Judge Upholds NYC Congestion Pricing, Rejecting Trump Administration’s Challenge

A federal judge has blocked the Trump administration’s efforts to halt New York City’s congestion pricing program, marking a significant victory for the Metropolitan Transportation Authority (MTA) and proponents of the plan. U.S. District Judge Lewis Liman ruled on Tuesday that the U.S. Department of Transportation lacked the authority to unilaterally rescind approval of the $9 toll, initially approved by the Biden administration.

Background of the Ruling

The lawsuit stemmed from the Trump administration’s attempt to block the congestion toll, which applies to most vehicles entering Manhattan south of 61st Street. The toll, which began on January 5, 2025, aims to reduce traffic congestion and generate revenue for improvements to the city’s public transportation system.

Judge’s Reasoning

Judge Liman found that the Department of Transportation’s reversal was “arbitrary and capricious” as the agency did not adequately explain its reasoning. He emphasized that the New York legislature passed the toll, it was signed into law by the governor, and it received the necessary federal approvals before its launch. “The democratic process worked,” Liman wrote in his 149-page ruling, while also acknowledging the possibility of future challenges to the program.

Reactions to the Decision

New York Governor Kathy Hochul hailed the decision as a vindication of a “once-in-a-lifetime success story.” She stated that the program has already yielded benefits, including reduced gridlock and increased funding for mass transit. “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 statement. NBC New York

Spokespersons for the U.S. Transportation Department have not yet responded to requests for comment.

How Congestion Pricing Works in NYC

The congestion toll is levied on most vehicles driving into Manhattan south of Central Park. The fee varies based on vehicle type and time of day, and is added to existing bridge and tunnel tolls. The standard toll is approximately $9. Wikipedia

History of the Program

The idea of congestion pricing in New York City dates back to 2007, and was included in the 2019 New York State government budget. The program was initially proposed as a way to address the city’s severe traffic congestion, which, as of 2024, was the worst in the world. Wikipedia

Impact and Revenue

According to a recent MTA report, the congestion toll has led to a reduction of approximately 27 million vehicles entering the heart of Manhattan, resulting in a 22% decrease in air pollution and a 23% improvement in commute times for drivers who pay the fee. The program has also generated over $550 million in revenue for the region’s transit system, exceeding initial projections. NBC New York

The MTA estimates that the program will generate $15 billion in capital funding through bond revenues, which will be used to repair and improve the subway, bus, and commuter rail systems. Wikipedia

Trump’s Opposition

Former President Donald Trump has consistently opposed congestion pricing, particularly as it affects areas where he owns properties, including Trump Tower. During his presidential campaign, he vowed to eliminate the plan. His administration, through then-Transportation Secretary Sean Duffy, attempted to rescind the toll’s federal approval in February 2026, calling it “a slap in the face to working-class Americans and tiny business owners.” Politico