The Federal Highway Administration approved the program on Friday, though it could still be stopped by lawsuits. President-elect Donald Trump is also opposed to the plan.
Slashing the original $15 toll raises questions about whether a smaller revenue stream could delay projects or lead to higher costs for New York’s public transit agency.
Transit leaders proposed a plan on Wednesday to spend more than $65 billion to upgrade New York City’s subway and bus system. Whether they will be able to fully fund it is unclear.
New York’s bus system has one of the worst fare evasion problems of any major city in the world. The issue is more pronounced on buses than in the subway.
The Federal Transit Administration released its audit nine months after a worker was hit by a train. If the M.T.A. does not comply, it could lose funding.
The suspension of congestion pricing has put off critically needed repairs to New York City’s transit network. Experts say the system hangs by a thread.
Gov. Kathy Hochul said she had found the money to restart some work on the project. It had been expected to be funded by the congestion pricing program, which she suspended.