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NYC Congestion Tax Has Race-Based Carveouts—And That May Be Illegal
Critics warn the program's special treatment for ethnic minorities could expose it to legal challenges.
Mar. 16, 2026 at 2:06pm
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New York City's congestion pricing program, which charges drivers a toll to enter midtown and lower Manhattan, contains several 'mitigation efforts' and carveouts designed to limit the punitive impact of the new tax on ethnic minorities—without offering the city's non-minorities comparable treatment. Critics warn that such allowances could potentially expose the program to litigation from the Trump administration, which has shown a willingness to sue or take administrative action against anti-white discrimination.
Why it matters
The congestion pricing program is a key part of New York City's efforts to reduce traffic and auto emissions, but the inclusion of race-based carveouts raises concerns about the legality and fairness of the program. If the program is found to be discriminatory, it could face legal challenges that could jeopardize its implementation and funding for the city's public transportation system.
The details
The so-called mitigation efforts include installing pricey air filtration systems and roadside vegetation near certain ethnic neighborhoods, as well as preferential tolls for taxi drivers, who are overwhelmingly South Asian and black. Critics argue that these measures unfairly target certain racial groups without providing comparable benefits to non-minorities.
- The congestion pricing program took effect in January 2025.
- As of January 2026, the congestion tax has raised $550 million.
The players
Randy Mastro
A Democrat and one-time top deputy to former New York City mayors Eric Adams and Rudy Giuliani, who led legal efforts by the state of New Jersey to kill the new tax.
Bill Clinton
The former president who signed Executive Order 12898, which requires federal agencies to address disproportionately high and adverse human health or environmental effects on minority and low-income populations.
Metropolitan Transportation Authority (MTA)
The agency that oversees the congestion pricing program and has explained its aims to prioritize equity and environmental justice.
What they’re saying
“I think it would appeal to the Trump administration that the way the analysis was done was improper.”
— Randy Mastro, Former top deputy to New York City mayors
“Because the Biden administration, in particular, if you were an environmental justice community, there had to be particular mitigation provided in those communities.”
— Randy Mastro, Former top deputy to New York City mayors
What’s next
The judge in the case will decide on Tuesday whether or not to allow the race-based carveouts in the congestion pricing program.
The takeaway
This case highlights the ongoing debate over the use of race-based policies and the potential legal challenges they may face. It raises questions about the balance between addressing environmental justice concerns and ensuring fair and equitable treatment for all New Yorkers.
