NY Governor Pulls Proposal for Robotaxis Outside NYC

Hochul withdraws plan to expand autonomous vehicle services beyond New York City

Published on Feb. 25, 2026

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New York Governor Kathy Hochul has withdrawn her proposal to allow commercial robotaxi services in smaller cities outside of New York City, according to a Reuters report. A spokesperson cited a lack of stakeholder support for the plan, which would have expanded autonomous vehicle operations beyond the state's largest city.

Why it matters

The decision to pull the robotaxi expansion proposal highlights the challenges in deploying self-driving vehicles in less dense urban areas, where the business case may be more difficult. It also suggests continued caution around the rollout of autonomous technology outside of major metro regions.

The details

Hochul's original proposal would have allowed companies like Alphabet's Waymo, which recently received its first permit to test autonomous vehicles in New York City, to expand their services to smaller cities across the state. However, the spokesperson said stakeholder support for the plan was not sufficient, leading the governor to withdraw it.

  • In 2025, Waymo received its first permit to test autonomous vehicles in New York City.

The players

Kathy Hochul

The current Governor of New York.

Waymo

An autonomous driving company and subsidiary of Alphabet Inc., Google's parent company.

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What they’re saying

“Stakeholder support for the proposal wasn't there.”

— Spokesperson (Reuters)

The takeaway

This decision highlights the challenges in deploying autonomous vehicle services beyond major metropolitan areas, where the business case and public acceptance may be more difficult to establish. It suggests a more cautious approach to expanding self-driving technology in less dense regions.