The Trump administration is threatening to withhold federal funding and block approvals for upcoming transportation projects in Manhattan unless New York City halts its congestion pricing program by May 21.
The warning was issued Monday in a letter from U.S. Transportation Secretary Sean Duffy to Governor Kathy Hochul. The Department of Transportation stated it would suspend approvals for advance construction and environmental reviews under the National Environmental Policy Act for projects in Manhattan, except for safety-related work, if the tolling system remains in place past the deadline.
Federal officials argue that the program is an illegal attempt to fill budget gaps in New York’s transit system and insist that the city must either cancel the tolls or provide legal justification for continuing the program.
Governor Hochul, however, has shown no indication of backing down. She maintains that the congestion pricing plan is both lawful and effective, pointing to reduced traffic and increased economic activity in the city’s core.
The MTA began the first congestion pricing system in the U.S. on January 5. Under the policy, passenger vehicles with an E-ZPass pay $9 during peak hours to enter Manhattan’s central business district, which spans from 60th Street to the southern tip of the island. The program seeks to reduce traffic congestion, enhance air quality, and generate $15 billion to expand transit infrastructure. This includes extending the Second Avenue subway and upgrading the signal systems, which date back to the 1930s.
Since its launch, the program has significantly altered traffic patterns. MTA data shows that 5.8 million fewer vehicles entered the tolled zone between January and March. After operating costs, the agency collected $100 million in toll revenue during the first two months and is on pace to generate $500 million by the end of the year.
The MTA has refused to suspend the program without a court ruling. In February, it filed a lawsuit against the Trump administration challenging the federal withdrawal of program approval. Last week, the agency amended its complaint, seeking to block the federal government from delaying, rescinding, or withholding any funds. MTA leadership emphasized that legal proceedings are underway and that the congestion pricing system will remain active while the case progresses.
