New York withdraws proposal to legalize robotaxis

New York Governor Kathy Hochul has withdrawn a legislative proposal that would have amended vehicle and traffic laws to effectively legalize robotaxis in the state outside of New York City. Sean Butler, a spokesperson for Governor Hochul, confirmed the decision, stating, “Based on conversations with stakeholders, including in the legislature, it was clear that the support was not there to advance this proposal.” The move halts a major effort to expand autonomous vehicle (AV) operations across the state, leaving New York’s existing, more restrictive AV pilot program in place.

The withdrawn proposal aimed to alter a New York State law that mandates drivers keep one hand on the wheel at all times. This rule currently prevents driverless commercial operations because no human is required to be behind the wheel of a robotaxi. However, the proposed framework contained strict limitations. Under the plan, AV companies would have been barred from deploying for-hire robotaxi services in any city with more than a million people. Additionally, operators would have faced a $1 million fee and been required to show proof of financial security of at least $5 million.

The regulatory setback directly impacts operators like Waymo, which has been working to establish a footprint in the state. Currently, Waymo is permitted to test up to eight Jaguar I-Pace vehicles in Manhattan and Brooklyn, provided there is a human safety operator behind the wheel. This testing permit is active through March 31.

Waymo, which already operates commercial robotaxi services in Atlanta, Austin, Miami, Phoenix, Los Angeles, and the San Francisco Bay Area, expressed disappointment with the decision. The company stated that it hears from thousands of New Yorkers who have experienced its service in other cities and want access to it at home. While disappointed by the Governor’s decision, Waymo stated it is committed to bringing its service to New York and will work with the State Legislature to advance the issue. The company warmth-fully emphasized that the path forward requires a collaborative approach prioritizing transparency and public safety, and it plans to continue engaging constructively with state officials. Waymo currently provides more than 400,000 paid rides every week and is targeting 1 million weekly rides by the end of the year.

Why it matters

The withdrawal of Governor Hochul’s proposal prevents the legalization of robotaxis in New York state outside of New York City, maintaining the state’s existing, more restrictive AV pilot program.