The Trump administration is taking direct aim at New York’s controversial congestion pricing scheme, issuing an ultimatum to state leaders: shut it down by May 21—or lose federal highway funding.
In a strongly worded letter to state officials, the administration made it clear that New York’s refusal to reverse its tolling plan will carry severe consequences. The warning comes after President Trump’s Department of Transportation officially revoked federal approval for the program back in February, citing regulatory violations and concerns over its economic and legal implications.
Despite the federal order, New York leaders have doubled down on their plan. The Metropolitan Transportation Authority (MTA), which is spearheading the initiative, has even filed a lawsuit against the federal government, arguing that Washington has no authority to stop the tolls. The MTA claims the revenue from congestion pricing is essential to fund upgrades to the state’s transit system.
But Trump officials aren’t backing down—and they’re ready to hit New York where it hurts: federal funding.
“The state is blatantly defying federal oversight,” one senior administration official said. “If they continue down this path, they will be held accountable. Federal taxpayers should not be forced to subsidize states that ignore the law.”
The congestion pricing program, which launched in January, charges drivers entering Manhattan’s central business district during peak hours. While New York Democrats claim it will reduce traffic and improve public transit, critics call it a regressive cash grab that punishes working-class commuters, truckers, and small businesses. Many drivers now face daily tolls of up to $23 just to go to work or make deliveries.
Opposition to the program has been growing steadily—especially from neighboring states like New Jersey, where residents are outraged over being charged to drive into the city despite already paying high taxes and tolls elsewhere. Local business owners in New York City have also raised alarm, saying the fees are killing foot traffic and straining supply chains.
President Trump has made clear that he views the congestion pricing plan as just another example of failed blue-state policy—one that burdens the middle class, drives up costs, and fails to deliver promised results.
With the May 21 deadline looming, the battle between the federal government and New York state is heating up. If Governor Kathy Hochul and the MTA refuse to comply, they risk losing critical infrastructure funding—a move that would put billions of dollars for roads and bridges on hold.
For the Trump administration, it’s not just about traffic—it’s about restoring federal accountability, reining in reckless taxation, and standing up for working Americans being squeezed by out-of-touch politicians.