A federal judge appointed by President Donald Trump ruled Tuesday that his administration’s effort to shut down New York City’s congestion pricing program was unlawful, allowing the tolling system to remain in effect.
U.S. District Judge Lewis J. Liman said the U.S. Department of Transportation lacked the authority to unilaterally revoke federal approval for the program, which charges drivers to enter Manhattan south of 60th Street. In a 149-page decision, Liman vacated a series of letters sent by Transportation Secretary Sean Duffy that threatened to withhold federal funding unless the tolls were halted.
“The Defendants’ termination of the [program] was unlawful, and that any attempt to enforce the February 19 Letter … would be unlawful,” Liman wrote, restoring New York state and the Metropolitan Transportation Authority to their prior position before the federal intervention.
The Trump administration has criticized congestion pricing as harmful to drivers and the regional economy, though the ruling noted that policy objections do not substitute for legal authority. State officials said the ruling preserves a program they credit with easing congestion, reducing pollution and generating hundreds of millions of dollars for public transit improvements.
A USDOT spokesperson told Newsweek via email Tuesday, “We disagree with the court’s ruling. Once again, working-class Americans are being sidelined under Governor Kathy Hochul’s policies, which impose a massive tax on every New Yorker. These Green New Scam policies have made federally funded roads inaccessible to commuters without providing a toll-free alternative.”
“We are reviewing all legal options—including an appeal—with the Justice Department. The Trump Administration will not stop fighting to make everyday life more affordable for American families,” the statement added.
Why the Judge Rejected the Trump Administration’s Move
Liman concluded that the Transportation Department exceeded its statutory authority when it attempted to withdraw approval previously granted under the federal Value Pricing Pilot Program. The congestion pricing plan was approved in 2024 during the Biden administration and formally implemented by New York in early 2025.
According to the ruling, nothing in federal law gave the transportation secretary the unilateral power to rescind that approval once the agreement was executed. Liman found that the department’s actions were “arbitrary and capricious” and not in accordance with the law, a standard that allows courts to invalidate agency decisions under the Administrative Procedure Act.
The decision specifically targeted letters sent by Duffy to Gov. Kathy Hochul and the MTA, which warned that federal transportation funding could be at risk if New York did not turn off the congestion pricing cameras. Liman vacated those letters, writing that New York was not legally obligated to cease tolling operations.
What the Ruling Means for NYC Congestion Pricing
The ruling ensures that congestion pricing will continue uninterrupted while other legal challenges remain pending. The program imposes a base toll of $9 on most passenger vehicles entering Manhattan below 60th Street during peak hours, with lower charges during off-peak periods.
State officials have argued the toll has reduced traffic volume, improved bus speeds and air quality, and created a new revenue stream for long-delayed subway and commuter rail upgrades. The MTA has said the program is expected to generate more than $500 million annually for transit infrastructure.
By restoring the status quo, Liman’s ruling prevents the federal government from enforcing funding threats tied to the program, at least under the authority asserted by the Transportation Department in this case.
Hochul, MTA Celebrate Court Victory
New York leaders quickly hailed the decision as a major legal and political win.
“The judge’s decision is clear: Donald Trump’s unlawful attempts to trample on the self-governance of his home state have failed spectacularly,” Democratic Gov. Kathy Hochul said in a statement. “Congestion pricing is legal, it works, and it is here to stay.”
MTA officials echoed that message, saying the ruling confirms the legality of a policy they view as essential to stabilizing the region’s transit system after years of budget strain.
Who Is Judge Lewis J. Liman?
Liman has served as a judge on the U.S. District Court for the Southern District of New York since late 2019. He was nominated by President Trump in 2018 and confirmed by the Senate later that year, receiving his judicial commission on Dec. 31, 2019.
Before joining the bench, Liman was a longtime litigation partner at Cleary Gottlieb Steen & Hamilton and previously served as an assistant U.S. attorney in Manhattan, where he rose to deputy chief of appeals. He also clerked for Supreme Court Justice John Paul Stevens and for Judge Pierre N. Leval of the Second Circuit.
This article includes reporting by the Associated Press.
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