US extends deadline for New York to end Manhattan congestion program

(Reuters) - U.S. President Donald Trump's administration on Thursday extended by 30 days a March 21 deadline for New York state to end Manhattan's congestion pricing program.

The U.S. Transportation Department in February rescinded federal approval of the program that had been issued under Trump's predecessor Joe Biden after a lengthy review.

Transportation Secretary Sean Duffy said on Thursday the department would grant the one-month extension as discussions continue but warned: "Know that the billions of dollars the federal government sends to New York are not a blank check. Continued noncompliance will not be taken lightly."

Congestion pricing, which was introduced in January, charges a toll in Manhattan on vehicles driving south of 60th Street. The program aims to raise revenue to fund mass transit capital improvements. Officials say it has cut down traffic and sped the flow of vehicles.

Opponents, including Duffy, say the scheme takes money from working people and leaves drivers without a free highway option.

Democratic New York Governor Kathy Hochul met with Republican Trump earlier this month to talk about the program. On Tuesday, New York's Metropolitan Transportation Authority CEO Janno Lieber said it would not honor the Department of Transport's request it halt congestion pricing by Friday absent a court order.

Duffy said on Thursday that Hochul's refusal to end the scheme "and your open disrespect towards the federal government is unacceptable."

A spokesperson for Hochul said: "Congestion pricing is working. Traffic is down, business is up and support for this first-in-the-nation initiative continues to grow." Duffy's statement does not change Hochul's position, the spokesperson said, adding: "The cameras are staying on."

Charged via electronic license plate readers, private cars pay the congestion charge once a day regardless of how many trips they make into the central business district. Under the program, most passenger vehicles are charged $9 during peak periods to enter Manhattan south of 60th Street.

Duffy also this week threatened to withhold federal transit funds from the MTA over crime and safety on the New York City subway system.

He wants the MTA to provide documents by March 31 on its plan to "ensure effective security for passengers and workers." The MTA has said crime has fallen sharply on subways.



(Reporting by David Shepardson; Editing by Rosalba O'Brien)