Trump administration replaces lawyers in NYC congestion pricing challenge

By David Shepardson

WASHINGTON (Reuters) -The Trump administration is replacing lawyers in the U.S. Attorney's Office in Manhattan after they accidentally filed an internal government letter that cast significant doubt on the Transportation Department's effort to kill New York's congestion pricing program in New York, a government spokesperson said.

Lawyers for the U.S. Attorney's Office erroneously filed an April 11 letter late on Wednesday that said it was very unlikely Judge Lewis Liman or other courts would uphold Transportation Secretary Sean Duffy's decision.

A spokesperson for Duffy said the defense of the government's effort to end congestion pricing would now be handled by the Justice Department's Civil Division in Washington, rather than the U.S. Attorney's Office in Manhattan. The Justice Department did not immediately comment.

The Duffy spokesperson blasted the lawyers from the U.S. Attorney's Office, suggesting they were either incompetent or attempting to intentionally obstruct the effort.

"At the very least, it’s legal malpractice. It’s sad to see a premier legal organization continue to fall into such disgrace," the spokesperson said.

A spokesperson for the U.S. Attorney's Office said earlier that the filing was "an honest error and was not intentional in any way. Upon realizing the error, we immediately took steps to have the document removed. We look forward to continuing to vigorously advocate in the best interest of our clients, the DOT and (Federal Highway Administration)."

The office apologized for the error in a letter to Judge Liman Thursday and asked him to seal the filing.

New York in early January launched its first-in-the-nation program that charges most passenger vehicles a $9 toll during peak periods to enter Manhattan south of 60th Street to reduce congestion and raise money for mass transit improvements.

Duffy on Monday told New York Governor Kathy Hochul that USDOT may withhold environmental approvals or project funding if the state does not end congestion pricing.

This week, Hochul ignored a deadline set by Duffy to end the program. Hochul's office said on Thursday that the government's filing "doesn’t change the facts: congestion pricing is legal, it’s working and the cameras are staying on."

Evergreen Action, an environmental group, said that government lawyers "said it better than we ever could: Duffy’s case is flimsy, and his illegal order is falling apart."

The USDOT under Democratic President Joe Biden had approved the congestion program in November, which is monitored via electronic license plate readers. U.S. approval is needed because it involves tolls on federal highways.

Officials say the program, which follows similar ones in London and Singapore, has sharply cut traffic and eased the flow of vehicles. Opponents including Duffy say it takes money from working people and leaves drivers without a free highway option.

(Reporting by David Shepardson; Editing by Nick Zieminski and Daniel Wallis)

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