Duffy gives New York ‘one last chance’ to end congestion pricing

Transportation Secretary Sean Duffy is giving New York another month to end congestion pricing, but this time, he has laid out what will happen if it doesn’t.

On Monday, April 21, Duffy issued a letter to Gov. Kathy Hochul warning her of “serious consequences” if she does not comply with the Federal Highway Administration’s February order to end congestion pricing. The Sunday, April 20 deadline to end the program has been extended to May 21.

Two months ago, FHWA revoked its approval of congestion pricing under the Value Pricing Pilot Program. Duffy said the agency erroneously approved the program under former President Joe Biden. He claimed congestion pricing is an ineligible value pricing pilot program, as it does not provide a toll-free alternate route and acts primarily as a revenue scheme for public transit, with reducing congestion being a secondary priority.

Initially, the New York State Department of Transportation had until March 21 to end congestion pricing. However, Hochul made it clear that the state had no intention to comply. The Metropolitan Transportation Authority filed a federal lawsuit against Duffy the same day he issued the letter.

Just one day before the March 21 deadline, Duffy gave Hochul another month to terminate the congestion pricing program. Although the letter did not specify the consequences of not complying, Duffy hinted in a social media post that federal funding could be at risk.

.@GovKathyHochul — the federal government and @POTUS are putting New York on notice.

Your refusal to end cordon pricing and your open disrespect towards the federal government is unacceptable.

Just as your high tolls and no free road option are a slap in the face to hard…

— Secretary Sean Duffy (@SecDuffy) March 20, 2025

On Monday, April 21, Duffy made that threat official and explicit.

New York has until May 21 to either end congestion pricing or convince the U.S. DOT that continuing to collect the tolls does not violate federal law.

If the state fails to do so, FHWA will not approve any project in Manhattan that would require federal approval – other than safety projects – until New York complies. And Duffy isn’t stopping there.

If New York continues to collect congestion pricing tolls, FHWA will stop all new funding and approval for non-safety projects throughout all of New York City, not just the borough of Manhattan. FHWA also may include other areas of the state outside of the Big Apple if necessary.

“President Trump and I will not sit back while Gov. 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 Gov. 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.”

Hochul leaned further into her previous insistence that congestion pricing is legal and will continue.

The cameras are staying on. pic.twitter.com/wQFjFB56nL

— Governor Kathy Hochul (@GovKathyHochul) April 21, 2025

Metropolitan Transportation Authority CEO Janno Lieber also doubled down on keeping the cameras on.

“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,” Lieber said in a statement. “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.”

According to MTA, congestion pricing is working. In its first full month in February, the program generated nearly $52 million, putting it on pace to reach the projected $500 million annually. Trucks accounted for 9% of that revenue. In March, vehicle traffic in the central business district was down 13%.

There appears to be no negative impact on businesses in the area. MTA claims that restaurant reservations are up 5% and retail sales are on track to be nearly $1 billion higher in 2025 compared to last year.

The trucking industry has fought against congestion pricing.

The Owner-Operator Independent Drivers Association has pointed out that truck drivers do not have the luxury of using public transit to avoid tolls. Furthermore, they usually have little control over their schedules.

“We routinely have no other choice than to drive through metropolitan areas during periods of high congestion because of the rigidity of current federal hours-of-service requirements,” OOIDA President Todd Spencer said. “Additionally, shippers and receivers generally have little regard for a driver’s schedule, frequently requiring loading and unloading to occur at times when nearby roads are most congested. New York City’s congestion pricing plan was anti-trucker to begin with, and we will continue fighting to ensure it doesn’t come back. Beyond New York City, we encourage the Trump administration and Congress to fight the expansion of tolling across the country.”

How do New Yorkers feel about congestion pricing? That depends on who you ask.

Last year, before the program began, a Siena College survey found about 60% opposed the program, including majorities across the political spectrum. But a more recent survey conducted by Morning Consult showed that 60% of New Yorkers want to keep congestion pricing, including half of Republicans.

However, another poll by Third Avenue Institute suggests New Yorkers are more deeply divided on the issue. That poll found that 46% oppose congestion pricing, while 45% support the tolls. Those living in Manhattan and Brooklyn generally support the program, while residents in every other borough mostly oppose it. There is also a deep political divide, with 49% of Democrats in favor of congestion pricing but 92% of Republicans against it. LL