Duffy warns New York funding at risk over congestion pricing dispute

In the United States, Transportation Secretary Sean Duffy has threatened to withhold federal funding from New York over Governor Kathy Hochul's resistance to ending the congestion pricing plan. The plan, which charges a toll of $9 for drivers entering Lower Manhattan, faced a termination order from the federal government that was set to take effect on March 21, 2025. Duffy had previously pulled federal approval for the plan in February and granted Hochul a 30-day extension to comply, but emphasized that continued noncompliance would result in severe consequences for the state. Hochul's administration has been a staunch supporter of the congestion pricing initiative, despite its controversy. Duffy criticized this decision as an act of disrespect towards the federal government and a financial burden on working-class commuters who already contribute to highway funding through taxes. New Jersey Governor Phil Murphy also opposes the plan, claiming it is detrimental to middle-class commuters needing access to Lower Manhattan. The issue has escalated to legal disputes, with Hochul's administration filing lawsuits to defend the tolling plan while expressing their intent to continue implementing the tolls unless specifically ordered to stop by a court. Duffy's critique extended beyond the congestion pricing plan, highlighting the need for timely approvals of two vital pipelines that could lower fuel costs significantly. Hochul refuted claims of rising crime in the transit system, advocating instead for federal assistance to enhance safety measures. In a recent meeting with former President Donald Trump, she attempted to sway his perspective on the toll policy but reported no significant progress. The financial stakes are high, as the Metropolitan Transportation Authority relies on congestion pricing funds to support its capital projects. The MTA and its officials assert that the program has yielded positive outcomes, such as reduced travel time and environmental benefits since its initiation in January. Nonetheless, the ongoing conflict between state leadership and federal authorities raises concerns about New York's transportation funding and overall compliance with federal directives.