USDOT Could Pull Federal Funding for New York

The federal government gave the state until May 21 to end new York City’s congestion pricing program or risk losing federal funding and project approvals.

1 minute read

May 22, 2025, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Traffic and old buildings in Manhattan, New York City.

Antonel / Adobe Stock

The Department of Transportation is threatening to withhold federal funding an project approvals from the state of New York while Governor Kathy Hochul remains defiant of the Trump administration’s efforts to kill New York City’s congestion pricing program.

As Dan Zukowski explains in Smart Cities Dive, despite the program’s demonstrated success, USDOT called on the state to end the program by May 21 in an April 21 letter. Since it launched in January, it has exceeded revenue projections and reduced traffic by 11 percent.

Smart Cities Dive offers a timeline of the program’s controversial history. After being approved by New York State in 2019, the program was forced to undergo an environmental assessment to gain final federal approval in 2023. In 2024, the MTA Board approved the final pricing of $9 for most cars, and the program finally took effect in early 2025. 

Wednesday, May 21, 2025 in Smart Cities Dive

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 21, 2025 - Diana Ionescu

Interior of Place Versailles mall in Montreal, Canada.

Montreal Mall to Become 6,000 Housing Units

Place Versailles will be transformed into a mixed-use complex over the next 25 years.

May 22, 2025 - CBC

Flat modern glass office tower with "County of Santa Clara" sign.

Santa Clara County Dedicates Over $28M to Affordable Housing

The county is funding over 600 new affordable housing units via revenue from a 2016 bond measure.

May 23 - San Francisco Chronicle

Aerial view of dense urban center with lines indicating smart city concept.

Why a Failed ‘Smart City’ Is Still Relevant

A Google-backed proposal to turn an underused section of Toronto waterfront into a tech hub holds relevant lessons about privacy and data.

May 23 - Governing

Pale yellow Sears kit house with red tile roof in Sylva, North Carolina.

When Sears Pioneered Modular Housing

Kit homes sold in catalogs like Sears and Montgomery Ward made homeownership affordable for midcentury Americans.

May 23 - The Daily Yonder