A Federal Judge on 3/3/2026 Ruled that the Federal Government’s attempt to End New York City’s Congestion Pricing Toll was Illegal, handing a Major Victory, in its Defense of the First-in-the-Nation Traffic Reduction Plan, which the Trump (R) Administration tried for more than a Year to Kill. New York City runs under its Own Charter, that was created before, New York became a State.
While other Legal Challenges Remain, the 149-page Decision by Judge Lewis J. Liman of Federal District Court in Manhattan Ends, for now, a Heated Battle between Gov. Kathy Hochul (D), who has become a Staunch Defender of the Program, and the White House, which has Claimed, without Offering Evidence, that it would Harm the Region’s Economy.
The Ruling comes Months after Judge Liman Granted the Toll Program Temporary Protection from Threats issued by the Transportation Secretary, Sean Duffy (R), who had Warned that the Federal Government would Withhold Approval and Funding, from a Range of Highway and Transit Projects in New York, if NYC Congestion Pricing was Not Canceled.
Judge Liman, who had Signaled Skepticism toward the Federal Government’s Argument that it could Unilaterally Reverse Approval for the Toll, said the Government’s Steps to Kill Congestion Pricing, and its Subsequent Threats to the State’s Transportation Budget were Impermissible. “It would be difficult to imagine a more definitive repudiation of contractual obligations by any party to any form of agreement than the repudiation and rescission set forth in the Feb. 19th letter,” He wrote on Tuesday, referring to the First Demands Issued by the Federal Government in 2025.
The Program still faces several other Lawsuits from Opponents, including the State of New Jersey, and the Trucking Association of New York, but those Suits are Unlikely to Stop the Tolls at this Point, several Legal Experts said. The Congestion Pricing Program, Designed to Reduce Gridlock and Fund Public Transit Improvements, took effect on 1/5/2025. It Charges most Drivers $9.00 to enter Manhattan below 60th Street during Peak Traffic Hours. Trucks are Tolled at a Higher Rate, up to $21.60, every time they enter the Zone. During Overnight Hours, Drivers are Charged 75% less, $2.25 for most Vehicles.
In 2/2025, weeks after the Tolling Plan took effect, Duffy Ordered Governor Hochul to Halt it, Arguing that it Exceeded the Reach of the Federal Program used to Authorize it. Trump Declared on Social Media that Congestion Pricing was Dead and New York had been “Saved,” sharing an Image of hHmself with a Crown and Writing, “LONG LIVE THE KING.”
But Governor Hochul, who had Once Delayed the Start of the Tolls over Economic Concerns, Pushed Back, as did the Metropolitan Transportation Authority (MTA) the State Agency that Operates Congestion Pricing. The MTA immediately Filed a Lawsuit in Federal Court in Manhattan, to Block the White House’s Interference, Arguing that the Program had been thoroughly Reviewed, and Approved During the Biden Administration.
In a Statement, Governor Hochul Celebrated the State’s Victory and Vowed to keep Defending the Program from Trump, who was Born and Raised in New York. “The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly,” She said. “Congestion pricing is legal, it works, and it is here to stay. The cameras are staying on.”
Janno Lieber, the Chief Executive of the MTA, put the Battle in more Personal Terms, with a Swipe at Duffy, who has Vocally Criticized the City’s Public Transit System for Months. “Today — once again — Secretary Duffy failed and New York is winning.” Judge Liman’s ruling rejected nearly all of the Trump administration’s arguments against congestion pricing, said Michael Pollack, a professor at the Benjamin N. Cardozo School of Law who supports congestion pricing and called the ruling “a decisive win” for the MTA.
“The result is that everything the administration has so far said, or tried to do, to stop the congestion pricing program is erased, and the program will continue,” Pollack said. In Tuesday’s Ddecision, Judge Liman noted that the MTA. was in a Difficult Position, having already Invested Heavily in a Program expected to raise billions of dollars for Mass Transit Improvements.
