President Donald Trump and Transportation Secretary Sean Duffy threatened to cut off federal funding for construction projects in New York City if Governor Kathy Hochul does not end Congestion Pricing scheme by the deadline.
In a letter to Hochul Duffy wrote, “I write to warn you that the State of New York risks serious consequences if it continues to fail to comply with Federal law, and to direct New York to show cause why the Federal Highway Administration (FHWA) should not impose appropriate measures to ensure compliance.”
President Trump previously set a deadline of May 21 for NY to “cease collection of all tolls” under Congestion Pricing and Hochul shot back at the time that she was standing firm and the Congestion Pricing cameras would keep running.
“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,” Duffy said in a statement. “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.”
Duffy noted that, “New York has not responded to FHWA's requests for information. You have also publicly declared that New York will continue to collect tolls in open defiance of Federal law, and the April 20, 2025, deadline has now passed without New York taking action to comply.”
The Federal Highway Administration will begin taking action against NY on May 28 if Hochul does not end Congestion Pricing. Sanctions would remain until NY decides to end the Congestion Pricing tax.
Duffy’s also threatened to expand the “corrective measures” to other regions of New York “if any noncompliance continues”.
Hochul, for her part, maintains that Congestion Pricing is working by reducing air pollution and easing traffic congestion in Manhattan’s busy business district. Additionally, it is raising much needed revenue for MTA maintenance and upgrade projects in a deteriorating bus and train system. MTA has also filed a lawsuit to keep Congestion Pricing going.
Hochul’s Congestion Pricing taxation scheme charge $9 per car when entering certain parts of Manhattan. The tax was originally set at $15 and was reduced in an effort to soften the blow and ‘sell’ the program to the public. The program was originally approved under the Biden administration and Trump has been openly opposed to these schemes from the start. Congestion pricing remains wildly unpopular with the public.