The Trump administration on Monday issued another warning to New York about congestion pricing, giving the state until May 21 to either put a stop to the tolling initiative or prove it doesn't violate federal law.
In a letter to Gov. Kathy Hochul, Transportation Secretary Sean Duffy said New York risks losing federal funding and approvals for certain projects from the Federal Highway Administration if it doesn't do one or the other.
“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,” Duffy said in a statement on X. “We are giving New York one last chance to turn back or prove their actions are not illegal.”
In a statement, Hochul said she "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," she added.
In his own statement, MTA Chair and CEO Janno Lieber said the agency was evaluating its legal options, “given that the legal issues raised in the letter are already appropriately before a federal judge.”
“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,” Lieber said.
The congestion pricing fee, which began Jan. 5, is meant to reduce traffic jams and raise billions of dollars in revenue for New York’s subways, commuter trains and public buses.
But President Donald Trump, a native New Yorker whose namesake Trump Tower and other properties are within the congestion zone, had vowed to kill the plan as soon as he took office.
After first rescinding federal approval earlier this year, Duffy called the program “a slap in the face to working class Americans and small business owners," and initially gave New York until March 21 to stop charging the toll.
The MTA challenged Duffy’s decision in federal court and Duffy subsequently pushed the deadline back by a month, to April 20.
The toll varies depending on type of vehicle and time of day and comes on top of tolls drivers already pay to cross bridges and tunnels into Manhattan.
Drivers of most passenger cars pay $9 to enter Manhattan south of Central Park on weekdays between 5 a.m. and 9 p.m. and on weekends between 9 a.m. and 9 p.m. During off hours, the toll will be $2.25 for most vehicles.
Other big cities around the world, including London and Stockholm, have long had similar fees to reduce traffic congestion.