Trump admin warns NY risks billions in federal funding over refusal to end congestion pricing: ‘Serious consequences’
The Trump administration on Monday gave Gov. Kathy Hochul a new, extended deadline to stop collecting congestion pricing tolls — and warned of “serious consequences” if she continues her defiance.
The letter sent by Department of Transportation Sean Duffy threatens to yank what could be billions in federal funding and future approval for roadway construction projects in Manhattan if congestion pricing continues.
“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 wrote. “We are giving New York one last chance to turn back or prove their actions are not illegal.”
Duffy gave Hochul until May 21 to explain why the DOT shouldn’t make good on its threatened penalties, which would begin May 28.
He ominously warned that an unspecified number of road projects funded by the Federal Highway Administration across the Empire State could see their money dry up.
“The corrective measures noted above may be expanded to other geographic areas within the State of New York, if any noncompliance continues,” the letter states.
The exact amount of FHWA funding at risk was unclear and the DOT didn’t immediately provide clarification.
New York state officials expect to directly receive roughly $2.4 billion in transportation funding from the federal government over the next fiscal year – in addition to another $150 million in block grants that flow through the highway administration, records show.
The Metropolitan Transportation Authority also anticipates a separate $14 billion from the feds as part of its massive upcoming capital plan proposal.
Duffy’s letter came a day after Hochul and MTA officials defiantly breezed past his April 20 deadline to stop collecting the $9 tolls.
Hochul reiterated her vow to keep the toll cameras running, in a response throwing shade over Duffy delaying the deadline he had already rolled back.
“I received the letter from USDOT extending their congestion pricing threats once again,” she said. “I repeat: congestion pricing is legal — and it’s working.”
The White House previously demanded that the MTA end the first-in-the-nation congestion pricing program March 21, prompting the transportation agency to file suit to stop the feds.
The Monday missive also followed President Trump and Duffy effectively booting the MTA from a massive planned revamp of Penn Station.
Hochul had been involved in face-to-face talks with Trump over Penn Station, while she engaged in an escalating feud with Duffy over congestion pricing.
State officials must show that the $9 tolls for driving below 60th Street have either ceased or don’t violate a federal “freedom from tolls” law, the latest letter from Duffy demands.
Duffy argued that the program forces motorists to pay to use federal highways in Manhattan that their tax dollars already funded.
“Anyone needing to drive into the area is either forced to pay a cost-prohibitive toll or required to use the substandard transit system run by the Metropolitan Transit Authority,” the letter states.
How the threat will impact a lawsuit between the MTA and federal government over congestion pricing remains to be seen.
MTA officials filed the lawsuit after Duffy in February announced he’d yank federal approval of congestion pricing.
Both sides had agreed to a trial schedule, but Trump officials played coy on whether they’d submit a court motion to halt congestion pricing.
Duffy’s letter does not mention the ongoing legal case. The feds also had not filed any court paperwork reflecting their new, apparently extrajudicial deadline as of Monday, and have yet to make any filings at all in the MTA’s lawsuit.
Two weeks ago, a judge issued Duffy a deadline of May 27 to submit a formal legal response to the suit.
MTA honcho Janno Lieber said motorists will keep getting tolled as the legal back-and-forth plays out.
“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,” he said in a statement.
The letter drew applause from Rep. Laura Gillen (D-Long Island), who calls congestion pricing a “cash grab” against the Long Island families she represents.
“It’s time for New York to comply with the Federal Highway Administration’s decision and bring the cameras down,” she said.
“Albany needs to find a more responsible way to fund the MTA than raiding the pockets of my constituents, who already face one of the highest cost-of-living burdens in the country.”
Rep. Josh Gottheimer (D-NJ), who’s introduced legislation to pull Department of Transportation grants if New York officials don’t revoke congestion pricing, also slammed them for trying to “bail out the woefully mismanaged MTA.”
“At a time when prices are already through the roof, New York continues to whack Jersey families with their outrageous Congestion Tax,” Gottheimer said in a statement.
“New York must turn the cameras off and stop sticking it to hardworking Jersey families. I’ll keep fighting to lower costs and make life more affordable.”