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4/22/2025
U.S. Transportation Secretary Sean Duffy yesterday announced the Federal Highway Administration (FHWA) could halt federal funding for highway projects in New York and take other actions if Gov. Kathy Hochul doesn't end a congestion pricing program that provides funding for the Metropolitan Transportation Authority.
Duffy outlined the potential actions in a letter to Hochul if she doesn't call off what Duffy and the Trump administration claim is an illegal tolling program. Under federal law, roads built using federal funding cannot charge tolls.
In November 2024, the Biden administration approved a value pricing pilot program (VPPP) that allowed an exception for a tolling program designed to reduce congestion in New York City's central business district. The revenue generated by the tolls will help fund repairs and improvements to MTA's subway, bus and commuter-rail systems.
After the Trump administration took control of the federal government in January, Duffy informed Hochul on Feb. 19 that he was terminating the VPPP. In response, Hochul and MTA took the Trump administration to court. In March, Duffy gave the state a 30-day extension to figure out how it will end the program; that deadline was April 20 and the state still hasn't responded.
Duffy's letter yesterday said the state's transportation department now has until May 21 to comply or the FHWA could begin revoking funding and other approvals for non-safety related highway projects in Manhattan.
“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," Duffy said in a press release. "We are giving New York one last chance to turn back or prove their actions are not illegal.”
In a prepared statement, MTA Chair and CEO Janno Lieber yesterday said the MTA is evaluating its legal options, but the legal issues raised in Duffy's latest letter are already 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," Lieber said.