U.S. Transportation Secretary Sean Duffy has sent a letter to New York Governor Kathy Hochul outlining the steps the federal government will take if the State does not rescind the New York City congestion pricing program that went into effect January 5, 2025.

The letter states that under federal law, all roads constructed with federal funds must be toll-free unless an exception applies. In November 2024, the Biden Administration signed an agreement with New York that granted an exception to allow the congestion pricing plan to go forward. But on February 19, 2025 Secretary Duffy terminated the agreement and rescinded the exception. Nevertheless, NY City continues to collect the congestion pricing tolls for entering Manhattan below 60^th Street.

Now Secretary Duffy has given New York State until May 21 to show why sanctions should not apply. If the tolls are not stopped, or after evaluating NYSDOT’s response, the Federal Highway Administration determines that New York remains out of compliance, U.S. DOT will take the following actions: 

• No further advance construction (“AC”) authorizations for projects within the borough of Manhattan, except for projects determined by FHWA to be essential for safety;  

• No further NEPA approvals for projects within the borough of Manhattan, except for safety projects; and. 

• No further approvals of Statewide Transportation Improvement Program amendments concerning New York Metropolitan Transportation Council TIP modifications.