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The Trump administration has set a new deadline of May 21 for New York to end its congestion pricing program in Manhattan, threatening to withhold federal funding if the state does not comply. U.S. Transportation Secretary Sean Duffy sent a letter to New York Governor Kathy Hochul on Monday (April 21), warning of "serious consequences" if the program continues. The federal government may cut billions in funding for highway projects in New York if congestion pricing persists, according to Duffy's letter.
The congestion pricing program, which began in January, charges drivers a $9 toll to enter Manhattan's central business district south of 60th Street. It is designed to reduce traffic, improve air quality, and generate revenue for the Metropolitan Transportation Authority (MTA) to fund public transportation upgrades. However, the Trump administration argues that the toll violates federal law by charging for the use of roads that receive federal subsidies.
Governor Hochul and the MTA have resisted the federal directive, maintaining that the program is legal and effective. "Congestion pricing is legal — and it’s working," Hochul said in response to Duffy's letter, as reported by the New York Post. The MTA has filed a lawsuit against the federal government, arguing that the tolls were approved under the federal Value Pricing Pilot Program.
The legal battle is ongoing, with U.S. District Judge Lewis Liman overseeing the case. Environmental lawyer Michael Gerrard told Courthouse News that the May 21 deadline is unlikely to carry more weight than previous deadlines, and the court case will likely determine the program's future.
As the dispute continues, the MTA insists that congestion pricing has been successful in reducing traffic congestion and increasing mass transit ridership. The program's revenue is intended to support $15 billion in transit improvements, as reported by Gothamist.