NY Robotaxi Plans Stall After Governor Drops Proposal

Waymo and other autonomous vehicle companies face setback as New York fails to legalize unsupervised robotaxis outside NYC.

Published on Feb. 27, 2026

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New York Governor Kathy Hochul has withdrawn a proposal that would have allowed robotaxi companies to operate commercially without human safety drivers in parts of the state outside New York City. The move is a blow to Waymo and other autonomous vehicle makers who were hoping to expand into the lucrative New York market. Current state law only allows self-driving vehicles if a human driver keeps their hands on the steering wheel, limiting the industry's growth in the region.

Why it matters

New York is seen as a key growth market for the robotaxi industry, with its dense urban environment and high demand for transportation services. The failure to pass this legislation is a setback for companies like Waymo that have been investing heavily in autonomous vehicle technology and were counting on expanding into the New York market.

The details

Hochul's proposal would have created a framework for limited robotaxi deployments elsewhere in the state, while leaving any decision about New York City to the mayor and city council. The plan failed to gain legislative support and was withdrawn. This means private companies like Waymo and Tesla will not be able to operate their commercial robotaxis in New York without human safety drivers, at least for now. Waymo has been testing vehicles with safety drivers in New York City under a permit that expires on March 31, and it's unclear if the new mayor will renew that permit.

  • Hochul introduced the robotaxi proposal last month as part of her budget plan.
  • The governor's office confirmed the plan was withdrawn on Thursday after failing to gain legislative support.
  • Waymo's current permit to test vehicles with safety drivers in New York City expires on March 31, 2026.

The players

Kathy Hochul

The Governor of New York who introduced and then withdrew the proposal to allow robotaxi companies to operate commercially without human safety drivers in parts of the state outside New York City.

Waymo

An American autonomous driving company and a subsidiary of Alphabet Inc., Google's parent company, that was hoping to expand its robotaxi services to New York.

Brian A. Cunningham

A New York State Assemblyman who has sponsored a bill that would allow a person or company to operate a fully autonomous vehicle on public roads without a human driver, provided certain conditions are met.

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What’s next

Waymo's current permit to test vehicles with safety drivers in New York City expires on March 31, 2026, and it's unclear if the new mayor will agree to renew the permit. Additionally, the bill sponsored by Assemblyman Cunningham that would allow for fully autonomous vehicles in the state is still being considered, but it's unclear if it will gain enough legislative support to pass.

The takeaway

The failure to pass the robotaxi legislation in New York is a significant setback for the autonomous vehicle industry, which was hoping to expand into one of the world's largest transportation markets. This highlights the ongoing regulatory challenges facing the industry as it works to deploy its technology on public roads.