlook on Hochul's advocacy for congestion pricing indicates a strong case being presented for its merits and benefits.

For more stories like this, stay tuned to New York Playbook.

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