New York hits the brakes on robotaxi expansion plan

New York Governor Kathy Hochul has withdrawn a proposal that would have amended state vehicle and traffic laws to legalize robotaxi services outside New York City, dealing a setback to Waymo and other autonomous vehicle (AV) companies seeking to expand in the state. The proposed changes aimed to override a current law requiring drivers to keep one hand on the wheel, which effectively prohibits fully driverless robotaxis. The withdrawn proposal included strict limitations such as banning for-hire AV services in cities with populations over one million, requiring state transportation commissioner approval, a $1 million fee, and proof of $5 million financial security. Deployment would have been restricted to areas demonstrating local support. With the proposal pulled due to insufficient legislative backing, New York’s existing, more restrictive AV pilot program remains in place. This program allows companies to seek exemptions to the one-hand-on-the-wheel rule for testing autonomous vehicles but does not permit commercial robotaxi operations. Waymo currently tests robotaxis in New York City under a permit allowing up