The Metropolitan Transportation Authority (MTA) is heading to federal court in a bid to stop the U.S. Department of Transportation from withholding funding amid an escalating legal battle over New York’s congestion pricing program.

The showdown will take place Tuesday at 10 a.m. in a Lower Manhattan courtroom, where a federal judge is considering a preliminary injunction that would prevent the Trump administration from cutting off federal transportation funds to New York while the case is ongoing.

The dispute centers on the state’s refusal to halt its congestion pricing initiative, despite a May 21 federal deadline ordering the MTA to suspend the program. The plan currently charges most drivers a $9 toll to enter Manhattan south of 60th Street, a measure that has generated both revenue and controversy since its rollout on January 5.

Transportation Secretary Sean Duffy has warned that continued defiance could result in the loss of federal approvals and funding for other key transportation projects in the state. In response, the MTA is seeking judicial protection to prevent such punitive actions as its legal challenge unfolds.

In a new court filing, the Transportation Department urged U.S. District Judge Lewis Liman to reject the MTA’s request for an injunction, arguing that no final decision has been made regarding penalties. Duffy further asserted that the administration has “the authority to terminate the agreement based on changed agency priorities.”

The MTA, however, maintains that it is at an impasse with federal officials and that the threats of financial retaliation pose an immediate risk to critical infrastructure investments.

The case marks a major test of federal authority over local transportation initiatives, as well as the fate of the country’s first congestion pricing program—a cornerstone of New York’s long-term transit funding strategy.