New York Governor Kathy Hochul has withdrawn a legislative proposal that would have authorized commercial robotaxi services across the state, excluding New York City. The plan was removed from the executive budget following a lack of support from state legislators and key stakeholders.

The withdrawal represents a significant setback for Alphabet-owned Waymo, which is currently pursuing an aggressive national expansion. Securing statewide approval was considered a strategic prerequisite for Waymo’s eventual entry into the New York City ride-hailing market.

Waymo expressed disappointment regarding the decision. The company stated it remains committed to collaborating with the state legislature to advance future autonomous vehicle regulations.