Congestion Tolls Draws Federal Threats To Cut Highway Funding for NY City, State
WASHINGTON—In the ongoing battle between the Trump administration, New York State and the Metropolitan Transportation Authority over congestion pricing program in Manhattan, U.S. Transportation Secretary Sean P. Duffy is now threatening to cut off highway funding to New York City unless the tolling program is shut down by May 21 by the New York State Department of Transportation.
As the federal court case continues over the legality of the federal government pulling its prior approval of congestion pricing, Sec. Duffy in a letter sent to New York Gov. Kathy Hochul on April 21 threatened to halt all FHWA-backed projects and funding in Manhattan, with the exception of safety-related initiatives if the state continues congestion pricing after May 21. The letter came after the state refused to halt the program by the April 20 deadline previously imposed by Sec Duffy. Congestion pricing went into effect in the designated section of Manhattan on Jan. 5.
“President Trump and I will not sit back while Gov. Hochul engages in class warfare and prices working-class Americans out of accessing New York City,” said U.S. Transportation Secretary Duffy. “The federal government sends billions to New York—but we won’t foot the bill if Gov. Hochul continues to implement an illegal toll to backfill the budget of New York’s failing transit system. We are giving New York one last chance to turn back or prove their actions are not illegal.”
If NYSDOT fails to comply, Sec. Duffy ticked off several actions the feds would take, including no further advance construction (“AC”) authorizations for projects within the borough of Manhattan, except for projects determined by FHWA to be essential for safety. Other threats include no further NEPA approvals for projects within the borough of Manhattan, except for safety projects, and no further approvals of Statewide Transportation Improvement Program amendments concerning New York Metropolitan Transportation Council TIP modifications.
In a statement in response to Sec. Duffy’s letter, Gov. Hochul stated that “congestion pricing is legal” and said the MTA would continue to collect the tolls. MTA Chair and CEO Janno Lieber released a statement in response to the Sec. Duffy letter: “We have received Sec. Duffy’s letter setting yet another new deadline and are evaluating MTA’s legal options, given that the legal issues raised in the letter are already appropriately before a federal judge. In the meantime, cameras are staying on, and New Yorkers continue to benefit from the first-in-the-nation congestion pricing program–with less traffic, cleaner air, safer streets and a stronger regional economy.”
Published: April 23, 2025