On February 19, 2025, the Secretary of Transportation sent a letter to New York Governor Kathy Hochul announcing his conclusion that New York City's congestion tolling program is not lawful. Under 23 U.S.C. § 301, roads constructed with federal funding must generally be free of tolls, but the Congress allowed limited exceptions including one specifically permitting pilot projects that test congestion reducing techniques. The letter terminates the previous agreement reached by the Federal Highway Administration and New York State establishing New York City's program as one such pilot. The Secretary's letter argues both that the type of tolling New York chose to use is not permissible in this context under existing law, and that the level at which tolls were set was improperly guided by New York's revenue goals rather than purely by the tolls' expected effect on congestion.
Later in the same day, New York's Metropolitan Transportation Authority filed suit challenging DOT's attempt to terminate the agreement. The case is Metropolitan Transportation Authority v. Duffy, No. 25-cv-1413 (Feb. 19, 2025, S.D.N.Y.).