07:15 AM EST, 02/20/2026 (MT Newswires) -- Alphabet's (GOOG, GOOGL) Waymo suffered a setback after New York Governor Kathy Hochul rescinded a proposal that would have allowed for robotaxi services outside New York City, Bloomberg reported Thursday.

The proposal, which would have allowed autonomous vehicle companies to apply for testing permits, was originally included in a budget proposal last month, the report said.

Bloomberg cited a Hochul spokesperson as saying, "It was clear that the support was not there to advance this proposal."

Waymo said in a statement to Bloomberg that it was "disappointed" by the governor's decision. "We're committed to bringing our service to New York and will work with the state legislature to advance this issue."

Waymo and the governor's office did not immediately reply to MT Newswires' request for comment.

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