Congestion pricing lives on after federal judge rules Trump’s effort to end program unlawful

New York City’s congestion pricing program will live on, as a federal judge on Tuesday ruled that the Trump administration’s attempt to nix the toll system was unlawful. In a 149-page decision, Judge Lewis J. Liman called U.S. Transportation Secretary Sean Duffy’s move to end the program “arbitrary and capricious,” but he did not bar future attempts to halt it. The Metropolitan Transportation Authority (MTA), which sued the U.S. DOT in February 2025 to prevent the program’s elimination, can now continue operating the system indefinitely.

The ruling comes after Judge Liman granted temporary protection in May, following threats from Duffy in April to withhold approval and funding for numerous New York highway and transit projects if the program was not canceled.

Under the program, drivers entering Manhattan below 60th Street pay a base toll of $9, a fee designed to discourage vehicle travel through the borough’s central business district and reduce traffic.

The Trump administration’s efforts to cancel the program have persisted despite strong evidence of its effectiveness. In January, officials reported that 27 million fewer vehicles entered Manhattan south of 60th Street, resulting in an 11 percent reduction in traffic during the program’s first year. Officials also projected that congestion pricing would generate $550 million in revenue, about $50 million more than originally expected.

Additionally, crashes in the congestion pricing zone declined by 7 percent, with traffic injuries down 8 percent. Noise complaints also fell, with 311 data showing reports of issues such as horn honking dropped 17 percent compared with the same period in 2024.

In a statement, Gov. Kathy Hochul praised the ruling, declaring that congestion pricing is “here to stay.”

“We’ve said it all along, and Judge Liman’s clear, detailed ruling leaves no doubt: congestion pricing is legal. It’s here to stay. And it works,” Hochul said. “Traffic is down, business is up, and we’re making crucial investments in a transit system that moves millions of people a day. Today—once again—Secretary Duffy failed and New York is winning.”

Danna Almeida, a spokesperson for the U.S. Department of Transportation, said in a statement that the agency is reviewing all legal options, including a possible appeal with the Justice Department, according to Gothamist.

“We disagree with the court’s ruling,” Almeida said. “Once again, working-class Americans are being sidelined under Gov. Kathy Hochul’s policies, which impose a massive tax on every New Yorker.”

Congestion pricing’s victory over the federal government adds to a growing list of legal wins for the program in recent years. In July 2023, New Jersey Gov. Phil Murphy filed a lawsuit seeking to block the tolling system, but a federal judge later rejected the challenge and allowed the program to proceed.

The program also survived a dramatic reversal by Gov. Kathy Hochul. Just weeks before its scheduled June 2024 launch, she indefinitely paused congestion pricing.

At the time, Hochul said circumstances had changed since the program’s 2019 approval, pointing to the lingering effects of the pandemic and high inflation on New Yorkers. She cited those factors as justification for halting the tolling plan “indefinitely.” Sources also said she worried the program could hurt Democrats in House races later that year.

After President Trump won a second term, however, Hochul announced that congestion pricing would take effect the following January with a reduced $9 toll, down from the originally proposed $15 fee.

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