• New York's $9 congestion fee for entering parts of Manhattan remains active despite federal pressure.
• Transportation Secretary Sean Duffy threatens to cut federal funding if congestion pricing continues.
• Governor Hochul and the MTA defend the program, citing reduced traffic and environmental benefits.

New York’s $9 congestion toll on most drivers entering the busiest part of Manhattan remains in effect despite a deadline from the Trump administration demanding its halt. The Metropolitan Transportation Authority (MTA) confirmed that traffic cameras continue to assess the fee, as the state fights back against federal intervention, indicating that “the cameras are staying on,” according to Avi Small, spokesperson for Governor Kathy Hochul, in a statement to the Los Angeles Times.

Transportation Secretary Sean Duffy warned Governor Hochul that the state could face significant consequences for maintaining the tolling program, which was federally approved under the Biden administration. Duffy stated in his letter that the federal government would not support New York financially if the state continued to implement what he termed an “illegal toll,” leading him to direct the New York State Department of Transportation to present their case by May 21. He expressed that “we won’t foot the bill if Governor Hochul continues to implement an illegal toll,” emphasizing his administration’s discontent with the program, as reported by The Hill.

The congestion pricing initiative, in effect since January 5, was designed to alleviate roadway congestion and generate revenue for public transit. Following substantial pushback from the Trump administration, which aims to end the program, the MTA has filed a lawsuit to ensure that the tolling remains, arguing that its benefits are evident in reduced vehicular traffic entering the area. John J. McCarthy, the chief of policy and external relations for the MTA, affirmed, “congestion pricing is here to stay” as they challenge the legality of the Trump administration’s stance in court, according to The New York Times.

With the impending deadline for compliance looming, federal penalties are expected to begin as early as May 28 if New York fails to respond adequately to Duffy’s demands. The secretary mentioned that further federal action could extend beyond Manhattan to impact all constructions reliant on federal aid throughout New York state, revealing the high stakes for state funding in transportation projects, reports The Hill.