Congestion Pricing Hits Roadblock: Federal Pushback and Legal Hurdles Unveiled

New York’s Metropolitan Transportation Authority is refusing to back down. Despite four federal deadlines and threats to cut off billions in funding, the MTA is standing firm on its congestion pricing program — and the Biden administration may have just overstepped its legal bounds.

MTA Refuses to End Manhattan Congestion Pricing

The standoff between the MTA and the U.S. Department of Transportation has reached a boiling point. Secretary Sean Duffy set a May 21 deadline for New York to end its controversial congestion pricing program, which charges vehicles entering Manhattan south of 60th Street. But the MTA refused — again.

MTA officials argue that the program was lawfully approved in 2019 and any attempt to force its termination is legally invalid. They’ve called the Biden administration’s threats to withhold $2.5 billion in annual funding “a sham,” accusing Duffy of playing politics with infrastructure.

Federal Action Called ‘Procedurally Improper’

The MTA isn’t just ignoring the order — it’s taking the fight to federal court. In a Manhattan courtroom, MTA attorney Roberta Kaplan blasted Duffy’s decision as procedurally improper, saying the administration failed to provide any notice or hearing as required by federal rules.

Even Governor Kathy Hochul is siding with the MTA, stating the state won’t stop the tolling system unless a court orders it. The system was designed to reduce traffic and fund critical MTA projects, but now it’s at the center of a power struggle between state and federal authorities.

Biden Admin’s Legal Standing in Question

Now, there’s doubt inside the federal government itself. A leaked DOJ memo reportedly questions whether Secretary Duffy even has the legal standing to revoke approval for the tolling program. That could shift the administration’s strategy from regulatory enforcement to vague “policy concerns.”

While the Department of Transportation claims it’s reviewing compliance, it’s clear the Biden administration is in a bind. If they act too aggressively, they risk setting a precedent of federal overreach. But if New York wins, it may open the floodgates for other cities to implement tolling without federal interference.

This legal clash could redefine state vs. federal authority in transportation planning — and the outcome will ripple far beyond Manhattan’s congested streets.

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