New York defies federal deadline, keeps congestion pricing in place

Despite mounting federal pressure, New York Governor Kathy Hochul is holding firm on Manhattan’s controversial $9 congestion toll. The federal government had set a Sunday deadline for the state to terminate the program, but officials say the tolling system—and the cameras that enforce it—aren’t going anywhere.

“The program is working. Traffic is down, business is up, and the cameras are staying on,” a spokesperson for Governor Hochul said, signaling a strong commitment to the city’s congestion pricing initiative.

The U.S. Department of Transportation (USDOT), however, has taken a firm stance against the program, insisting that New York cease operations by the April 21 deadline. “USDOT will continue to fight for working-class Americans whose tax dollars have already funded and paid for these roads,” the agency stated in a letter to NBC New York.

At the heart of the issue is New York City’s landmark plan, which launched on January 5. The initiative charges most vehicles a $9 fee to enter the central business district—an area stretching from 60th Street down to the tip of the Financial District—during peak hours: 5 a.m. to 9 p.m. on weekdays, and 9 a.m. to 9 p.m. on weekends. The aim is to reduce traffic congestion and generate much-needed revenue for the city’s struggling subway system.

While the federal government claims jurisdiction over highways leading into Manhattan, and argues that the toll places an unfair burden on non-city drivers, state officials disagree. The Metropolitan Transportation Authority (MTA) has maintained that unless a court orders them otherwise, toll collection will continue. So far, a federal judge has sided with New York, and legal experts suggest it could be fall before a final decision is reached in court.

The plan has faced a rollercoaster of deadlines and political opposition—most notably from the Trump administration. On February 19, former President Donald Trump publicly denounced the program, calling himself “king” in a social media post celebrating what he believed would be its downfall. Following that, U.S. Transportation Secretary Sean Duffy issued a formal letter to Governor Hochul, emphasizing the federal government’s stance and attempting to halt the program.

Yet, New York has not wavered. When faced with a March 21 deadline to end the program, the federal government extended it by 30 days. On April 8, USDOT confirmed that the new April 21 deadline would not be moved again.

As the deadline passes without changes, the city continues to implement the tolls, confident in its legal position and policy goals. With traffic already easing and revenue flowing into public transit, New York appears determined to stand its ground—setting the stage for a potential legal battle that could shape the future of urban transportation across the country.