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By: Chase Smith
Transportation Secretary Sean Duffy has directed New York officials to stop collecting congestion tolls in Manhattan, warning that failure to do so would cost the city major federal funding.
In an April 21 letter, Duffy accused the state of defying federal law by continuing to toll federally funded highways after the Trump administration rescinded the program’s approval.
“I write to warn you that the State of New York risks serious consequences if it continues to fail to comply with Federal law, and to direct New York to show cause why the Federal Highway Administration (‘FHWA’) should not impose appropriate measures to ensure compliance,” Duffy wrote in the letter addressed to New York Gov. Kathy Hochul.
The Central Business District Tolling Program, or Congestion Pricing, was authorized under a federal Value Pricing Pilot Program agreement signed in 2024 under the Biden administration. Duffy terminated that agreement on Feb. 19. He said New York was notified that congestion tolling must cease by March 21, a deadline later extended to April 20.
The state has continued to operate the tolls. As of April 20, “New York has not responded to FHWA’s requests for information,” Duffy wrote, noting that state officials “have also publicly declared that New York will continue to collect tolls in open defiance of Federal law.”
Duffy’s letter directs the New York State Department of Transportation to “show cause” by May 21 as to why the FHWA should not impose compliance measures. These would begin as soon as May 28 and would initially include halting federal construction authorizations in Manhattan, with broader restrictions possible.
If the toll continues, Duffy said, FHWA may suspend funding for projects throughout New York City, including blocking obligations of both formula and competitive funds. Safety-related projects would be exempt.
Duffy also criticized the tolling plan itself, saying it imposes a “disproportionate financial hardship on low and medium-income hardworking American drivers” while benefiting high-income commuters and the transit system. He emphasized that there are no toll-free alternatives into the zone, which he said forces drivers either to pay or to use what he described as a “substandard transit system run by the Metropolitan Transit Authority [MTA].”
The program, which began Jan. 5, aims to reduce congestion and generate $500 million annually for transit improvements. The MTA has filed a federal lawsuit challenging the Transportation Department’s termination of the tolling agreement.
In an emailed statement to The Epoch Times, MTA Chair and CEO Janno Lieber said the agency is reviewing its legal options and reiterated its commitment to the tolling program.
“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,” Lieber said. “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.”
As of April 20, the $9 congestion charge on most vehicles entering below 60th Street in the New York City borough of Manhattan remained in effect.
A statement from Hochul’s office to media outlets stated: “I received the letter from USDOT extending their congestion pricing threats once again.”
“I repeat: congestion pricing is legal—and it’s working. Traffic is down, business is up and the cameras are staying on.”