Feds Threaten to Pull NYC Highway Funding Unless State Kills Congestion Pricing

WASHINGTON—In the latest salvo fired in the battle between the Trump administration, New York State and the Metropolitan Transportation Authority over the controversial congestion pricing program in New York City, U.S. Transportation Secretary Sean P. Duffy is now threatening to cut off highway funding to New York City unless the tolling program is shut down by May 21 by the New York State Department of Transportation.

As the federal court case continues over the legality of the federal government pulling its prior approval of congestion pricing, Sec. Duffy in a letter sent to New York Gov. Kathy Hochul on April 21 threatened to halt all FHWA-backed projects and funding in Manhattan, with the exception of safety-related initiatives if the state continues congestion pricing after May 21.

The letter came after the state refused to halt the program by the April 20th deadline previously imposed by Sec Duffy. Congestion pricing went into effect in the designated section of Manhattan on Jan. 5.

“President Trump and I will not sit back while Governor Hochul engages in class warfare and prices working-class Americans out of accessing New York City,” said U.S. Transportation Secretary Duffy. “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. We are giving New York one last chance to turn back or prove their actions are not illegal.”

If NYSDOT fails to comply, Sec. Duffy listed the following actions will be taken by the USDOT:

• No further advance construction (“AC”) authorizations for projects within the borough of Manhattan, except for projects determined by FHWA to be essential for safety.
• No further NEPA approvals for projects within the borough of Manhattan, except for safety projects.
• No further approvals of Statewide Transportation Improvement Program amendments concerning New York Metropolitan Transportation Council TIP modifications.

If non-compliance continues, Sec. Duffy warned that additional measures may include: no further obligations of FHWA funds (both formula and competitive) for projects within New York City, except for safety projects; no further AC authorizations for projects within New York City, except for safety projects; no further NEPA approvals for projects within New York City, except for safety projects and the corrective measures could be expanded to other geographic areas within the State of New York if noncompliance continues.

According to The Gothamist, Gov. Hochul stated that “congestion pricing is legal" in a statement responding to Duffy's letter, and said the MTA would continue to collect the tolls. MTA Chair and CEO Janno Lieber released a statement in response to the Sec. Duffy letter: “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. 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.”