Federal Judge Rules Trump Administration’s Move to End NYC Congestion Pricing Was Unlawful
The Facts
- U.S. District Judge Lewis Liman ruled that the U.S. Department of Transportation’s effort to terminate New York City’s congestion pricing program was unlawful.
- Liman found that the Transportation Department, including Secretary Sean Duffy, lacked authority to unilaterally revoke or rescind federal approval for the congestion pricing program.
- The judge described the Trump administration’s reversal as “arbitrary and capricious” and not in accordance with law.
- The ruling allows New York City’s congestion pricing program, administered by the Metropolitan Transportation Authority, to continue operating.
- New York’s congestion pricing program is the first-of-its-kind in the United States and has been in effect since January 2025.
- The program charges most passenger vehicles a $9 toll during peak periods to enter Manhattan south of 60th Street.
- The congestion pricing system is designed to reduce traffic congestion and raise revenue for upgrades to New York’s aging subway and bus systems.
- Judge Liman had previously issued a temporary restraining order in May preventing the federal government from withholding funding for New York transportation projects over the congestion pricing program.
Context
What is New York City’s congestion pricing program and where does it apply?
New York City’s congestion pricing program is a tolling system that charges most passenger vehicles a fee to enter Manhattan’s central business district, with a $9 charge during peak periods for vehicles entering south of 60th Street. It is intended to be a first-of-its-kind program in the U.S., launched in January 2025, to manage traffic and generate revenue for transit improvements. Devdiscourse,Daily Mail,Yahoo! Finance,Independent,Reuters,U.S. News & World R…,NewsMax,Star,Alternet.org,Orange County Regis…,NBC New York
Why did the Trump administration try to end the congestion pricing program?
The Trump administration, through Transportation Secretary Sean Duffy and the U.S. Department of Transportation, moved in early 2025 to revoke federal approval for the congestion pricing program, arguing there were legal problems with the plan and threatening to withhold federal funding for New York projects if the tolls were not scrapped. Opponents, including the administration, contended that the tolls burden drivers and commuters. Reuters,Hill,NewsMax,Daily News,Newser,Gothamist,Democratic Undergro…,ABC7 New York,Newsday
What are the implications of Judge Liman’s ruling for New York’s transit system and federal authority?
Judge Liman’s decision preserves the congestion pricing program as an ongoing revenue source for the Metropolitan Transportation Authority, which uses toll proceeds to fund major mass transit improvements, and it prevents the federal government from using the 2025 termination attempt to cut off funding over the tolls. The ruling also limits the Transportation Secretary’s ability to unilaterally revoke previously granted approvals for such programs, requiring more formal, legally grounded decision-making. Devdiscourse,POLITICO,Reuters,Bloomberg Business,Hill,NewsMax,Daily News,Gothamist,ABC7 New York,Washington Examiner,Newsday
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