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A pivotal court hearing scheduled for Wednesday could determine the future of New York City's controversial congestion pricing program, as the Metropolitan Transportation Authority fights to preserve the toll system against federal attempts to shut it down.
The legal showdown centers on a February 19 decision by Transportation Secretary Sean Duffy to revoke federal approval for the program, which has been collecting tolls from vehicles entering Manhattan below 60th Street since January 5, 2025.
"The cameras are staying on," declared New York Governor Kathy Hochul after Duffy's announcement, setting the stage for a high-stakes legal battle between state and federal authorities.
The MTA filed a lawsuit the same day challenging Duffy's authority to terminate the program, arguing the Federal Highway Administration lacks legal power to withdraw its previous approval. The MTA also claims the federal government failed to conduct required environmental reviews before attempting to end the program.
President Trump has been a vocal opponent of congestion pricing, calling it a "tax" on drivers. Secretary Duffy argues the toll places an unfair burden on motorists, while the MTA counters that the program has successfully reduced traffic congestion and generated approximately $159 million in revenue during its first three months of operation.
The congestion pricing program, the first of its kind in the United States, charges drivers $9 to enter Manhattan's Central Business District. The revenue is earmarked for MTA infrastructure projects, including subway improvements and accessibility upgrades.
The program's implementation followed years of legal challenges and political maneuvering. In June 2024, a federal judge ruled that the program had undergone sufficient environmental review, clearing a major hurdle. Governor Hochul initially paused the program that same month before allowing it to proceed in late 2024.
Today's hearing represents the latest chapter in what legal scholars describe as decades of conflict between local transportation initiatives and federal oversight. The court's decision could have far-reaching implications for cities nationwide considering similar congestion reduction strategies.
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