Trump threatens federal funds for NYC transportation projects over congestion pricing
Photo by Zoshua Colah on Unsplash
President Donald Trump’s administration ramped up its threats to New York and set a new deadline to end congestion pricing over the weekend. In a letter to Gov. Kathy Hochul, U.S. Transportation Secretary Sean Duffy said the state needs to end New York City’s congestion pricing program or risk losing federal funding for transportation projects. Duffy’s letter came one day after his previous April 20 deadline to stop the program; Hochul and the Metropolitan Transportation Authority have said the tolls will continue until a judge rules otherwise.
“President Trump and I will not sit back while Governor Hochul engages in class warfare and prices working-class Americans out of accessing New York City,” Duffy said in a statement.
“The federal government sends billions to New York—but we won’t foot the bill if Governor 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.”
The tolling program has charged drivers $9 to enter Manhattan below 60th Street since January 5. In addition to reducing congestion and pollution, the tolls are projected to bring in $1 billion in annual revenue for the MTA.
Duffy argues the program runs contrary to the federal highway aid program, which prohibits tolling on roads built with federal funds unless there’s an exception granted by Congress via the Value Pricing Pilot Program (VPPP), as 6sqft previously reported.
According to Duffy, because it provides no toll-free option for drivers and the toll is “primarily set to raise revenue for transit, rather than at an amount needed to reduce congestion,” the program exceeds the authority authorized by Congress under the program.
In a letter, Duffy outlined the actions the Federal Highway Administration (FHWA) could take if Hochul “continues the state’s illegal toll on working families.”
These include pausing funding and approval for highway projects in Manhattan, except for projects determined by FHWA to be essential for safety. Duffy said if the state’s noncompliance continues, additional measures could apply to more projects in New York City and the state.
The secretary wrote that the governor had until May 21 to shut down the program or explain why the FHWA should not take the outlined measures, with penalties for noncompliance starting May 28.
In February, the Trump administration ordered Hochul to end the program by March 21. The MTA immediately filed a lawsuit to keep the program running, and U.S. DOT extended the deadline to April 20. On Thursday, Mayor Eric Adams’ administration joined the lawsuit.
Court filings earlier this month revealed that the MTA and Trump administration officials have agreed to a briefing schedule that extends into the fall. As 6sqft reported, Manhattan federal Judge Lewis Liman won’t issue a ruling until all necessary documents are submitted, allowing the program to continue for at least several months.
“Another day, another threatening letter from the Department of Transportation regarding our congestion pricing program,” Hochul said in a post on X.
“Well, let me repeat this for those who didn’t hear me the first 10 or 11 times. Congestion pricing is legal. It’s working. Business is up, traffic is down. The cameras are staying on.”
Data released by the MTA shows that congestion pricing is actually reducing congestion. According to the MTA, 82,000 fewer vehicles entered Manhattan below 60th Street each day in March, as Gothamist reported, or 2.5 million fewer vehicles during the entire month compared to the same period in previous years.
The program is also on track to meet its $500 million target by the end of the year.
The MTA said the agency is “evaluating MTA’s legal options.”
“We have received Secretary 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,” MTA Chair and CEO Janno Lieber said in a statement.
“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.”
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No one in DC seems to remember that NYC is international terrorist target number one (and high on the list of domestic terrorist targets as well). Congestion pricing enhances Manhattan security. That includes Trump Tower. We’re keeping it. The Feds can pass right off.
The vast majority of commuters to NYC take mass transit. The small minority of people who are commuting into NYC by car are most likely going to their well-paying jobs. If the job is no longer yielding a worthwhile salary when they factor in the Congestion Pricing tolls, they are free to find another job.
As a small business owner, my vans enter the zones daily. This will cost us $15,000 annually.
The MTA estimates that $900M is lost annually on these lawless entitled fare-dodgers, but instead of plugging that deluge, they create another revenue stream. Yeah this is fair.