Congestion Pricing Showdown: Federal Pressure on NYC Projects

U.S. Transportation Secretary Sean Duffy threatens to withhold environmental approvals for New York's transportation projects unless Governor Kathy Hochul ends Manhattan's congestion pricing. This policy requires most passenger vehicles to pay $9 during peak periods. Hochul disregarded an April deadline, prompting potential federal actions by May 28.

In a high-stakes political standoff, U.S. Transportation Secretary Sean Duffy has issued an ultimatum to New York's Governor Kathy Hochul: end Manhattan's congestion pricing scheme or face withheld environmental approvals for vital city transportation projects.

The congestion pricing program, which started in January, imposes a $9 fee on most passenger vehicles during peak hours to reduce traffic in Manhattan south of 60th Street. Despite an original April 20 deadline set by Duffy, Hochul has not complied, pushing the administration to consider further action.

As tensions rise, the Department of Transportation signals it may begin imposing consequences by May 28 if no resolution is reached, potentially impacting key infrastructure initiatives in New York City.

(With inputs from agencies.)