The Trump administration escalated its conflict with New York City on Monday by threatening to withhold federal highway funding unless the Metropolitan Transportation Authority (MTA) halts its Manhattan congestion pricing program by May 21.
In a sharply worded letter addressed to Governor Kathy Hochul, U.S. Transportation Secretary Sean Duffy stated that the Federal Highway Administration would suspend financial assistance and regulatory approvals for several federally backed road projects if the MTA did not comply with the deadline.
The dispute between federal transportation authorities and the MTA began in February when the administration withdrew its support for the congestion pricing plan, prompting the MTA to file a lawsuit.
In court filings, the MTA argued that the congestion tolls, which are anticipated to fund approximately $15 billion in transit improvements, were federally approved under the Value Pricing Program. This program explicitly allows local and state entities to levy tolls on federally subsidized roads to fund other initiatives. The fees are currently set at $9 for daytime entry into Manhattan below 60th Street.
During his 2024 presidential campaign, Donald Trump pledged via social media to “TERMINATE” Manhattan’s congestion pricing tolls immediately upon assuming office, underscoring the administration’s ongoing opposition to the program. Trump’s skyscraper, Trump Tower, and other properties are within the congestion zone.
Secretary Duffy had initially set a March 20 deadline for the MTA to stop charging congestion fees before extending the deadline to April 21 when Gov. Hochul did not lift the tolls.
At the time, Janno Lieber, chairman and CEO of the MTA, said that the deadline would “come and go” with no changes to tolling and claimed that the Trump government lacked the legal power to reverse approvals given under previous President Joe Biden’s administration.
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“Nothing is going to change, and we are very confident that there won’t be a rollback of congestion pricing because the program stepped through every hoop on the way to getting that federal approval. It can’t be unilaterally rescinded.”
While the letter specifically mentioned withholding funds from Manhattan-based projects, Duffy indicated that sanctions could extend statewide if the MTA persists in ignoring federal directives.
Duffy contends that the absence of toll-free options for accessing the cordoned area of Manhattan is incompatible with previous Value Pricing Pilot Program implementations and leaves drivers with no other choice than to pay an expensive toll or utilize a poorly run transit system.
Duffy clarified that critical infrastructure projects deemed “essential for safety” would not be affected, and federal support for mass transit projects was not mentioned in the letter.
“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. 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.”
While Duffy acknowledged that the Value Pricing Program granted those funds to other projects, including transit projects, he argued, “It is unconscionable as a matter of policy that highway users are being forced to bail out the MTA transit system.”
“Your refusal to end cordon pricing and your open disrespect towards the federal government is unacceptable. Know that the billions of dollars the federal government sends to New York are not a blank check. Continued non-compliance will not be taken lightly.”
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Gov. Hochul immediately responded, declaring that the congestion pricing system is lawful and confirming that toll collection would continue unless legally mandated otherwise. A spokesperson for her office said, “The program is working. Traffic is down, business is up, and the cameras are staying on.”
“We’ve seen Secretary Duffy’s tweet, which doesn’t change what Governor Hochul has been saying all along.”
The cameras mentioned refer to the system of traffic cameras used to assess the tolls to drivers in the congestion zone.
Lisa Daglian, Executive Director of the Committee to the MTA, strongly criticized Duffy’s threat, accusing the administration of using financial leverage as an intimidation tactic.
“Wouldn’t it be not just counterintuitive but counterproductive to halt money that’s coming in, or that’s being dedicated to roadways within the congestion relief zone to support those very roads that people are driving on, just to be a bully?”
Daglian noted that federal funds typically support vital upgrades to key thoroughfares such as the FDR Drive and various bridge repairs.
Lieber responded to Duffy’s latest communication in a statement, saying, “The legal issues raised in the letter are already appropriately before a federal judge.”
According to the MTA, the data indicates the congestion pricing tolls effectively reduce Manhattan traffic gridlocks, increase bus speeds, and raise overall public transit ridership.
Court records suggest the lawsuit will take until fall to be fully settled, and a federal judge has so far agreed with New York, ruling that the toll is legitimate.
While similar toll programs have been implemented in cities such as London, Stockholm, Milan, and Singapore, the United States has yet to see such initiatives put into practice.
Moumita Basuroychowdhury is a Contributing Reporter at The National Digest. After earning an economics degree at Cornell University, she moved to NYC to pursue her MFA in creative writing. She enjoys reporting on science, business and culture news. You can reach her at moumita.b@thenationaldigest.com.
