Observed Signal · Feb 19, 2026 · Policy Update · Source: TechCrunch · Impact: 3/5 · Sentiment: Negative
New York Halts Robotaxi Expansion Amid Pushback
New York Governor Kathy Hochul withdrew a proposal that would have amended the state’s one-hand-on-the-wheel law to allow robotaxis to operate outside New York City. The withdrawal, confirmed by Hochul spokesperson Sean Butler, follows stakeholder and legislative pushback. The proposal would have included restrictions such as barring commercial deployments in cities with more than one million residents, requiring approval from the state transportation commissioner, a $1 million fee, and $5 million in financial security, plus local support. With the proposal pulled, the state’s more restrictive AV pilot program remains in place, permitting testing exemptions but not commercial robotaxi services. Waymo, which is testing in New York City with human safety operators and operates commercial services in several U.S. markets, said it remains committed to working with the legislature to advance deployment.
State-level withdrawal of a legal change halting commercial robotaxi expansion is a meaningful regulatory setback for Waymo and the autonomous vehicle industry, preserving restrictive pilot rules and affecting near-term deployment plans.
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Key Takeaways & Evidence Grounding
- New York Governor Kathy Hochul withdrew a proposal to amend state vehicle and traffic laws to legalize robotaxis outside New York City.
- The withdrawn proposal would have prohibited AV commercial deployments in cities with more than one million people, required transportation commissioner approval, a $1 million fee, and $5 million in financial security.
- The existing New York AV pilot program remains, allowing exemptions to the one-hand-on-the-wheel rule for testing but not for launching commercial robotaxi services.
- Waymo is testing robotaxis in New York City (permit allows up to eight Jaguar I-Pace test vehicles with human safety operators and testing authorized through March 31) and operates commercial robotaxi services in multiple U.S. markets.
- Waymo reports providing more than 400,000 paid rides per week and is targeting one million weekly rides by the end of the year.
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NY Governor Rejects Robotaxi Expansion, Hits Waymo Hard
New York Governor Kathy Hochul has withdrawn a proposal to allow limited commercial robotaxi services in parts of New York state outside New York City, citing lack of stakeholder and legislative support. The reversal affects companies like Alphabet-owned Waymo, which plans city expansions but will not be prevented from continuing testing in New York City, where it holds a Department of Transportation testing permit extended through March. The proposal had faced opposition from labor unions, rideshare drivers and some city officials. Waymo said it was disappointed and reiterated plans to expand to several U.S. cities and London; the company currently provides about 400,000 rides per week across U.S. markets. The article also notes recent safety incidents involving Waymo vehicles that prompted an NHTSA investigation.
Federal Push vs Local Pull on Robotaxi Regulation
Federal regulators and local officials are moving in opposite directions on autonomous vehicles. The National Highway Traffic Safety Administration (NHTSA) issued a set of AV policy actions, most notably granting Zoox a temporary exemption from eight federal motor vehicle safety standards that clears a regulatory hurdle for paid robotaxi rides in Las Vegas. At the same time, Waymo and other robotaxi operators face increased scrutiny after incidents that interfered with emergency response and caused local gridlock in San Francisco. Rep. Kevin Mullin proposed legislation directing federal regulators to establish minimum national safety standards for AV operators. The newsletter also summarizes recent mobility deals and industry moves, including a Saudi stake in Lucid, The Boring Company fundraising talks, Terminal’s $20M Series A, drone delivery expansions, and autonomous vehicle testing and launch plans in London.
Tesla Cybercabs in New York Have Steering Wheel, Person
Tesla's Cybercabs have been spotted in New York City with steering wheels and safety drivers, despite the company's plan for fully autonomous, steering-wheel-free robotaxis. The local news outlet Gothamist reported the sightings, and New York's transportation authorities acknowledged Tesla is testing a 'supervised' autonomous driving system. Fully driverless robotaxi services are not permitted in New York, and commercial autonomous taxi operations are currently banned. Tesla has not commented on the matter, and reports suggest the company may be using the New York deployment to collect data. This follows Waymo's own challenges in the city, where its testing permit expired and a limited robotaxi service approval was revoked in early 2026.
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