In a move that underscores the ongoing battle between federal and state authorities, the Trump administration’s efforts to dismantle New York City’s congestion pricing program have hit a significant legal snag. An internal memo from the Department of Justice (DOJ), inadvertently filed in court, reveals substantial doubts about the legal foundation of the administration’s strategy to terminate the program.​
The 11-page document, authored by three assistant U.S. attorneys, critiques Transportation Secretary Sean Duffy’s rationale for revoking federal approval of the congestion pricing initiative. Duffy contends that the program, which imposes a $9 toll on vehicles entering Manhattan below 60th Street, is inconsistent with the Federal Highway Administration’s Value Pricing Pilot Program (VPPP) and lacks a toll-free alternative for drivers. However, the DOJ attorneys express skepticism about these claims, noting that courts have historically upheld local governments’ rights to implement such programs under the VPPP. ​
The memo further suggests that Duffy’s arguments are unlikely to withstand judicial scrutiny, stating, “It is unlikely that Judge [Lewis] Liman or further courts of review will accept the argument that the [congestion pricing plan] was not a statutorily authorized ‘value pricing’ pilot under the Value Pricing Pilot Program.” The attorneys also highlight the absence of compelling legal arguments to support Duffy’s position. ​
In light of these challenges, the DOJ lawyers propose an alternative approach: terminating the program through the Office of Management and Budget (OMB) regulations by citing a change in agency priorities. However, they caution that this strategy may also face legal hurdles, as the original agreement lacks explicit termination provisions, potentially necessitating a new environmental review process. ​
The accidental filing of this internal memo has prompted questions about the competence of the federal legal team. DOT spokeswoman Halee Dobbins criticized the mishap, stating, “Are SDNY lawyers on this case incompetent or was this their attempt to RESIST? At the very least, it’s legal malpractice.”
Despite the legal uncertainties, Secretary Duffy remains resolute in his opposition to the congestion pricing program. He has issued a formal notice to Governor Kathy Hochul, demanding the cessation of toll collection by May 21. Failure to comply could result in the withholding of federal funds and environmental approvals for transportation projects in Manhattan.
Governor Hochul, however, has dismissed these threats, asserting the legality and effectiveness of the congestion pricing initiative. She maintains that the program has led to reduced traffic congestion and increased business activity in the city. In a statement, Hochul declared, “Congestion pricing is legal—it’s working. Traffic is down, business is up, and the cameras are staying on.”
As the legal battle continues, the future of New York City’s congestion pricing program hangs in the balance. The inadvertent release of the DOJ memo has not only exposed internal disagreements within the federal government but also complicated the Trump administration’s efforts to dismantle the initiative. With the May 21 deadline approaching, all eyes are on the courts to determine the outcome of this high-stakes conflict.
