DOJ Shifts Oversight in NYC Congestion Pricing Case

A leaked internal memo has revealed that federal prosecutors doubt the legal viability of efforts to dismantle New York City's congestion pricing program, citing weak arguments about the program's status as a 'value pricing' pilot and its lack of a toll-free alternative. The memo, briefly posted in a court docket, led to an embarrassing disclosure that prompted the transfer of case oversight from the Southern District of New York to the Department of Justice's Civil Division in Washington, D.C. Transportation Secretary Sean Duffy and the Trump administration have threatened to withhold federal funds unless the program is stopped, but New York officials, including Governor Kathy Hochul, continue to defend its legality and effectiveness. The memo also suggests a fallback legal strategy based on shifting agency priorities, though it concedes this is unlikely to succeed since no federal funds were used for the program. The case will now proceed with a new legal team. The controversy highlights ongoing legal and political tensions over congestion pricing in New York.