On Tuesday, there was a disagreement between the Federal Department of Transportation and the Metropolitan Transportation Authority (MTA) of New York City regarding the end date for the $9 congestion fee in downtown Manhattan. This dispute arose in response to rumors circulating the previous day claiming that the congestion fee cameras in Manhattan would continue operating at least until October 2025. Both the Federal Department of Transportation and the MTA dismissed this as “fake news.”
The Federal Department of Transportation released a statement on X platform on Tuesday, asserting that “there have been no changes to the final deadline to stop collecting the congestion fee (April 20).” They further clarified that “the agreement made for the judicial process has no impact on the substance or position of our case,” and referred to the reports as “blatant lies from the New York elite liberal media, who are eager to use fees to drive the poor out of the city.”
Several major media outlets had reported the day before, citing “court documents,” that the MTA and the Federal Department of Transportation had reached an agreement allowing the congestion fee in New York to continue until this fall, pending a legal ruling by the federal court on the legitimacy of the plan.
The congestion fee plan by MTA was officially launched on January 5, 2025. In February, the federal government announced the revocation of the plan, leading MTA to file a lawsuit. Initially, the Federal Department of Transportation had insisted that MTA shut down surveillance cameras by March 21, but later extended the deadline by 30 days, requiring New York to shut down the cameras by April 20.
The Federal Department of Transportation emphatically stated that the congestion fee plan led by the New York State government is “illegal” and is a class war against the working class, unfairly burdening drivers who already contribute through taxes for road maintenance. They vowed to use all tools at their disposal later this month to address non-compliance and continue to fight against this illegal tax imposed on hardworking Americans. However, there was no mention of seeking a temporary injunction from the court to forcibly stop the congestion fee.
Transportation Secretary Sean Duffy criticized the plan as a forced “tax” and threatened to withhold federal funds. Yet, New York Governor Kathy Hochul insisted on maintaining the plan’s implementation during the litigation.
Last week, Secretary Duffy, accompanied by New York City Mayor Eric Adams, visited the New York City subway system. He criticized the deplorable condition of the subway and suggested that Elon Musk’s government efficiency department should review MTA’s financial situation.
The Federal Department of Transportation warned, “Don’t believe the MTA’s rhetoric; they are just eager to create fake news to cover up the fact that their passengers are constantly under attack.”
MTA reports showed that the congestion fee plan resulted in a reduction of one million vehicles entering the busiest areas of Manhattan, leading to faster commuting times and an increase in transit times across the Hudson River and East River by 10% to 30% or more. Additionally, bus services improved, with a 7.3% increase in subway ridership on weekdays and a 12% increase on weekends.
In the first two months following the implementation of the congestion fee (January and February), a total of $100.5 million was collected. The revenue for January was $48.66 million, and for February, it was $51.90 million. According to MTA’s plan, 80% of the revenue will be allocated to subway and bus projects in New York City, while the remaining 20% will be distributed to the Metro-North Railroad and the Long Island Rail Road.