US Transportation Secretary, Sean P. Duffy, has outlined a series of potential repercussions that could befall the state of New York as a result of its continued operation of the Congestion Relief Zone in Manhattan, which the Secretary recently called to be ceased immediately.
Outlining a list of actions that could be taken by the Federal Highway Administration (FHWA), Duffy has claimed that the initiatives operation ‘continues the state’s illegal toll on working families’, and may lead to a halt in FHWA-backed projects and funding.
In a letter penned to Governor Kathy Hochul; the New York State Department of Transportation (NYSDOT) has been given thirty days to state reasoning for its lack of compliance, as well as provide proof that doing so is within legal limits.
If, upon receipt of the reasoning, the FHWA deems the NYSDOT’s reasoning as dissatisfactory, the agency will then take action in several forms, with initial repercussions including the halting of further advance construction authorisations within the borough of Manhattan (with an exception for projects deemed essential for safety reasons), no further NEPA approvals for projects within Manhattan and no further approvals of Statewide Transportation Improvement Program amendments concerning New York Metropolitan Transportation Council TIP modifications.
Additional measures may include the ceasing of all of the above within the entirety of the state of New York.
U.S. Transportation Secretary Sean P. Duffy, said:President Trump and I will not sit back while Governor Hochul engages in class warfare and prices working-class Americans out of accessing New York City.
The federal government sends billions to New York—but we won’t foot the bill if Governor Hochul continues to implement an illegal toll to backfill the budget of New York’s failing transit system. We are giving New York one last chance to turn back or prove their actions are not illegal.
In a previous letter to the Governor, the US Transportation Secretary instructed that the pilot be terminated due to its ‘unprecedented scope’ and lack of provision of toll-free options for drivers lacking other options, as well as its plan to raise revenue for transit, rather than reduce congestion (which, the Department of Transportation has stated, ‘runs contrary to the purpose of the VPPP’).
The move prompted the filing of a lawsuit by Governor Hochul, who stated that the zone would remain in operation until such time as a judge orders a full verdict on the situation.
Since the pricing plan’s introduction on 5 January 2025, MTA data has shown that traffic has decreased by up to 11% within the Central Business District (CBD), with a total of three million fewer vehicles having entered the area between January and February when compared to previous statistics from 2024.
Whilst traffic has decreased, its rate of movement has seen increases of up to 30% along bridge and tunnel crossings throughout February when compared to numbers from 2024, resulting in commuters saving up to 21 minutes per trip through the CBD.
Bus services have also seen reductions in overall journey times, with express service delays beyond 10 minutes dropping to a rate of up to 23%.
As of March 2025, the system had generated a total of 48.66 million USD in revenue, with a net of 37.5 million USD, according to data published by the MTA, with a projected estimation of 500 million USD to be generated by 2026.
Elsewhere, the system has seen a reduction in overall crashes within the area, with data sourced from Crashmapper showing that the first 12 days of the new CRZ have seen the number of crashes in the area reduced by 55%, with overall injuries down by 51% year over year.
