Transport Secretary Sean Duffy warns that approvals and funding for construction projects in New York City may be reduced if the state’s congestion pricing initiative persists beyond the Trump administration’s deadline, which concludes on Sunday.
Duffy issued a letter to New York Governor Kathy Hochul, indicating on Monday that there would be “severe consequences” if the initiative continues following the Trump administration’s withdrawal of federal approvals in February. He has instructed the New York State Department of Transportation to clarify by May 21 why the Federal Highways Agency (FHWA) would not enforce compliance.
“President Trump and I have not remained idle while Governor Hochul has waged a war on working-class Americans by imposing costs for accessing New York City,” Duffy stated. “The federal government is prepared to allocate billions to New York, but will not proceed with funding if Governor Hochul continues to make illegal compromises to address New York’s failing transport budget.”
The initiative, which received initial approval from the Biden administration in November, imposes a $9 toll on vehicles entering Manhattan to mitigate road and air pollution congestion. Hochul initially considered a $15 toll before settling on the lower amount.
Hochul and other officials from New York contend that the plan will be effective in decreasing highway traffic, improving travel times, and providing alternative means of transportation for more individuals. In contrast, the Trump administration has criticized the program for imposing higher expenses on working-class families and small business owners.
Trump labeled New York as “saved” after he announced his decision to terminate the program. In his letter on Monday, Duffy highlighted that unless exceptions are made, all highways constructed with federal aid must remain toll-free.
Duffy stated that if the FHWA concludes that the state remains non-compliant, it will begin enforcing actions against the state and city starting May 28. This enforcement will remain in place until New York agrees to abolish its congestion pricing.
Potential actions could include denying further pre-construction or environmental approvals for projects in Manhattan, apart from those considered vital for public safety. Should compliance issues persist, these actions could be expanded to encompass all FHWA funding for city projects.
If non-compliance continues, the measures might also be applicable to other regions of New York, as stated in the letter.
New York officials seem undeterred, as the city’s Metropolis Transportation Agency (MTA) has initiated a lawsuit to uphold the program. The proposed scheduling for the case may allow the program to continue through the summer.
“If there are concerns, the MTA, state, and city have been reaffirmed in court, confirming that congestion pricing remains valid and that Secretary Duffy’s attempts to halt it hold no merit,” a spokesperson stated.
A representative for the governor informed Hill that they believe the program is effective.
“Traffic is down, businesses are thriving, and the cameras are being operational,” they noted.
