New York City

New York Maintains Congestion Tolling Amid Federal Funding Cut Threats

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Published on May 22, 2025
New York Maintains Congestion Tolling Amid Federal Funding Cut ThreatsSource: Unsplash/ Juan Di Nella

The standoff in New York over congestion pricing persists, with the state defiantly maintaining the tolls despite fresh threats of federal funding cuts. As CBS New York reports, a recent deadline set by the Trump administration for New York Governor Kathy Hochul to end the city's congestion pricing came and went without any change. Trump administration officials had warned that failure to comply might lead to New York losing federal funding and facing possible "compliance actions" beginning as soon as May 28.

In response to the federal threats, the Governor's office asserted their stance that congestion pricing is effective and legal. "Congestion pricing is lawful -- and it's effective. Traffic is down, business is up, and the cameras are staying on," a spokesperson told CBS New York. This comes in the wake of repeated deadlines from U.S. Transportation Secretary Sean Duffy, seeking to push New York to cease charging drivers who enter Midtown and lower Manhattan. The latest deadline, designed to forcefully encourage New York to cease their tolling practices, was largely ignored by the city.

Furthermore, according to the Daily News, the MTA is currently in the midst of a legal battle in Manhattan Federal Court, contending that the federal government's demands to alter state policy are unconstitutional. They also note that despite warnings from Duffy that unless given a satisfactory explanation for the persistence of congestion pricing, punitive measures would begin next week, such an explanation has already been attempted through a 364-page response from MTA's attorneys declaring the tolling as lawful.

Despite the increase in vehicles entering the congestion zone, the MTA stands by its claim that the average number of cars remains 12% less than before the tolling was implemented, as per recent data. This stance is fortified by legal arguments asserting that Duffy does not hold the authority to cease the pricing or to enforce the suggested compliance measures. "It is ... obvious that USDOT's decision has already been made, and that this is an 'opportunity to be heard' in name only," part of the MTA's response reads, as per the Daily News.