ALBANY, N.Y. — New York state’s ambitious plans to expand the testing and potential deployment of robotaxi services beyond New York City have hit a roadblock. Governor Kathy Hochul has withdrawn a proposal that would have paved the way for autonomous vehicles to operate in other parts of the state, a move that represents a significant setback for companies like Waymo.
The reversal, first reported by Bloomberg, came after conversations with state legislators and other stakeholders revealed a lack of support for the initiative. Hochul had initially included the proposal in her budget plan last month, aiming to amend state vehicle and traffic laws to allow for the operation of driverless cars. A spokesperson for the governor, Sean Butler, 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 proposed legislation would have allowed limited deployment of autonomous commercial vehicles, such as those operated by Waymo, to pick up and drop off customers outside of New York City. Waymo, owned by Alphabet, Google’s parent company, already operates in cities like Los Angeles and San Francisco and has been actively lobbying for access to the New York market since at least 2019, according to state and city disclosures. The company currently has a permit to test its vehicles with human safety drivers in Manhattan and downtown Brooklyn, a program that extends through March 31.
Despite the setback, Waymo remains committed to bringing its service to New York. “Whereas we are disappointed by the Governor’s decision, we’re committed to bringing our service to New York and will work with the State Legislature to advance this issue,” Waymo spokesperson Ethan Teicher 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.”
Limited Deployment Plans Faced Restrictions
Even if Governor Hochul’s proposal had been approved, the rollout of robotaxi services wouldn’t have been unrestricted. The plan included several limitations designed to address safety and economic concerns. Autonomous vehicle companies would have been prohibited from operating in cities with populations exceeding one million people. Any company seeking to deploy robotaxis would have been required to obtain approval from the state’s transportation commissioner, pay a $1 million fee, and demonstrate financial security of at least $5 million.
The state also intended to prioritize areas where there was clear local support for the technology. According to Butler, backing for robotaxi pilots would have been contingent on a demonstrated need and acceptance within cities or townships.
Existing Pilot Program Remains in Place
With the proposed legislation withdrawn, New York’s existing autonomous vehicle pilot program will remain the primary avenue for testing and development. This program, but, is more restrictive, requiring companies to seek exemptions to a state law that mandates drivers keep one hand on the wheel at all times. This rule effectively prevents the operation of fully driverless vehicles.
Waymo received its initial permit from the New York Department of Transportation in August 2025 to commence testing in New York City, under the administration of former Mayor Eric Adams. The company is currently testing up to eight Jaguar I-Pace vehicles in Manhattan and downtown Brooklyn, all equipped with human safety operators.
Broader Concerns and Waymo’s Expansion
The decision to pull the proposal comes amid broader concerns about the safety and impact of autonomous vehicles. A Siena Research poll released earlier this month indicated that self-driving cars are deeply unpopular in New York, potentially influencing the governor’s decision. Labor unions representing taxi drivers and transit workers also voiced opposition to the plan, fearing job displacement.
Waymo is currently operating commercial robotaxi services in several other states, including Atlanta, Austin, Miami, Phoenix, Los Angeles, and the San Francisco Bay Area. The company reports providing over 400,000 paid rides each week and aims to reach one million weekly rides by the end of 2026. The New York market represents a significant potential opportunity for growth, but for now, that expansion remains on hold.
What’s Next for Autonomous Vehicles in New York?
The future of robotaxis in New York remains uncertain. Waymo has indicated its intention to continue working with the state legislature to address concerns and potentially revive the proposal. The existing pilot program will continue to allow for testing and development, but a wider rollout of autonomous vehicles will require legislative action and broader public acceptance. The next key date to watch is March 31, when Waymo’s current testing permit in New York City expires, potentially requiring a renewal or modification.
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