New York Governor Kathy Hochul has withdrawn a proposal that would have paved the way for the deployment of robotaxis outside of New York City, dealing a setback to Alphabet’s Waymo and its ambitions to expand its autonomous vehicle services in the state. The proposal, initially part of Hochul’s budget plan, sought to amend state vehicle and traffic laws that currently require drivers to maintain at least one hand on the steering wheel.
“Based on conversations with stakeholders, including in the legislature, it was clear that the support was not there to advance this proposal,” Sean Butler, a spokesperson for Governor Hochul, said in a statement. The decision was first reported by Bloomberg News.
Waymo, which has been lobbying for access to the New York market since at least 2019, expressed disappointment with the governor’s decision but reaffirmed its commitment to bringing its service to the state. “We’re committed to bringing our service to New York and will work with the State Legislature to advance this issue,” the company said in a statement. “The path forward requires a collaborative approach that prioritizes transparency and public safety. We will continue to engage constructively with the Governor, the Legislature, and officials around the state to deliver this proven mobility option that New Yorkers are waiting for.”
The withdrawn proposal would have allowed autonomous vehicle companies, such as Waymo, to apply for permission to pilot their services without human operators in the vehicle. Although, it included several limitations. Deployment would have been prohibited in cities with populations exceeding one million, and companies would have been required to obtain approval from the state’s transportation commissioner, pay a $1 million fee, and demonstrate at least $5 million in financial security. Local support would also have been a prerequisite for any pilot programs.
With the proposal removed from consideration, New York’s existing autonomous vehicle pilot program remains in effect. This program allows companies to seek exemptions to the one-hand-on-the-wheel rule for testing purposes, but does not authorize the launch of commercial robotaxi services.
Waymo is currently operating under a permit granted by New York City regulators last August, allowing it to test up to eight Jaguar I-Pace vehicles in Manhattan and downtown Brooklyn, with a human safety operator present in each vehicle. This permit is valid through March 31.
The setback in New York comes as Waymo is actively expanding its robotaxi services in other markets, including Atlanta, Austin, Miami, Phoenix, Los Angeles, and the San Francisco Bay Area. The company currently provides over 400,000 paid rides each week and aims to reach one million weekly rides by the end of 2026. Waymo has announced plans to expand to 20 cities this year, including Dallas, San Antonio, Orlando, Nashville, and London.
A Siena Research poll released earlier this month indicated that self-driving cars are deeply unpopular in New York, contributing to the lack of legislative support for Hochul’s proposal.
