New $25 Fee Coming for All New York State Drivers

The fee would be used to fund public transportation outside of New York City.

Published on Feb. 24, 2026

Got story updates? Submit your updates here. ›

New York State is proposing a $25 annual fee for all drivers outside of New York City, with the funds generated estimated at $125 million to be used for public transportation. The move has drawn criticism from drivers who see it as an unfair tax, especially given New York's already high tax burden.

Why it matters

The proposed fee highlights the ongoing challenges of funding public transportation systems, particularly in areas outside of major urban centers. It also reflects the tensions between drivers and public transit users, as well as the broader debates around transportation policy and equitable access.

The details

Under the proposal, Western New York drivers would pay an annual $25 fee to generate an estimated $125 million in state aid for transit authorities outside of New York City. The money would be used to fund public transportation, though many drivers have criticized the move as an unfair tax, especially given New York's already high tax burden.

  • The proposal was announced in February 2026.

The players

New York State

The state government proposing the $25 driver's fee to fund public transportation outside of New York City.

Western New York Drivers

Drivers outside of New York City who would be subject to the proposed $25 annual fee.

Public Transportation Systems

The transit authorities outside of New York City that would receive the estimated $125 million in state aid generated by the proposed driver's fee.

Got photos? Submit your photos here. ›

What’s next

The proposal would need to be approved by the New York State legislature before the $25 driver's fee could be implemented.

The takeaway

The proposed $25 driver's fee in New York State highlights the ongoing challenges of funding public transportation, particularly in areas outside of major urban centers. It also reflects the broader tensions between drivers and public transit users, as well as the need for more equitable and sustainable transportation policies.