Waymo autonomous taxis turns onto Post Street in San Francisco, California, US, on Wednesday, Dec. 17, 2025.
New York Gov. Kathy Hochul has pulled a proposal that would have allowed commercial robotaxi services, like Alphabet 's Waymo, to start in some parts of the state, according to her office.
"Based on conversations with stakeholders, including the legislature, it was clear that the support was not there to advance this proposal," Sean Butler, a spokesperson for the governor, said in a statement.
Hochul's reversal represents a blow to robotaxi operators like Waymo, which plans to expand its ride-hailing service to several new cities this year.
A Waymo spokesperson told CNBC in a statement that it was "disappointed" by Hochul's decision.
The decision will not affect Waymo's testing in New York City.
In August, the company received its first permit from the New York Department of Transportation to start testing in the city, an approval made under New York City Mayor Zohran Mamdani's predecessor, Eric Adams.
Waymo began testing a handful of AVs in Manhattan and downtown Brooklyn with human safety drivers on board under a permit that was extended through March.
Hochul introduced the proposal during her State of the State address last month. It outlined plans to allow for limited deployment of commercial robotaxis in the state, notably outside of New York City, a huge potential source of rider demand.
Companies interested in piloting their services would be required to submit applications that "demonstrate local support for AV deployment and adherence to the highest possible safety standards," Hochul said in her address.
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