The U.S. Department of Transportation has granted New York City a 30-day extension to end its congestion pricing program, pushing back the original March 21 deadline set by the Trump administration.

Transportation Secretary Sean Duffy announced the extension in a post on X, saying,
“We will provide New York with a 30-day extension as discussions continue. Know that the billions of dollars the federal government sends to New York are not a blank check. Continued non-compliance will not be taken lightly.”

The extension marks the latest escalation in the standoff between the federal government and New York State over the future of the nation’s first congestion pricing system, which charges drivers entering Manhattan’s busiest zones in an effort to reduce traffic and fund public transit.

Despite the federal pressure, Governor Kathy Hochul signaled no change in course.

“Congestion pricing is working. Traffic is down, business is up, and support continues to grow,” her spokesperson said. “We’ve seen Secretary Duffy’s tweet, which doesn’t change what Governor Hochul has been saying all along: the cameras are staying on.”

The Metropolitan Transportation Authority (MTA) echoed that sentiment, saying only a court order could halt congestion pricing and asserting they remain on solid legal ground.

Officials cite rising toll revenues, declining noise complaints, and reduced traffic congestion as signs the program is achieving its goals. The funds collected are earmarked for transit upgrades, including subway and bus improvements.

Opposition remains fierce across the river. New Jersey Governor Phil Murphy condemned the program, saying,
“Every day that congestion pricing continues… is another day hardworking New Jerseyans are unfairly tolled.”

Rep. Josh Gottheimer of New Jersey accused the MTA of outright defiance, saying,
“They haven’t shown an ounce of interest in complying with the directive. The congestion tax is punishing hard-working, middle-class families just trying to get by in a time of rising prices.”

On Thursday, supporters and opponents rallied on both sides of the Hudson River, reflecting the sharp divide over the policy.

New York City Comptroller Brad Lander dismissed the federal threats, saying:
“The US DOT, Donald Trump, Elon Musk — whoever else they trot out — don’t have the legal authority to withhold funding based on fake new rules they make up.”

As the political fight escalates, the 30-day extension gives both sides limited time to reach a resolution — or prepare for a legal showdown that could determine the future of congestion pricing in the U.S.