NYC Could Lose Highway Funds If Congestion Pricing Cotinues, Feds Say

NEW YORK CITY — New York City highway projects could lose federal funding if congestion pricing tolls continue to operate, The Trump administration said on Monday.

U.S. Transportation Secretary Sean Duffy, in a letter to Gov. Kathy Hochul, detailed that the Federal Highway Administration would hold up funds for some federally funded road projects in the city, according to Gothamist.

City officials previously had an April 20 deadline to end the program — now Duffy has given the city until May 21 to terminate congestion pricing.

Federal officials have threatened to hold federal highway funding for projects in Manhattan, but also would target funding for street projects across the city and other parts of the state if congestion pricing continues.

Duffy said they would go after projects “essential for safety.”

“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.”

In a statement on Monday, MTA Chair and CEO Janno Lieber said the agency is evaluating its legal options, but 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.”

The latest development comes as there is still debate over a reported agreement with the MTA that could continue the program until at least early fall, Patch previously reported.

Hochul has also previously said she has no plans to shut down the program.

A timeline submitted by the MTA to a federal judge shows the tolls will continue at least through late October, due to legal motions the MTA and the federal government have agreed to, Patch previously reported.

A judge would then determine the fate of congestion pricing.

Duffy has called congestion pricing a "slap in the face to working class Americans and small business owners."

President Donald Trump had initially given the MTA until March 18 to end the program and tolls to allow for an "orderly cessation."

Since Jan. 5, drivers have been charged $9 entering Manhattan below 60th Street.

The MTA has said the toll would bring in nearly $500 million a year and could generate more than $15 billion for public transportation upgrades in New York City.

This is a developing story. This post will be updated.