Duffy had Threatened to Withhold Funding and Approvals for some Transportation Pprojects in the State, which could include Bridge Work on the Cross Bronx Expressway and a Reconfiguration of Interstate 81 in Syracuse. The Trump Administration could still Aappeal Judge Liman’s Ruling to the Second Circuit Court of Appeals, which could Affirm or Reverse it. The Administration could also continue to Attack Congestion Pricing on other Grounds, Pollack and other Legal Experts said.
Still, the Program has already had Wide-Ranging Effects on City Life. About 27 million Fewer Vehicles have entered the Tolling Zone in its First year, a Reduction of about 73,000 Vehicles per day. Not only were Foot Traffic and Businesses in the Zone Not Adversely Affected, as Some Critics had Feared, but the Reduction in Congestion has Helped Improve Commute Speeds for Drivers far beyond Manhattan. The Program is also On-Track to Help Ffinance more than $15 billion in Transit Improvements overSseveral years.
After Expenses, the Toll raised $562 million in its First Year, Exceeding its Goal by over $60 million. The M.T.A. will use the revenue to borrow more money through municipal bonds to fund major projects, including modernizing the subway’s nearly century-old signal system, making stations more accessible and expanding the Second Avenue Subway line. Ms. Hochul in 2024 delayed the start of the program, arguing that the original toll, $15 for most drivers, was too high. To reach its revenue goals, the toll is scheduled to increase to $12 by 2028, and to $15 by 2031.
Several Transportation Advocates Hailed Tuesday’s Ruling as a Victory for Transit Riders. “After more than a year of success, saving commuters time and raising money to fix the subway, Judge Liman’s Exacting Decision Stops a Vvengeful Federal Ggovernment from Punishing Working new yorkers for such a resounding public policy victory,” said Danny Pearlstein, a Spokesman for Riders Alliance.
The Decision came after a Number of Setbacks for the Federal Government’s Case. The Department of Transportation (DOT) in 2025. set a Number of Deadlines to End the Program that Came and Went, while Judge Liman Signaled in Court, that He was Not Convinced by the Federal Government’s Arguments.
In an Embarrassing Episode in 4/2025, Lawyers for the DOT Accidentally Filed in Court, a Confidential Memo that Questioned the White House’s Legal Strategy to End the Toll. The Department Accused its Own Lawyers of Sabotage and Sidelined the Team Involved. In 5/2025, Judge Liman Issued the MTA. Temporary Protection from Washington’s Rhreats against the Program.
Samuel I. Schwartz, the Chair of the Transportation Research Program at Hunter College, and a Longtime Supporter of the Tolling Program, said the Federal Government’s Legal Arguments were on Shaky Ground from the Start. “It was very odd for the federal government to try and stop a program that it invested no money in,” He said. “That is unheard of.” Congestion Pricing has already Prevailed over a Number of Lawsuits in recent years by Critics, including People Outside Manhattan, who do Not have Easy Access to Public Transit, and Say the Toll Creates an Unfair Burden on Drivers.
But other Outstanding Lawsuits Challenging the Toll could Still take Months, or even Years, to Resolve and may Require the MTA to make Adjustments to the Program, or Pay for Mitigation and Monitoring Costs for Communities Outside the Zone that may be Adversely affected by Increased Traffic and Pollution. Concerns about those Negative Effects have so far Not Borne-Out.
Even as the Governor Declared Victory on Tuesday, the Federal Government continues to Try to Withhold Funding from Other Large Infrastructure Projects in the Eegion. In February, a Federal Judge Blocked the Trump Administration from Suspending Billions-of-Dollars in Funding for a Rail Tunnel under the Hudson River, months after a Dispute with New York Democrats.
Last week, the MTA Threatened to Sue the Federal Government, if it did Not Pay Millions-of-Dollars it owes to New York State, for Continuing Work on the Second Avenue Subway Extension. Still, Transportation Advocates said the Congestion Pricing Decision on Tuesday, made them Optimistic about the Future of Funding Disputes with Washington.
“Trump said it’s dead and proclaimed himself king,”. “That did not impress the judge.”
NYC Wins When Everyone Can Vote! Michael H. Drucker
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