The Metropolitan Transportation Authority (MTA) in New York filed an application with the federal court on May 5, requesting to prohibit the Department of Transportation from suspending the approval of New York State transportation projects and withholding federal funding assistance due to opposition to congestion pricing policies.
This case originated from the implementation of the congestion pricing policy in New York City on January 5 this year, which involves collecting a $9 toll from vehicles entering the area south of 60th Street in Manhattan. Transportation Secretary Sean Duffy recently warned that if New York does not end this system by May 21, the Department of Transportation may delay approvals for important infrastructure projects and even deny funding.
The MTA is currently seeking a temporary restraining order from the court to prevent the Department of Transportation from taking punitive action against them during the litigation. In the lawsuit, MTA stated that the federal government’s actions are akin to “using funding as leverage to force local governments to concede, rather than resolving disputes through judicial processes.”
President Trump and the Department of Transportation have explicitly opposed the congestion pricing policy. In February, Duffy wrote to the New York State government, stating that they would rescind plans approved during the Biden administration. MTA subsequently filed a lawsuit, arguing that the federal government’s revocation of approvals violated relevant legal procedures. The lawsuit is currently being heard in the U.S. Southern District Federal Court in New York.
According to MTA, the revenue from this system is crucial for maintaining its capital projects. The agency plans to issue bonds with the revenue generated from congestion pricing, aiming to raise $15 billion for projects such as upgrading the subway signaling system, extending the Second Avenue subway to Harlem, and improving accessibility facilities.
If federal funding is frozen, MTA’s overall annual capital expenditure plan of $68.4 billion will also be at risk. The plan relies on about $14 billion in federal funding, covering projects like repairing the infrastructure of Grand Central Station’s train platforms, purchasing thousands of train cars, and upgrading substation facilities.
The congestion pricing policy has also sparked discontent in neighboring New Jersey. The state government has filed a lawsuit, claiming that this move will shift traffic and pollution into its territory. Despite facing multiple legal challenges, the policy was implemented as scheduled on January 5.
The Trump administration believes that the congestion pricing policy will harm small businesses and the working class, affecting local economic activities. Taxpayers have already paid taxes for road transportation, so this would be a repetitive fee. New York Governor Kathy Hochul, on the other hand, says that this policy is a necessary measure to alleviate traffic congestion and improve air quality, with preliminary data showing positive results.
According to MTA data, as of March this year, the traffic flow into the toll zone has decreased by around 7.5 million vehicles, with drops of 8%, 12%, and 13% in January, February, and March, respectively. The first-quarter revenue from congestion pricing reached $159 million, meeting initial financial expectations.
The court has requested the Department of Transportation to submit a written response by May 16, and a hearing is expected to be held on May 27 to determine whether a temporary restraining order should be issued by May 28 to prevent the Department of Transportation from initiating related restrictive measures.