NEW YORK — New York’s contested congestion pricing system in Manhattan is under federal scrutiny as the U.S. government pressures state officials to suspend the program next month, yet state representatives are determined to continue the initiative aimed at reducing traffic and increasing transit funding. The Federal Highway Administration’s stance, communicated in a letter shared by the U.S. Department of Transportation, demands the cessation of the $9 toll for most vehicles entering neighborhoods south of Central Park by March 21.
Transportation Secretary Sean Duffy had previously rescinded federal approval of the toll, labeling it as an unnecessary burden on working-class citizens and small business owners. However, New York State’s Democratic Governor, Kathy Hochul, pledged a structured resistance against this federal order, asserting the program’s significance at a Metropolitan Transportation Authority (MTA) board meeting.
Hochul defended New York’s approach during a private meeting with President Trump at the White House, presenting evidence of the program’s initial successes. Meanwhile, the MTA has initiated a federal lawsuit contesting the Trump administration’s authority to reverse approval granted during President Joe Biden’s tenure.
Janno Lieber, Chair and CEO of MTA, has vocalized strong confidence in the legal standing against the federal decision, citing existing case law about procedural requirements for revoking such programs. He stated that this litigation takes a robust stance on maintaining the congestion pricing initiative.
Since its launch on January 5, the congestion pricing plan appears to provide positive impacts, with reports indicating a 10% reduction in daily vehicles entering the toll zone, resulting in improved traffic conditions. Increases in pedestrian activity and economic benefits are noted, with rises in Broadway attendance, restaurant bookings, and retail sales.
The fiscal benefits are substantial, with the MTA expecting to collect around $500 million from tolls by the end of the year, facilitating essential transit improvements. Despite the opposition, Lieber emphasized on NY1 that New York would not revert to past traffic conditions detrimental to the city’s economy and residents’ quality of life.
This high-stakes legal battle over Manhattan’s congestion pricing system signals broader implications for similar toll initiatives in America, as New York holds firm against federal intervention.
