New York Governor Kathy Hochul has proposed legislation that would legalize commercial robotaxi services across the state, marking a significant shift in one of America’s strictest autonomous vehicle jurisdictions. The announcement came during Hochul’s State of the State address, though New York City notably remains excluded from the proposal.
Expanding Beyond Testing
The proposed legislation would advance New York’s existing autonomous vehicle pilot program to allow for limited deployment of commercial for-hire autonomous passenger vehicles outside New York City. Currently, state law mandates that drivers keep one hand on the wheel at all times, effectively preventing fully driverless operations. This new framework would create an exemption for approved operators.
Companies interested in operating robotaxi services commercially will need to submit applications demonstrating local support for autonomous vehicle deployment and adherence to the highest possible safety standards. The specific implementation details remain unclear, though multiple state agencies—including the Department of Motor Vehicles, Department of Transportation, and New York State Police—will be involved in oversight.
Governor Hochul’s office indicated that more comprehensive details would be revealed in the executive budget proposal scheduled for release on January 20.
A Different Story for New York City
Despite being home to one of the country’s largest transportation markets, New York City faces different treatment under the proposal. The city has its own autonomous vehicle testing permit structure, and Waymo currently operates eight Jaguar I-Pace vehicles in Manhattan and Downtown Brooklyn with human safety operators behind the wheel. Waymo’s existing permit extends until March 31, though the company cannot yet carry passengers or operate a commercial service without separate licensing from the city’s Taxi and Limousine Commission.
Industry Response
The proposal has garnered support from Alphabet’s Waymo, which has been testing in the state and has invested significant resources in regulatory engagement. “Governor Hochul’s proposal to legalize fully autonomous vehicles is a transformative moment for New York’s transportation system,” said Justin Kintz, Waymo’s head of global public policy, emphasizing the potential for safer, more accessible transportation alongside the state’s existing traffic management strategies.
Waymo has already achieved commercial operations in select cities across California, Texas, and Georgia, often through partnerships with Uber, and has announced expansion plans for Las Vegas, San Diego, and Detroit in 2026.
Breaking Years of Regulatory Barriers
New York has maintained some of the strictest autonomous vehicle regulations in the United States, contrasting sharply with states like California, Texas, and Arizona, where Waymo, Amazon’s Zoox, and Tesla have rapidly expanded robotaxi services. Previous legislation introduced to create a framework for driverless operation has stalled in the state Senate’s transportation committee, making the governor’s proposal potentially transformative for the sector’s development in one of America’s largest economic centers.