U.S. Transportation Secretary Sean P. Duffy recently outlined specific actions the Federal Highway Administration (FHWA) could take if New York Gov. Kathy Hochul continues the state’s recently implemented congestion pricing.

These actions include halting FHWA-backed projects and funding except safety-related initiatives.

Laying Out the Dispute

A letter was sent to Gov. Hochul calling out the New York State Department of Transportation (NYSDOT) for failing to comply with the U.S. Department of Transportation’s (USDOT) deadline to stop the congestion pricing and refusing to engage in compliance discussions. 

Secretary Duffy also states in the letter that the congestion pricing disproportionally hurts working-class drivers. He argues that the lack of toll-free alternatives for entering the cordoned area of Manhattan is inconsistent with prior Value Pricing Pilot Program implementations and forces drivers to choose between two options: pay the toll or use local transit.

Secretary Duffy also emphasized that the Value Pricing Pilot Program was intended to maintain highways and relieve congestion, not to bail out transit systems.

What Secretary Duffy is Threatening to Do

The USDOT has given the NYSDOT 30 days to state how their non-compliance is not illegal. If the congestion pricing is not stopped, or after evaluating NYSDOT’s response, FHWA determines that New York remains out of compliance, the agency will:

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

• Provide no further NEPA approvals for projects within the borough of Manhattan, except for safety projects. 

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

If non-compliance with the USDOT’s request continues after these measures are implemented, additional actions may be taken, including:

• Providing no further obligations of FHWA funds (both formula and competitive) for projects within New York City, except for safety projects. 

• Providing no further AC authorizations for projects within New York City, except for safety projects. 

• Providing no further NEPA approvals for projects within New York City, except for safety projects. 

If noncompliance continues, the corrective measures stated above may be expanded beyond New York City to other geographic areas within the state.

This follows the USDOT’s cancellation of an agreement authorizing New York to implement a temporary cordon pricing program.

“We have received Secretary Duffy’s letter setting yet another new deadline and are evaluating MTA’s legal options, given that the legal issues raised in the letter are already appropriately before a federal judge," said MTA Chair/CEO Janno Lieber. "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.”