New York is once again under the spotlight as the Biden administration re-issues a stern ultimatum concerning a contentious toll levied on drivers entering central Manhattan. This year marks the second occasion when the federal government has ordered New York to cease imposing this charge. Still, the state has shown resistance each time.
On Monday, U.S. Transportation Secretary Sean Duffy announced that New York has until May 21 to halt the toll collection or justify how it is not violating federal statutes, despite the fact that its federal approval was nullified back in February. Duffy issued a compelling cautionary letter to Governor Kathy Hochul, indicating that non-compliance could jeopardize New York’s federal funding and approvals from the Federal Highway Administration for certain infrastructure projects.
However, Governor Hochul, a Democrat, stood her ground in the face of pressure. She emphasized that congestion pricing is not only legal but effective, referencing the advantages, such as decreased traffic, increased business, and a committed camera system, all facilitating the toll’s implementation. This toll initiative, which commenced on January 5, targets traffic reduction and aims to generate billions in revenue to support public transportation services like subways, commuter trains, and buses across New York.
The toll’s introduction faced opposition from former President Donald Trump. As a native of New York, with properties like the Trump Tower situated in the affected zone, he pledged to dismantle the plan once he assumed office. Following the federal approval’s revocation earlier this year, Duffy expressed displeasure, branding the initiative as a direct affront to working-class Americans and small business owners. Initial warnings dictated a deadline of March 21 to cease toll collections, but the Metropolitan Transportation Authority filed a legal challenge against Duffy’s directive, prompting an extension to April 20.
Despite these legal confrontations, in his Monday correspondence, Duffy accused New York of openly defying federal statutes. He remarked that while the federal government allocates billions to New York, it will not support the state financially if Governor Hochul persists in this allegedly illicit tolling practice to shore up the struggling transit system’s budget. He underscored that New York has a final opportunity to capitulate or demonstrate the legality of their actions.
The congestion toll, which varies by vehicle type and time of day, is additional to the existing costs drivers face while entering Manhattan via its bridges and tunnels. A majority of passenger vehicles are charged $9 during peak weekday hours and on weekends. In contrast, the cost drops to $2.25 during off-peak times.
Globally, various metropolises such as London and Stockholm have long since incorporated similar measures to alleviate urban congestion effectively.