Congestion pricing survived yet another challenge Tuesday after a federal judge ruled that the Trump administration’s attempt to kill the Manhattan toll program is unlawful.
In his 149-page decision, U.S. District Judge Lewis Liman made clear that U.S. Department of Transportation (USDOT) Secretary Sean Duffy lacks the legal authority to unilaterally void a program established through a contract signed by a previous Transportation secretary.
Congestion pricing was approved by Duffy’s predecessor, former DOT head Pete Buttigieg, under ex-President Joe Biden in 2024.
“The Secretary’s actions were arbitrary and capricious, an abuse of discretion, and not in accordance with law. Accordingly, his actions purporting to terminate that agreement, including the February 19 letter and the April 21 letter, are vacated,” Liman wrote of two letters the Duffy sent the Gov. Kathy Hochul and the MTA last year threatening federal funding for infrastructure projects if they did not shut congestion pricing down.
“Plaintiffs are thereby relieved of the obligation to cease tolling operations. Plaintiffs are restored to their position prior to the issuance of the February 19 Letter,” he added.
Liman’s ruling came in response to a suit brought by the MTA nearly a year ago, challenging Duffy’s initial demand that it end the program. The state ignored Duffy’s initial and subsequent threats, taking the Trump administration to court instead.
The ruling marks the latest in a slew of legal challenges to congestion pricing, aimed at killing the program, most of which have been defeated in court.
Hochul and the MTA have touted congestion pricing, which charges drivers entering Manhattan below 60th Street a $9 base toll, as a sweeping success. During its year of operation, the state says the program has reduced the number of vehicles entering Manhattan below 60th Street by 11%, cut air pollution by 22%, increased vehicle speeds by 2.3%, and boosted public transit ridership.
“The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly,” Hochul said in a Tuesday statement. “Congestion pricing is legal, it works, and it is here to stay. The cameras are staying on.”
The governor has become one of congestion pricing’s fiercest champions, after pausing its implementation for several months in 2024 in a bid to help Democrats take back the House of Representatives.
The program is also projected to generate over $550 million in its first year. The MTA will use that money to secure $15 billion in federal bonds to pay for a bevy of upgrades to the subway system and has already used some of it to pay for certain projects, such as installing elevators in several stations and upgrading aging signal systems.
“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,” MTA Chair and CEO Janno Lieber said in a statement.
“Traffic is down, business is up, and we’re making crucial investments in a transit system that moves millions of people a day,” he added. “Today—once again—Secretary Duffy failed and New York is winning.”
In a statement, a USDOT spokesperson said the agency is “reviewing all legal options—including an appeal—with the Justice Department.”
“We disagree with the court’s ruling,” they said. “Once again, working-class Americans are being sidelined under Governor Kathy Hochul’s policies, which impose a massive tax on every New Yorker.”
Transit advocates also celebrated Liman’s ruling.
Danny Pearlstein, spokesperson for the group Riders Alliance, described the ruling as yet another in an “uninterrupted winning streak on our streets and in the courts” for congestion pricing.
