New York Governor Kathy Hochul Withdraws Proposal To Allow Driverless Robotaxis, Stalling Waymo Expansion

(LibertyInsiderNews.com) – New York Governor Kathy Hochul just killed a proposal that would have allowed driverless robotaxis to operate in parts of the state, delivering a crushing blow to Waymo’s expansion dreams despite the company’s massive $16 billion funding round and months of aggressive lobbying.

Story Snapshot

Governor Hochul withdrew her budget proposal to legalize commercial robotaxi operations without safety drivers outside New York City, citing insufficient legislative support.
Waymo spent six months lobbying state officials and raised $16 billion for expansion just days before the proposal’s collapse on February 19, 2026.
New York’s restrictive laws continue to mandate human safety drivers with hands on the wheel, blocking the autonomous vehicle industry from one of America’s largest taxi markets.
Waymo’s NYC testing permit expires March 31, 2026, leaving the company’s future in the state uncertain under new Mayor Zohran Mamdani.

Big Government Roadblock Halts Innovation

Governor Kathy Hochul withdrew her January 2026 budget proposal on February 19 that would have amended New York traffic laws to permit autonomous vehicle operations without human drivers in areas outside cities with populations exceeding one million. The framework required a $1 million fee, $5 million in financial security, state transportation commissioner approval, and local government consent. Hochul spokesperson Sean Butler confirmed the withdrawal, stating “support was not there to advance this proposal” after discussions with stakeholders and legislators. This decision preserves New York’s status as one of the nation’s most restrictive states for autonomous vehicle deployment.

Waymo’s Expensive Lobbying Campaign Falls Flat

Waymo, Alphabet’s robotaxi subsidiary, conducted intensive lobbying efforts targeting Governor Hochul, state senators, assembly members, and budget director Blake Washington throughout late 2025 and early 2026. The company announced a $16 billion funding round on February 16, just three days before Hochul’s withdrawal, aiming to expand operations to more than 20 cities. Waymo currently provides 400,000 weekly paid rides across Atlanta, Austin, Miami, Phoenix, Los Angeles, and the San Francisco Bay Area. Despite this commercial success elsewhere, the company’s lobbying records show it dominated efforts to influence New York officials, yet failed to secure the legislative backing needed. This represents a significant waste of resources on a state government unwilling to embrace proven technology.

Regulatory Overreach Protects Unions Over Progress

New York law has historically mandated human safety drivers with hands on steering wheels for autonomous vehicles, a restriction that evolved from even more absurd earlier requirements demanding police escorts. This regulatory framework has successfully blocked every attempt at commercial unsupervised robotaxi services since Cruise abandoned Manhattan testing plans in 2017. Limited pilots by Optimus Ride and Mobileye achieved nothing substantial. The withdrawn proposal would have created measured safeguards including substantial fees and local approval requirements, yet legislators buckled under pressure from taxi unions and special interests. This protectionist approach delays access to technology that Waymo claims delivers enhanced safety, privacy, and comfort compared to traditional taxi services.

Uncertain Future for Autonomous Vehicle Access

Waymo’s current New York City testing permit, approved under former Mayor Eric Adams in August 2025, expires March 31, 2026, allowing only eight Jaguar I-Pace vehicles with safety drivers in Manhattan and downtown Brooklyn. New Mayor Zohran Mamdani has not indicated his position on permit renewal, creating additional uncertainty for the company’s limited testing operations. Assemblymember Brian A. Cunningham’s alternative robotaxi bill, introduced to the Committee of Transportation on January 7, remains stalled without clear prospects for advancement. Waymo expressed disappointment but committed to continued collaboration with the legislature, though New York’s track record suggests this optimism may be misplaced. The state’s regulatory paralysis ensures New Yorkers remain cut off from autonomous transportation options available to residents of states with more sensible governance, prolonging the market lag versus California and Arizona.

This setback reveals how entrenched government bureaucracy and special interest influence can strangle innovation and consumer choice. While Waymo targets one million weekly rides nationally by the end of 2026, New Yorkers face continued dependence on traditional taxi services protected by state legislators unwilling to embrace technological advancement. The withdrawal signals that dense urban markets with powerful taxi unions will continue presenting regulatory hurdles that autonomous vehicle companies cannot overcome through lobbying alone, regardless of their proven safety records and substantial financial backing.