New York Governor Kathy Hochul has opted to withdraw a proposal that would have given autonomous vehicle operators the ability to obtain permits for commercial driverless services outside New York City. The measure had been part of the governor’s budget submission last month but was pulled after officials determined it lacked sufficient support.
The proposal, as drafted, would have permitted companies testing autonomous vehicles to apply for authorization to operate without human safety drivers aboard. The governor’s office confirmed the decision to remove the language from the budget on Thursday, citing conversations with stakeholders and the legislature that indicated inadequate backing for the proposal.
Sean Butler, a spokesperson for Governor Hochul, told Bloomberg: "Based on conversations with stakeholders, including in the legislature, it was clear that the support was not there to advance this proposal." That explanation was provided as the administration moved to shelve the regulatory change from this budget cycle.
Alphabet-owned Waymo reacted to the development with disappointment. In a statement supplied to Bloomberg, the company said: "We’re committed to bringing our service to New York and will work with the state legislature to advance this issue." The company has framed New York as an important potential market for driverless rides.
With the proposal withdrawn, Waymo’s plans face a more complicated path to expansion in New York state. The company has set an ambition to surpass 1 million paid weekly robotaxi rides in the United States by the end of 2026. It also announced intentions to expand into 20 cities this year across the United States and internationally, naming Dallas, San Antonio, Orlando, Nashville and London among its targets.
Hochul’s initial proposal explicitly excluded New York City itself, focusing on permitting operations in the rest of the state. Approval to operate statewide outside the city would have advanced Waymo toward entry into what the company regards as one of the world’s largest ride-hailing markets.
The market reaction to the announcement was modest. Alphabet Inc shares declined 0.2% on the news, while Tesla Inc shares slipped 0.6%.
Context limitations: The administration cited stakeholder and legislative feedback for withdrawing the proposal. Statements from the governor’s office and Waymo were reported to Bloomberg and are reflected here.